What Is Financial Stress?

Dave Ramsey defines financial stress as “worry, fear, and anxiety about finances,” often causing symptoms like insomnia, headaches, and fatigue. Amid the COVID-19 pandemic, more than half of U.S. employees cited financial stress as their top concern. That includes you, your team, and your patients.

Even before COVID-19, financial stress was the #1 stressor for dental families, according to the American Dental Association.

A survey by the National Endowment for Financial Education® found that:

• 88% of Americans said COVID-19 caused financial stress.

• Top sources of stress include:

  1. Lack of emergency savings

  2. Inability to fund retirement

  3. Difficulty paying bills

  4. Struggles with housing/utilities

  5. Inability to pay for medical/dental care

Additionally:

• 29% of full-time workers saw income reductions.

• 38% had employment changes, and

• 36% expected future impact.

Employees ranked financial well-being as more concerning than physical, mental, or social health.

“The coronavirus is clearly contributing to employees’ overall stress, especially financial.” – Todd Katz, EVP, MetLife

Why Stress Management Matters in Your Practice

The success of your practice depends on the well-being of your team—and that includes you. When each team member is functioning well, your practice will thrive.

Unmanaged stress affects physical, emotional, and mental health—and can ripple into your team, patients, and family. Especially in uncertain financial times, you must take proactive steps to care for yourself and your organization.

Managing Financial Stress: A 3-Part Strategy

1. Assess Where You Are Now

Take inventory of your financial health. At Jameson Management, we call these Critical Factors, such as:

• Production & collection (monthly, YTD, 3-month average)

• Adjustments

• Accounts receivable

• New patients

• Case acceptance rates

(There are 14 Critical Factors in total. Contact us to learn more.)

2. Define Where You Want to Go

Craft a clear, written vision of your ideal future—financially and professionally. What should your practice look like in 1, 5, or 10 years?

This will guide your decisions and goal setting.

3. Create a Plan of Action

• Build a budget—and stick to it.

• Learn overhead benchmarks and budget accordingly. Don’t guess.

• Prioritize debt:

  • List bills from smallest to largest.

  • Pay every month.

  • When one is paid off, apply that amount to the next.

  • Repeat until you’re debt-free.

Be honest with vendors. Communicate your intent to pay and follow through. They’ll respect your transparency.

Know your numbers:

• What are your monthly collections?

• What are your average expenses?

• What does it cost to keep your doors open?

This reveals whether you need to produce more, spend less, or raise fees.

For example:

• COVID-related infection control costs rose from ~$15 to ~$30 per patient.

• The ADA recommends raising fees across the board rather than adding separate fees.

Three Ways to Increase Profit:

1. Increase production

2. Decrease overhead

3. Increase fees

Do one, and you’ll see growth. Do all three, and your margins will rise significantly—and stress will decrease.

Goal Setting for Stress Control

Dr. Ken Blanchard suggests setting SMART goals:

• Specific

• Motivational

• Attainable

• Relevant

• Trackable

Less than 3% of people write goals and follow through—yet that 3% outperforms the other 97%. Be part of the 3%!

Write each goal clearly and positively. Then:

• Design a step-by-step action plan

• Assign responsibilities

• Set deadlines

• Track progress

• Celebrate milestones (big and small)

Benefits of goal setting include:

• 10%+ increase in productivity

• Up to 100% increase in income

• Better motivation and teamwork

• Less procrastination

• Improved time management

Warren Buffett’s 25/5 Rule: Write down your top 25 goals. Circle the top 5. Focus only on those—and let the rest go.

Reduce Debt and Make Smart Spending Choices

• Use the debt snowball method: Pay smallest to largest.

• Pre-pay principal on loans when possible to reduce interest.

• Avoid unnecessary purchases.

• Buy used, not new (especially cars).

• Never carry credit card debt. Pay it off each month.

12 Ways to Manage Stress and Re-energize Your Life

1. Focus on your mission and vision.

2. Write goals and follow your plan.

3. Communicate honestly and respectfully.

4. Be open with your family, including your children.

5. Exercise regularly.

6. Eat well.

7. Feed your mind with positivity.

8. Limit screen time.

9. Use relaxation techniques (meditation, yoga, prayer, hobbies).

10. Get at least 7 hours of sleep.

11. Organize your home, time, and systems—eliminate chaos.

12. Balance your life—work, play, love, worship.

“Optimism attracts people, success, and wealth like a magnet. It protects you from doubt and despair. It helps you turn adversity into opportunity.”

Choose optimism. Choose positivity. Catch yourself—and your team—doing things right. Encourage it. Reinforce it.

Let Go of What’s Not Working

Change is hard—but necessary. If a system isn’t working, let it go. Even small improvements across your practice systems can result in big changes—and reduced stress.

To Summarize…

Take stress seriously—especially financial stress. Create goals, develop a plan, and act. That’s how you gain clarity, direction, and control. And that’s how you move toward the healthy, fulfilling life and practice you deserve.

“Never, never, never give up.” – Winston Churchill

Read the Collect What You Produce 10-part series here