Worried about Money? You’re not Alone

Catherine Alexander
Partner and Mortgage & Protection Adviser at GDA

For many working people, money worries are a constant, quiet burden that lingers behind the daily grind. Despite holding down a job, living costs, stagnant wages, and unexpected expenses can make it feel like there’s never quite enough to go around. The pressure to stay financially afloat while planning for the future, supporting a family, or simply keeping up with bills can be exhausting. It’s a stress that can take a real toll on mental health and overall well-being.

So it may be interesting to know that:

• Almost a quarter of working people worry about money every day, and nearly 60% worry about it weekly or more frequently.

• Nearly 1 in 5 workers regularly run out of money before payday, and almost 10 million borrow money to buy food or pay bills.

• Most people understand the importance of long-term saving, but very few are comfortable with their current levels of savings.

• Around half of us don’t feel confident about managing our money day-to-day.

• Those in a poor financial situation are around four times as likely as others to suffer from depression or anxiety. .

And money worries don’t only affect those on low incomes. Higher earners, and those with accumulated wealth, tend to invest more of their money. And some may feel stressed about their investments at various times - particularly when stock markets are volatile. So although we tend to avoid thinking it, it’s good to have some strategies for how to deal with some of them.

1. Deal with priority bills first.
   Not paying money owed on your priority bills (council tax, utility bills, mortgage or rent, child maintenance, or hire purchase payments – on essential items) can have serious consequences. There are many free debt helplines available that can give you professional help and guidance.

2. Pay down expensive debts.
   If your priority bills are under control, you may want to consider paying down other ‘expensive’ forms of debt, including personal loans, credit and store cards, and even payday loans. Remember, you’ll typically pay much higher interest rates on these loans than on a mortgage. So, do what you can to pay down expensive debts and keep them down.

3. Cut the interest on your debts.
   Cutting the interest cost on any loans you have is a good way to reduce your money worries too. Remember, the credit card and loan market is competitive and constantly changing. So, if your credit rating has improved since you last opened a credit account, you may find you can access a lower-cost loan now.

4. Claim benefits that you are entitled to.
   Most people are surprised that some state benefits are available to higherincome earners. This may explain why millions fail to claim thousands of pounds in state benefits each year. It’s hard enough to cope with the cost of living and repay expensive debts without being unnecessarily short of income. So, be sure you claim your entitlements.

5. Keep your mortgage under review.
   If you’re worried about high-interest charges on your mortgage now or in the future, consider talking to a good mortgage broker (or your financial adviser if they offer this service). They should be able to help you explore your options for reducing or capping those costs. Also, if you can afford to overpay your mortgage, you might worry about whether it’s best to do so or if you should invest that spare money (into your pension, for example) instead. Again, an adviser will help you explore those options and ensure you avoid unnecessary charges on any extra repayments you make.

6. Save and invest for the future.
   Finally, for working people, if you’re in a position to save or invest for your future, you might worry about which strategy or products and funds to choose. There is, after all, an enormous choice. This is where a financial adviser can help – a crucial part of their role is to help you understand your f inancial choices and make good decisions.

If you’re retired or thinking about retiring soon, you may have similar worries about paying bills and paying off debts. So, it really helps to have a clear picture on the income you’ll need in retirement – and have clarity on where that money will come from. The exact amount you will need depends on your unique circumstances, the lifestyle you want, your health and the situation of anyone you live with - however, the Pensions and Lifetime Savings Association have published some research which might give you a rough idea of the income you’ll need for a minimum, moderate or comfortable retirement.

Retirement Living Standards research of the Pensions and Lifetime Savings Association.

The key to avoiding money worries in retirement is to start planning early, and that’s where financial advice can really be invaluable.

There is also another crucial question that most of us don’t think about enough. And that’s about what will happen if you, or your partner, if you have one, fall seriously ill or die unexpectedly? You may therefore wish to consider getting advice on estate planning, making (or updating) your wills, setting up a Power of Attorney, leaving your finances in good order (for someone else to manage them when they need to) or boosting your income, if you need to, by, for example, downsizing your home. If required, it’s also sensible to check you have enough life and ill-health insurance in place – to provide for your loved ones or enable them to look after you if need be.

While money worries can feel relentless, having good financial strategies in place can make a world of difference. Budgeting, planning, and seeking professional advice aren’t just practical steps—they’re tools for reclaiming peace of mind and building long-term stability. With the right approach, even small changes can lead to greater confidence and control over your financial future. Ultimately, it's not just about managing money—it's about reducing stress, protecting your well-being, and creating space to focus on what truly matters.

References

1. Data is drawn from various surveys conducted by the Money Advice Service, Office for National Statistics (ONS) and various financial service providers, including Fidelity, Salary Finance, Wagestream, UBS and ABRDN.

This article is for general information and does not constitute personal financial advice. If you’re unsure what’s best for you, seek independent financial advice.