The Financial Cost of Feeling Frazzled: Stress and Your Bottom Line

The impact of stress goes far beyond your health; it can have a significant effect on your financial well-being. A clinical psychologist explains how the physiological and cognitive effects of stress can lead to poor decision-making, decreased productivity, and ultimately, a lower earning potential.
When you are chronically stressed, the “CEO” of your brain—the prefrontal cortex—is impaired. This is the part of your brain responsible for financial planning, impulse control, and complex decision-making. A stressed brain is more likely to make impulsive purchases and poor long-term financial choices.
Furthermore, the physical toll of stress directly harms your career. The lethargy, burnout, and depression caused by stress are major drivers of lost productivity. This can lead to missed opportunities for raises, promotions, and bonuses. The expert notes that unmanaged stress is a hidden handicap in the race for success.
Investing in stress management is one of the best financial investments you can make. The five recommended strategies are free and yield high returns. By taking breaks, managing relationships, and shifting your mindset, you improve your cognitive function and physical health, making you a more effective and productive professional. This leads to better career outcomes and a healthier bottom line.