How To Deal With Financial Anxiety

Financial anxiety can affect any income level. Someone in a lower income bracket may experience financial stress because they’re not sure how they’re going to put food on the table for their family. Whereas a person in a more middle-income bracket can experience the same level of stress worrying about how they’re going to pay for their child’s college education.

Very different circumstances, but both cause similar levels of financial anxiety. This holds true for those in higher income brackets as well. Although their concerns typically aren’t nearly as dire as providing food for their family, they can still experience the same financial stress as those with more pressing survival worries.

One of the main signs that someone might be battling financial anxiety is avoidance. They might have financial pressure but aren’t doing anything about it. The bills arrive only to go in the drawer unopened, or the emails are ignored. Avoidance is a common reaction to financial anxiety, but it often makes things worse. When a bill goes unpaid today, tomorrow and the day after, that spiral can lead to compounding financial problems and hence more anxiety.

Ketut Subiyanto/ Pexels | The more your money works for you, the less you have to work for money

Something as innocent as a financial misunderstanding can create stress and anxiety as well. Sometimes it can be something mildly embarrassing like having your card declined at a store or restaurant. Other times it could be something more awkward like a friend or family member asking you for a loan. Either way, these little misunderstandings can create financial stress as well, which can affect your mental health. Here are a few pointers to help you deal with this anxiety:

Make a plan

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What is it about your finances that gives you anxiety? Is it a lack of income? Too much debt? Or maybe you’re secure now but you’re worried about your future? Identify what you’re worried about and layout a plan. Sometimes having a plan in place can help to lessen your anxiety.

Add relaxation techniques to your routine

Breathing exercises, meditation or yoga can be beneficial for many people. YouTube is a good source for yoga and meditation instruction. And it helps to try and think positively, there are a lot of things we can still do to relax and reset, even with COVID-19 restrictions.

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Learn more about finance

Whether it’s a book, a podcast, or a lecture series, learning more about how money works can never hurt. It’s funny, the one thing not taught in school is the one thing every person has to deal with on a daily basis, personal finance. It stands to reason as much as we interact with money on a daily basis, we could use all the knowledge we can get to help us thrive in our financial situation. And the more you know and understand about finances, the more control you feel leads to less financial anxiety.