Do you feel stress and anxiety over money? Do you dread logging in to check your account balances or credit statements? If you do, then you are definitely not alone. According to the American Psychological Association’s survey Stress in America, over 72% of Americans reported feeling stressed about money at least once during the prior month.
Financial problems can take a huge toll on your health and well being. Chronic stress causes a number of health problems from diabetes and high blood pressure, to heart disease and even obesity. Money problems are especially stressful when you fear there won’t be enough of it for the future. Maybe you’re disappointed in your own actions or wish that you’d made different choices in the past. However no matter how hopeless the situation might seem, it is possible to turn over a new financial leaf.
Stress and anxiety over money can have a compound effect and lead to a vicious cycle that looks something like this:
- Money stress negatively affects your mental health. The stress of financial worries leads to a depressed state, fatigue, and anxiety. These mounting conditions lead to overall poor mental health.
- Poor mental health then leads to poor money management, leading to additional money stress. You might find it more difficult to concentrate or dive into paying that list of bills. Or you might lose income by having to take time off work. This loss of income in turn leads to more money stress. And the cycle continues.
No matter how desperate your financial situation might feel, there is a way to make it better. It is possible to start a new financial chapter. Here are a few tips to help you deal with stress and anxiety over money.
How to Reduce Stress and Anxiety Over Money
- Talk to someone
When stress and anxiety over money overwhelms you, it’s easy to clam up and try to go it alone. Many people also consider money a taboo subject and are hesitant to discuss money problems. You might feel regret over financial mistakes you have made, or shame for what you perceive as not being able to manage your money well. Bottling up anxiety and stress over money will only make your stress worse. In today’s economic climate, you are not alone in your financial worries and you will likely find someone who can relate.
Speaking face to face with a friend or trusted loved one will not only provide a means of stress relief, but the act of speaking your problems out loud will likely help you put things in perspective. Above all, this person must respect your confidence. They must agree to keep all details of your conversation to themselves unless you give them permission to share. This person need not offer you financial advice – in fact, it’s sometimes better if they don’t offer any advice at all. The most important part of this exercise is that they listen with empathy and without judgement. The point is to realize that you are not alone.
- Get and Stay Current
Take inventory of your finances, no matter how difficult this might seem. This activity might be challenging but facing your situation openly and honestly will give you power over your anxiety. If you’ve been avoiding checking your account balances or paying bills, it’s easy to feel overwhelmed, but this situation will only get worse the more you ignore it.
A simple step in the right direction is to list out the following:
- All monthly bills and outstanding debt
- Monthly income
- At least a month’s worth of spending so you can identify your spending patterns and triggers.
Some financial worries are harder to solve than others, but simply by listing everything out on paper (or electronically) will help you to gain a clearer picture of your financial situation. You can decide to start fresh whenever you want. Each day is a new beginning. As difficult as this may seem at first, tracking your finances will give you a powerful sense of control over your situation.
Get a handle on the amount of money you need to cover your monthly bills in relation to your monthly income. Then you can make a plan to tackle any outstanding debts. A month’s worth of spending will give you an idea of your financial habits and spending patterns. You can also identify any emotional triggers that might lead you to any irrational spending.
- Cut Expenses
This might seem obvious, but cutting expenses is the start of improving your financial situation. Once you’ve established your financial habits and patterns in your spending, you can begin to make a plan to trim any unnecessary expenses. So much of money management is emotional and behavioral. Understanding and mastering your behavior is a key component to improving your financial situation and ultimately reducing your stress and anxiety over money.
Identifying negative spending patterns is key to improving your financial situation. If you don’t know why you’re spending so much, it will be impossible to make a difference in your money. Sometimes a financial trigger can be something as simple as boredom or worry. Breaking the cycle of spending is key to relieving financial stress and anxiety.
- Extra Income
It’s difficult to deal with stress and anxiety over money if you don’t have enough money coming in. After you’ve cut your expenses and have assessed how much you spend on a monthly basis, you can make a plan to address any outstanding debts. Adding in additional streams of income can go a long way in easing financial stress. Once you have some additional income coming in, you can start to chunk this income toward actually improving your financial situation.
- Focus on the Positive
Though it might sound simple, using positive words and body language can make a difference in your overall stress level. Stress and anxiety over money can make you project into the worst case scenario future. It’s easy to imagine a future where all the negative situations you imagine have come to pass. To combat stress and anxiety over money, remember that the future has not come to pass yet. Right now, you are here in the present moment and you have the power to make positive changes in your life.
The Bottom Line
Worrying about money won’t magically make more money appear in your account. Reach out for help, get and stay current on your finances, then identify your spending triggers. Cut expenses where you can and try to bring in some extra income. Take care of yourself and relax into a positive attitude. Taking concrete steps to improve your financial situation will go a long way toward easing your stress long term.
Thank you for this article Christianna. 🙂