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Mar 26, 2024 · The first step in addressing your fear is reflecting on the root cause, either alone or with the help of a financial therapist. Steps to overcome your fear of money and get ahead with your ...
Aug 30, 2023 · Tips for overcoming a scarcity mindset. Track your finances: As with most financial matters, tracking your finances and creating a budget that outlines your income, expenses and savings goals is an important way to create a realistic picture of your financial situation. Appreciate what you do have: Experts suggest taking a moment each day to ...
Mar 12, 2024 · 6. Avoidant behaviors. A common effect of money anxiety is the avoidance of financial responsibilities, such as not checking bank accounts, ignoring bills, or delaying financial planning. While this may provide short-term relief from anxiety, it ultimately leads to greater financial problems and stress.
- Overview
- What are the signs?
- Where does it come from?
- How can money anxiety affect you?
- How to handle it
- Getting professional help
- The bottom line
If you’ve found yourself worrying about money lately, you definitely have company. Money anxiety, also called financial anxiety, has become more common than ever.
In the American Psychological Association’s 2022 Stress in America Survey, 87 percent of people who responded listed inflation as a source of significant stress. The rise in prices for everything from fuel to food has people from all backgrounds worried. The researchers say, in fact, that no other issue has caused this much stress since the survey began in 2007.
When money and financial concerns cause ongoing stress in your life, you could eventually begin to experience some feelings of anxiety as a result. This anxiety can, in turn, have a negative impact on your quality of life.
You can’t always fix the state of your bank account as you might like and eliminate the stress directly. But you can take steps to manage money-related anxiety.
Money anxiety, in basic terms, happens when you worry about your income or fear something bad could happen with your finances. To put it another way, it’s an emotional response to your financial situation.
But money anxiety doesn’t necessarily mean you have no money at all. You could make an income you consider perfectly decent and still fret about your mortgage, or worry about losing all your savings to an unexpected medical bill or other major expense.
Maybe you pay all your current bills easily, but you still can’t push down the uneasy feeling that you should be saving more for your retirement.
A few signs your anxiety around money is becoming a more serious concern:
•Aches and pains. Perhaps you get a headache or upset stomach when you look at your bank account.
•Avoidance. Your bills might remain on the countertop for weeks because you can’t bring yourself to go through them.
A history of deprivation
Poverty can be traumatic. If you’ve ever gone without food or housing, it goes without saying that you might feel protective of your financial resources. You may go to extreme lengths to save cash, just in case you need it later. When you do experience financial setbacks, your mind might latch onto a worst-case scenario more easily, since you’ve already lived through one. This trauma can span generations. If your parents lived in poverty, they may stress the importance of earning and saving money. They might set heavy expectations on your shoulders to reach a certain level of wealth for your family’s sake.
Low or unsteady income
You’re more likely to worry about money if you don’t have much of it, since lower income leaves you more vulnerable to disruptions. If you live paycheck to paycheck, you probably don’t have a savings account or home equity to fall back on in emergencies. A small delay in payment might keep you from buying dinner the last few nights of the month, or putting enough gas in your car to get to work — which, of course, would only set you back further. Example Working in the gig economy can worsen your stress, suggests 2022 research. Gigs aren’t known for their stability. Your boss may have you work 30 hours one week and only 20 hours the next week, or cut your hours in half without warning. This unstable cash flow can make it practically impossible to predict how much money you’ll have at any given time.
Rising expenses
In many places, living has gotten much more expensive, and for many people, wages aren’t keeping up. That’s part of the reason inflation causes stress: The money you thought was enough to meet your needs no longer has the purchasing power it once did. As the ground beneath you shifts, you may wonder how you’ll keep up with future changes. Another key finding from the 2022 Stress in America survey mentioned above: Half of Americans listed housing costs as a major stressor. Housing has become an especially worrisome expense for several reasons, according to 2022 Pew Research Center findings: •More people want to buy homes due to low mortgage interest rates. •Fewer houses are being built. •Large companies and private equity firms have reportedly bought 15 percent of available homes as investments, mostly in low-income neighborhoods. All of these factors can drive up the prices of housing. And when homes become more expensive, so does rent. According to Pew Research Center: •Among American renters, 46 percent are “cost-burdened,” meaning they spend at least 30 percent of their income on housing. •Around 23 percent of American renters spend at least half their income on rent.
Family conflict
Anxiety can often leave you feeling irritable or resentful. When you’re worried about paying the bills, you may find yourself in frequent arguments with loved ones who don’t seem to take the situation as seriously as you do. Conflict can become even more likely if you and your family avoid talking about money until you absolutely have to.
Sleep deprivation
Money anxiety can easily get in the way of restful sleep. Worries about bills, unplanned expenses, or other financial concerns can keep you awake long past your bedtime. Consequently, when morning comes, you might find it even more difficult to get up and face the day. Over time, insufficient sleep can have a major impact on your health, memory, and mood. It can also increase your risk of developing health concerns like: •heart disease •high blood pressure •diabetes •worsened anxiety •depression
Gambling
Sometimes your debts and expenses can seem too steep a mountain to conquer through typical methods. You might find yourself considering gambling as an option for getting the money you need since a tiny hope might seem better than no hope. But gambling may not help the situation, and the combination of gambling and anxiety could make matters worse. According to a 2016 study exploring the connection between anxiety symptoms and gambling behavior, participants with more severe anxiety symptoms tended to meet more of the criteria for gambling disorder.
Blow off some steam
It’s hard to (accurately) calculate income and expenses when your mind is racing a mile a minute. If you’re finding it tough to focus, try a 10-minute break to ground yourself and improve your mood and focus: •Take a walk around the block or do jumping jacks. •Listen to music. •Try some breathing exercises. •Try a short meditation. Once your mood is back to baseline, you might find it easier to consider your bank statements with a clear head.
Make a budget
A budget can help you plan where your money will go each month. Instead of crossing your fingers and hoping you don’t accidentally spend too much on groceries, you can set a firm limit to stay under while you shop. According to a 2022 study, planning was the most effective strategy workers used for reducing money-related stress.
Read the fine print
Financial contracts can sometimes feel a little intimidating, especially if you don’t have a background in business. Brushing up on your financial jargon can make money decisions feel less daunting. You can also hire a guide, like an investor or financial coach, to help explain confusing language and show you the lay of the land, in a manner of speaking.
When money anxiety causes lasting distress and begins to intrude on your daily life, support from a mental health professional could make a difference.
Even if you have a tight budget, you still have options for affordable therapy. Many therapists offer sliding scale fees, for example, so people who can’t otherwise afford therapy can still access support.
Plenty of people are worried about money these days. However common they might be, these lingering feelings of money anxiety can leave you overwhelmed, to say the very least. Over time, they could also contribute to serious mental health concerns, including depression and chronic anxiety.
It can take time to resolve long-standing financial challenges, but you don’t have to navigate your fears and worries alone. A financial counselor can offer more guidance with the numbers, while a therapist can support you in finding helpful self-care strategies and techniques to manage anxiety and stress.
- Emily Swaim
Jul 31, 2023 · Step #2: Explore Thought Patterns. Next, grab a pen and a piece of paper. Write down what you’re worried about. When you become aware of your own thought patterns, you start to catch them in the act. A powerful way to increase awareness of how you worry is through writing down your thoughts.
Oct 11, 2023 · Or you can use a budgeting app to automate the process. 6. Build an emergency fund. One of the best ways to reduce financial stress is to build up a short-term cash reserve, commonly known as an emergency fund. An emergency fund can help relieve some stress, as it prepares you for unexpected expenses.
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Sep 19, 2024 · Knowledge as the Cornerstone of Financial Confidence. In conclusion, beating your fear of money starts with knowledge. The more you learn about your finances, the more empowered you become to make informed decisions. By building healthy habits, staying informed, and seeking help when necessary, you’ll not only overcome your fears but also ...
