4 Tips for Managing Financial Anxiety

4 Tips for Managing Financial Anxiety

4 Tips for Managing Financial Anxiety

Woman looking at a piggy bank.

Finances are often a major cause of concern for some individuals. In fact, a 2018 study found that 53% of Americans felt anxious when thinking about their finances, and 44% felt that discussing their finances was stressful. Personal finances can be a constant battle that can bring a lot of uncertainty. This sense of uneasiness can lead to a decline in mental and physical health. Those who experience anxiety with finances can suffer from poor sleep habits, strained relationships, or even a loss of appetite. Furthermore, mental health issues may arise such as depression or anxiety disorders. There are steps that can be taken to minimize any anxieties that may be faced when managing money.

Manage Debts

Debt can be a very common stressor for those who have financial anxiety. Debt is often seen as a never-ending problem that continues to bring an unwanted feeling of helplessness. For those who are struggling with managing debt, it’s important to be organized and to stay on track. Start by writing down all of the money owed and information such as the interest rate associated with each debt and minimum monthly payment needed. Figuring out the minimum monthly payment will also allow you to create a budget that works best for you and your situation.

Once the information is organized and a spending plan is in place, other small changes can be made. Consider ditching credit cards and opt for cash only. While credit cards can be helpful in emergency situations, it can be an easy way to get into deeper trouble for those who struggle with debt. The envelope budgeting system is a simple way to stick to your budget and make a difference with your personal finances. It’s also helpful to visualize your budget and spending plan. Additionally, getting a second job can help bring in some extra income to help manage your finances. Knowing that you’re taking strides to minimize debt will help ease the feeling of anxiety that comes along with it. Take small steps today to minimize debt and get your personal finances back under your control.

Set Goals

When dealing with financial anxiety, it’s crucial to have goals to work toward. Setting goals can allow you to see the bigger picture and give you more confidence when dealing with your personal finances. There are a variety of different financial goals that can be set. This can include home ownership, saving for education, or creating a stable emergency fund. If your goal is to own a home in the future, understanding how much house you can afford can help minimize feelings of uncertainty. Creating a budget and having a greater understanding of what needs to be done to achieve this goal will help you feel more confident in your finances. If your goal is to save for your child’s education, look into a 529 plan to help you get started. While this plan differs from state to state, it’s a great way to save for future education expenses. The earlier you start saving, the sooner you’ll see results. For those who struggle with anxiety, having something to work toward will help you stay focused and engaged on your journey.

Ask for Help

Money and mental health go hand in hand. If you’re having financial issues, this can feel very isolating. For many, feelings of shame or embarrassment regarding finances keep them from reaching out for help. Asking for help is never a sign of weakness when it comes to managing stress. This can allow you to talk through your feelings as well as receive expert advice. Financial professionals can help you create a plan and give you guidance as you work through your financial problems. It’s important to note that there are different types of financial professionals. These professionals all have different areas of expertise. This can include getting out of debt, increasing savings, or even day to day spending habits. By having a financial professional on your side, they can help put your anxiety at ease and put you on a path for success. Utilizing a financial professional will help you feel less alone during the difficult times. Getting an outside opinion and advice can help you overcome any issues you may be experiencing. 

Be Mindful

Practicing mindfulness can be a great way to decrease financial anxiety. By being mindful, you can be extra aware of your thoughts and feelings regarding personal finances. Start by taking note of how you react to all things money. Physical reactions such as an increase in heart rate or feeling nauseous are often experienced by people dealing with financial anxiety. To combat these debilitating symptoms, consider utilizing a journal or doing yoga to help ease your mind. Journaling is a great way to relieve stress as well as check in with yourself and your progress. There are plenty of journal prompts related to financial wellness to help you get started. Another way to practice mindfulness is yoga. While the benefits of yoga are undeniable, it can be a great resource for those who struggle with financial anxiety. Taking time out of your day to relax and de-stress will allow you to clear your head and feel more in control. Improving how you react to money matters will lead to a better relationship with personal finances.

    Financial anxiety is a prevalent issue across the country. It’s easy to feel overwhelmed and stressed when trying to deal with financial issues. Managing debt and setting goals will help give you something to work toward. Small steps can bring about changes that can put you on the right path. Asking for help and being mindful will help you feel less alone and allow for a shift in mindset regarding money.