Tips for Financial Anxiety
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Understanding financial anxiety is often the first step in starting to overcome panic and worry over your finances.
Let's go through some tips. |
1) Make a Plan
The first step to taking control is to make a plan. Schedule regular check-ins; a "money date" with yourself to determine where you are financially and where your stepping stones are to small, attainable goals.
Planning can be as simple as creating a budget and each month reviewing and adjusting your budget. This is not a time to be hard on yourself, you are simply gathering facts.
The first step to taking control is to make a plan. Schedule regular check-ins; a "money date" with yourself to determine where you are financially and where your stepping stones are to small, attainable goals.
Planning can be as simple as creating a budget and each month reviewing and adjusting your budget. This is not a time to be hard on yourself, you are simply gathering facts.
2) Acknowledge Anxiety
What about your finances causes anxiety? The first step is to acknowledge what is causing the stress. Avoidance is a common reaction to anxiety. But taking small steps to understand your finances can help get over the first hurdle of nerves.
Understand you are not alone. There are times it feels like you are being judged or that you are alone in dealing with your finances. Understand that you are not alone.
77% of Americans feel at least somewhat anxious about their financial situation. (CNBC, 2020)
What about your finances causes anxiety? The first step is to acknowledge what is causing the stress. Avoidance is a common reaction to anxiety. But taking small steps to understand your finances can help get over the first hurdle of nerves.
Understand you are not alone. There are times it feels like you are being judged or that you are alone in dealing with your finances. Understand that you are not alone.
77% of Americans feel at least somewhat anxious about their financial situation. (CNBC, 2020)
3) Pinpoint Something Positive
In trying to overcome anxiety, a key step is to believe you can actually overcome the problem. Negative thoughts and ideas can drag you down, instead, try and focus on one positive aspect and try and grow from there.
Positives can be something small like paying your credit card payment on time, or larger like hitting a savings goal.
In trying to overcome anxiety, a key step is to believe you can actually overcome the problem. Negative thoughts and ideas can drag you down, instead, try and focus on one positive aspect and try and grow from there.
Positives can be something small like paying your credit card payment on time, or larger like hitting a savings goal.
4. Avoid Catastrophic Thinking
Start paying attention to your emotions and how your body reacts when you discuss money or make financial decisions. How do you feel when you check account balances online?
When you notice yourself starting to panic, look at your goals or your positive changes. Maybe you were able to save something extra this month, or a monthly bill decreased. Small positives can help when you start thinking negatively.
Start paying attention to your emotions and how your body reacts when you discuss money or make financial decisions. How do you feel when you check account balances online?
When you notice yourself starting to panic, look at your goals or your positive changes. Maybe you were able to save something extra this month, or a monthly bill decreased. Small positives can help when you start thinking negatively.
5. Stop Comparing Yourself
There are billions of people online who make money look "easy". Comparing yourself, and your finances, to others' can cause unnecessary stress.
Here are a few things to remember:
-You do not know what's in their bank account. Having money and spending money are different. Someone's success might be built on credit cards and debt.
-Your experiences are unique. Everyone has different expenses. Some might not have student loan debt, or have family commitments. Remember, you never know fully how other people spend their money.
-The only person you can change is yourself. Instead of gauging success by others around, create your own measurement, to feel more in control of your money. Create a budget, have set goals, and understand that everyone's life and financial journey are different.
There are billions of people online who make money look "easy". Comparing yourself, and your finances, to others' can cause unnecessary stress.
Here are a few things to remember:
-You do not know what's in their bank account. Having money and spending money are different. Someone's success might be built on credit cards and debt.
-Your experiences are unique. Everyone has different expenses. Some might not have student loan debt, or have family commitments. Remember, you never know fully how other people spend their money.
-The only person you can change is yourself. Instead of gauging success by others around, create your own measurement, to feel more in control of your money. Create a budget, have set goals, and understand that everyone's life and financial journey are different.
6. Retool Your Budget
Your budget is not set in stone. It is a document that can change monthly, seasonally, or randomly. --Not comforting, right? There are a lot of variables when working in the service industry, gig industry, or even in part-time work as hours fluctuate.
The 5 Components of Financial Literacy page discusses a 50/30/20 budget. There are some categories that do not change, rent, transportation, etc. Plan on these, and retool your budget in the "wants" category. Understand that events come up and there are times you might need to review your finances to make sure you stay on track.
Your budget is not set in stone. It is a document that can change monthly, seasonally, or randomly. --Not comforting, right? There are a lot of variables when working in the service industry, gig industry, or even in part-time work as hours fluctuate.
The 5 Components of Financial Literacy page discusses a 50/30/20 budget. There are some categories that do not change, rent, transportation, etc. Plan on these, and retool your budget in the "wants" category. Understand that events come up and there are times you might need to review your finances to make sure you stay on track.
7. Ask for Help
Once you have an idea of how much money you make in a month, your expenses, and have a rough budget in place, it might be time to find an expert.
This could be someone at your bank, a relative or friend, or help from an online budgeting tool or financial group. There is no "right" answer. Find the tool or person that works best for you. Explain your situation, and take notes of what steps you can take.
Once you have an idea of how much money you make in a month, your expenses, and have a rough budget in place, it might be time to find an expert.
This could be someone at your bank, a relative or friend, or help from an online budgeting tool or financial group. There is no "right" answer. Find the tool or person that works best for you. Explain your situation, and take notes of what steps you can take.
