Money Worries? – 5 Tips to Help You Sleep Better

Being unable to get to sleep is incredibly frustrating. No matter how many sheep you count, you just lie there tossing and turning. Or you wake in the middle of the night with some issue on your mind and can’t get off to sleep again.

A good night’s sleep is vital for people to function properly. According to NHS guidance that’s typically between 7 to 9 hours a night for most adults. But stress and anxiety often prevent that.

Research by the Mental Health Foundation in 2023 found that 30% of adults in the UK reported poorer quality sleep, which was attributed to financial worries. The continuing cost of living crisis has only added to the problem, with energy bills, food bills and low disposable income being some of the main factors causing these concerns.

Practical action

 There are various steps you can take to help you get to sleep including:

• Going to bed and waking up at the same time
• Relaxing at least an hour before bed
• Not drinking any tea or coffee at least 6 hours before bed
• Keeping your bedroom dark
• Exercising regularly during the day
• Not using your smartphone just before going to bed

We’ve also identified five money-specific habits which can help ease the financial angst.

1. Budgeting

One of the best ways to combat worry is to take control. By drawing up a budget, you can feel more in charge of your money. List all your expenditure, including monthly and yearly bills, like road tax and insurance. This way there won’t be any nasty surprises and you can plan ahead. With your clear budget drawn up, you’ll be able to put any money left over each month into a savings account.

Another part of your budget should be for an emergency fund. Unexpected events, such as losing your job, medical expenses and car or home repairs could have a major impact on your finances. So, it’s recommended to have at least 3 – 6 months living expenses set aside for a rainy day. You might not know what the unexpected will be, but at least you’ll be in a better position to take care of it.

2. Cut back on your spending

 If your money worries are being caused because you feel you’re living outside your means, take a look at ways you could save money. Your energy bills are no doubt a major part of your expenditure. So don’t leave your appliances on standby, using electricity and costing valuable money. Switch off your dishwasher, microwave and television at the wall. Assess everything in your home with a critical eye.

Subscribing to several media streaming services at the same time can get expensive. Consider rotating your subscriptions, especially if you’re only watching one or two shows a week on each platform. You could decide to pause or cancel one, once you’ve finished watching the programmes you’re interested in.

Get the most out of your loyalty cards for the supermarkets and high-street stores you visit regularly. Keep an eye out for any offers and make the most of any discounts before the vouchers expire.

By being organised, you’ll find many ways to save money. That’s rewarding in itself and encourages you to look for new opportunities.

3. Make the most of your money in retirement

You could find yourself worrying in the middle of the night about your pension and retirement funds. Will you have enough money to live the lifestyle you want in later life?

To overcome these concerns, make sure you prepare in advance by planning for your retirement properly. Think about how long your retirement will be, how much money you’ll need and where the money will come from. In 2024/25, the basic State Pension is £169.50 per week and the full State Pension £221.20. Make sure you’ve made enough National Insurance contributions (usually 35 years’ worth) to get the full State Pension.

Look through any paperwork you have on your personal or company pensions and add up the total amount you have in them. You can use the Pensions Tracing Service to track down any old pensions. Also, check how much you have in your savings accounts and investments, including ISAs, property investments and stock market funds.

Don’t forget to consider inflation and the fact people are living longer so your retirement may cost more than you’ve anticipated. But, by finding out where you stand regarding your retirement and being able to take action, you’ll hopefully be able to look forward to that part of your life rather than lie awake worrying.

4. Create financial goals

Things often seem worse at night. Your money worries may hang over you like a big, black cloud. Or seem like an insurmountable mountain. But, if by day, you set clear, achievable objectives, it could help reduce your anxiety and give you a sense of achievement as you tick them off.

So, in the short term you might decide to set a budget, pay off a credit card or start an emergency fund.

And in the long term you might set goals around buying a home, funding your children’s education or saving for retirement.

You’ll feel you’re on a clear pathway to fulfil your ambitions.

5. Get professional help

A trouble shared is a trouble halved. Don’t worry about your finances on your own. Talk to a professional financial adviser and get the benefit of their knowledge and expertise.

They’ll be able to assess your situation and give you personalised advice regarding your savings, investments and retirement planning. Plus, they’ll help you develop a strategy to achieve your financial goals.

We hope our top tips will allow you to feel more in control of your finances and sleep better at night as a result.

Please get in touch with one of our team if there is anything you’d like to discuss in more detail.

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