6 ways to improve your finances as one in five feel stressed about money

Financial stress is something most of us will experience at some point because no matter how carefully we plan, we can’t control every factor that affects our finances.

That could be a struggling economy, a cost of living crisis, soaring inflation, job loss, illness, a leak at home - even just an unexpected car breakdown. These are all common examples that lead to financial pressure - and many of which we're all living through right now and have no control over.

More than 20% of Britons aren't feeling optimistic about their finances improving in 2025, according to Moneybox.

Its annual Money Mindsets study found the main reasons people were stressed about money this year are:

Looking back over the last year, 38% were finding it hard to save regularly and 21% were living payday to payday.

So what can we do to reduce money stress and build financial resilience?

Accountant Peter Tran, who is also senior contributor at loan calculator Amortization Calculator says: "When people talk about reducing financial stress, the first piece of advice is usually to 'check your bank account'. While staying informed is essential, it’s hardly enough. Financial resilience doesn’t come from obsessively refreshing your banking app - it comes from systems, habits, and mindset."

1. Start learning

People aren't just born with financial resilience. It takes time to understand what works for you and how to be savvy with your cash.

Mr Tran says: "Knowledge plays a significant role here, too. I always encourage clients to spend a bit of time each week learning—there are podcasts, free online courses, and personal finance blogs that can change how you think about money. The more you understand, the less scary things feel."

Reading NimbleFins content is a good start! We have so many resources on how much things should cost, how to get the best insurance, reviews on providers, and the best ways to navigate financial issues so you're not short changed.

Mr Tran adds: "You can’t control the economy, but you can control your habits. You can learn, adjust, and keep taking small, steady steps. That’s how financial resilience is built - by staying engaged, staying kind to yourself, and remembering that real change comes from what you do consistently, not what you do once."

2. Manage your debt

The average household debt in the UK is about £17,174, according to our research.

And that's not including mortgages.

Personal loans, car finance and credit cards make up a vast percentage of the debt Britons have and it can feel like a weight on your shoulders, with interest payments stopping you from saving up proactively.

For those wanting to clear their debts, some decide to pay the debt with the highest interest first, (the avalanche method), while others go for the snowball method where they pay the smallest balance first.

Mr Tran said: "Debt is a significant source of anxiety, but it’s manageable with the right plan.

"One thing I’ve found helps a lot is setting small, reachable goals. Instead of saying, 'get out of debt', aim to pay off one credit card and build a £500 savings buffer. Those wins add up. Recognise them. Celebrate them. It’s not about perfection - it’s about progress.

You can also tell potential lenders you don’t want them to lend to you, payroll software company PayCaptain says. They told us: "You can do this by adding a ‘note’ to your credit file. Reference agencies Experian and TransUnion offer this service."

Victoria Copeland, partnerships manager at MoneyHelper, which partners with PayCaptain, said: “If you’re in debt and experiencing poor mental health, to avoid your situation getting worse, there are three things you can do:

"1) Ask a trusted person to look after your post, such as a relative, friend or a support worker. 2) Don’t ignore the companies and people you owe money to, or it’s likely they’ll continue to chase you rather than giving you time to sort things out. 3) If you’ve bought something and then decide you can’t afford it or don’t want it, cancel or return items and get your money back. 

"Find out more about your consumer rights”.

3. Rotate your focus

With so many financial pressures right now, it can feel overwhelming. So you may feel a little more at ease by focusing on one thing at a time, Fred Winchar, president and CEO of US financial brokerage Max Cash says.

He told us: "There is a lot to do, saving, investing, paying debts and shopping.

"Attempting to do everything once will lead to more financial stress. Instead, rotate.

"For example, focus on repaying debts in April, go for clothes and shoe shopping in May and invest in shares or stocks or money market funds in June. The rotation prevents burnout and guarantees well-rounded stability."

4. Get comfortable saying no

If you're easily convinced to spend more than you'd like when it comes to family and friends, you might want to start building some boundaries, Vix Leyton, consumer expert and host of the Spendology podcast, says.

This could be telling the hen or stag do organiser that you have a certain budget you need to stick to and pulling out if it goes over, or challenging calls to split the bill equally.

If gift giving has gone a bit overboard in your friendship group or family, it's worth raising it too.

Vix told us: "A lot of additional financial pressure often comes from the social spending you don't typically plan for, and odds are there is at least one other person in your circle that will be secretly thanking you for doing that."

Another part of getting comfortable with the uncomfortable is to call your providers as soon as you're feeling the pinch so you can work out your options such as payment plans or breaks, Vix says.

"Millennials especially hate to do it but I have gritted my teeth over last few years and it has been a god send in prioritising segueing my spare cash into paying off higher cost debts quickest."

5. Do you need it right now?

Have you ever popped to the shop round the corner for that missing ingredient and then don't end up using it for four days?

And how much extra did you spend on it because it was convenient, compared to if you'd have waited to do the weekly shop at your usual cheaper supermarket?

Ask yourself if you actually need that item right now, or tomorrow, or if it can wait until you go somewhere it'll be cheaper.

Vix says: "Amazon has become a way of life for people and it is very easy to go straight there when looking for something you have just realised you need but you can risk paying an immediacy premium. If it can wait, it's worth shopping around locally."

6. Prepare for the unexpected - it will happen!

You can't predict everything that life is going to throw at you, but you can predict something will probably come down the track that you weren't expecting.

"Financial resilience starts with treating uncertainty as just another line item: if you expect it, you can plan for it," family lawyer Joanna Smykowski says. "I tell clients that the goal isn’t to predict every expense or dodge every setback, it’s to give tomorrow’s crisis less room to derail today’s life."

Joanna breaks this down into these areas:

Take a look at our article here for all the details: NimbleFins Best Savings Accounts Guide

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