6 Ways to Defuse Money-Related Stress in 2025

Many Canadians name money as their top source of stress and anxiety. Here are some steps you can take to feel more optimistic about money in 2025.

If your wallet feels light but your financial anxiety is heavy heading into the new year, you’re not alone. Thanks to sky-high housing costs, food price inflation and mounting credit card debt, financial stress is hitting Canadians hard.

Money ranks as the top stressor for 44% of Canadians, up from 40% the year prior and 38% in 2022, according to FP Canada’s 2024 Financial Stress Index. Nearly half (49%) of Canadians say they lose sleep at night because of financial concerns, according to the index.

Despite these rising stress levels, 91% of Canadians say they’re proactively trying to reduce financial stress — a type of self-care that may be simpler than it seems.

The first step is recognizing when financial issues require intervention, before they become unmanageable, says Aja Evans, a certified financial therapist and author of “Feel Good Finance.”

“If you’re trying to go into your accounts to check them, and you’re sweating, your heart is racing or you’re having trouble breathing, these are all markers of depression and anxiety and the impact it can have on your body,” Evans points out.

But there’s hope (and help) to take control of your money — and your mental wellness. And it starts with awareness.

1. Look your finances in the eye

“People are not looking at their money,” Evans says. “It’s really important that you understand what you have coming in…versus what you have going out.”

Consider a budgeting app, or a good, old-fashioned spreadsheet to track your income and expenses. Some apps can be connected to your banking or credit card accounts for seamless tracking that provides a holistic picture of your personal cash flow.

No matter what system you prefer, the key is finding what works for you and using it consistently, says Evans.

2. Set realistic goals

Next, ask yourself what goals you can feasibly achieve given your current income and monthly expenses.

Paying off debt might be your top priority. Or perhaps you want to sock away $1,000 in an emergency fund by the end of the year. Or maybe you want to start saving for a down payment on a house or investing in an RRSP.

Avoid making your goals too aggressive or unattainable in a certain time frame, which could perpetuate more shame and anxiety around money if you fail, Evans cautions. Think of your financial journey like a marathon rather than a sprint.

3. Confront your debt monsters

If you have a high-interest debt, such as a credit cards or personal loans, focus on paying off those accounts first while making minimum payments on other loans. A financial professional can recommend the best debt repayment strategy for your situation and goals.

When tackling debt it’s important to watch your spending. However, avoid subscribing to a dramatic, no-spend ultimatum, which can foster an unhealthy money mindset.

“There are enough gurus out there who are shaming people into not spending their money at all, but this does not help people,” says Evans.

She adds that an all-or-nothing spending mentality perpetuates a shameful association with money that can leave people unable to spend or enjoy it without anxiety — even after becoming debt-free.

4. Celebrate your wins

Whatever your goals are in 2025, know that the money-mind connection is powerful.

Celebrate your wins with affirmations or rewards, like treating yourself to a free activity in your community with a loved one or friend. And don’t stop there; use your current wins as motivation to keep reaching your goals or create new ones, such as investing or saving for a home or retirement.

If you factor in rewards when you achieve your goals, it’ll motivate you to keep going. The best part? You don’t have to spend any money to celebrate those wins, Evans says.

5. Aim for consistency, but be kind to yourself

Being consistent is how you’ll make progress, but if you have a setback (and you likely will), it’s OK.

Unexpected expenses will come up, you’ll forget to track your spending, or you’ll make an impulse buy that blows your budget.

Instead of letting negative thinking take over and derail your progress further, take a deep breath, revisit your goals and get back on track as soon as you can.

Above all, be compassionate with yourself. You’re doing the best you can with what you’ve got.

6. Know where to find help

If you feel overwhelmed by financial stress, consider working with a financial therapist or a certified financial planner (CFP).

You can also seek assistance from a nonprofit credit counselling agency, such as Credit Canada or Consumer Credit Counselling.

Additionally, the Canadian government provides a comprehensive online list of mental health resources that may be helpful if you find yourself in crisis.

Financial stress doesn’t have to be your constant companion in 2025. Every financial journey starts with a single step; sometimes, that step is just asking for help.