Everyone worries about money from time to time, but financial anxiety is different. Financial anxiety is an obsessive fear of things related to money that can often be debilitating.
Financial anxiety can be triggered by any number of things, not just a lack of money. Those who suffer from financial anxiety are continually worrying about bills and might be afraid to look at their bank account or cope with anything to do with personal finances. And like other forms of anxiety, financial anxiety is unhealthy. It can have an impact on your physical health causing insomnia, loss of appetite, or an inability to focus.
It’s only natural that financial hardship and loss of income will create worry. When that worry escalates to obsession, it can become a true anxiety disorder.
Watch for symptoms of financial anxiety
- Overspending: You would think that money worries would cause you to save your money, but shopping provides temporary relief from money anxieties. It becomes a vicious cycle where you keep spending to get relief, which makes the problem worse.
- Hoarding: Overspending can lead to hoarding; taking comfort in material items to relieve the anxiety from money challenges.
- Fear of spending: The other side of hoarding is being frugal beyond reason. Obsessive saving could prevent you from enjoying vacations or living in a comfortable home. It can also lead to avoiding home repairs and healthcare. People who overwork or work obsessively to earn more may also suffer from this type of anxiety.
- Uncontrollable finances: People with financial anxiety often are uncomfortable accumulating wealth. This can make it difficult to budget or prioritize household spending, and it can have a disastrous impact on retirement planning.
- Depression: Feeling depressed about the world around you can stem from a financial anxiety disorder.
- Obsessive behavior: Money anxiety can cause obsessive behavior as well, such as an inability to sleep or continually checking your online bank account.
These are just some of the symptoms, but there are ways you can tackle financial anxiety head-on.
Dealing with financial anxiety
Rather than remaining frozen in fear, consider ways you can alleviate financial stress and take control of your personal finances. Here are some suggestions to help you cope with financial anxiety:
- Schedule a money check-in: Set a financial goal for yourself to save a set amount by a specific date. Then start putting money aside.
- Create a household budget: Putting your income and expenses on paper will show you exactly where your money is going so you can take control of your spending.
- Manage your debt: Debt is one of the biggest factors that creates financial stress. Having a financial plan can help you avoid debt. If you are carrying debt, developing a strategy to pay it down will help put you in control of your debt.
- Create an emergency fund: Having an emergency fund can give you peace of mind because you know you have enough money set aside to pay your bills if you become sick or lose your job.
- Discard financial shame: Comparing your lifestyle or spending to others, especially on social media, only feeds money anxieties. Spending and accumulating wealth is not a contest.
- Practice mindfulness: How do you physically react to things associated with money? If your heart rate spikes, you begin perspiring or your mind starts racing. Try to relax with deep breathing exercises. You also can try to restructure your thinking by reminding yourself that there are things you cannot control.
Get help
With the help of 1st United Credit Union, you can take control of your finances. We have financial advisors and counselors available to help you. We also offer a wide range of financial tools that will make managing money easier. Here are some ways you can get started:
- Start with a savings account. No matter what your financial situation is, you can always find money to put aside. Saving can help you build your emergency fund as well as prepare you for retirement.
- Use online money management tools. These tools make it easier to set and keep goals, track spending, automate savings, and stick to a household budget.
The more you know about how to manage your money, the more control you will have over your finances. Feeling in control of your money will alleviate stress.
Talk to a 1st United service specialist about opening a checking account and setting up your online money management tools. Members can also get support from a professional financial counselor who can provide you with a personalized financial strategy. With a little help, you can better handle your finances and, hopefully, alleviate financial anxiety before it takes control of you.
FAQs
How to survive financial stress
- Stay active. Keep seeing your friends, keep your CV up to date, and try to keep paying the bills. ...
- Get advice. If you're going into debt, get advice on how to prioritise your debts. ...
- Do not drink too much alcohol. ...
- Do not give up your daily routine.
It may be that you have too much credit card debt, not enough income, or you overspend on unnecessary purchases when you feel stressed or anxious. Or perhaps, it's a combination of problems. Make a separate plan for each one.
Why am I so anxious about money all the time? ›
Anxiety about money frequently stems from the fear of not having enough to provide for these needs, the uncertainty of the future, or past experiences of financial instability, such as debt, job loss, or poverty. This anxiety can also be fueled by societal pressures to achieve a certain standard of living.
What not to say to a financially struggling person? ›
What Not To Say To Someone Struggling With Money
- "Stop Worrying About It So Much." ...
- "Hey, Let's Do [Thing That Involves Spending Money]! ...
- "Can You Really Afford To Do That?" ...
- "Too Bad Money Doesn't Grow On Trees!" Or Other Jokes. ...
- "It's Probably Good For You To Get Used To Being Poor."
Educate yourself on ways you can manage your financial stress through breathing exercises, working out, meditation, drinking lots of water, sleeping more, spending more time doing the things you love, and being with people who make you happy.
What to do if I'm struggling for money? ›
You can contact your local council - they might help you pay for things like:
- your energy and water bills.
- food.
- essential items - for example clothes or an oven.
Money dysmorphia is when your perception of your financial situation doesn't represent reality. It's a distorted view of your finances. For example, you might believe you're not doing well financially even though your finances are in great shape.
What mental illness causes overspending? ›
If you experience symptoms like mania or hypomania, you might spend more money or make impulsive financial decisions. You might have an addiction or dependency which makes you spend money.
How do you survive difficult financial times? ›
Ten Steps to Take During Difficult Financial Times
- Watch for and manage symptoms of stress. ...
- Pull together with family and friends for emotional support and share ideas about ways to save money. ...
- Review your budget and cut unnecessary expenses. ...
- Work on decreasing your debt as much as possible.
While the causes of money anxiety disorders vary, they are more common during times of economic uncertainty. These occur when there are changes in income and expenses, an increase in financial pressure, relationship issues around finances, or alongside a history of financial trauma or other mental health conditions.
How to Stop Worrying About Money
- Focus on the facts. My friend, mental health expert Dr. ...
- Make a plan. Your plan is everything from your monthly budget, to working a plan to get out of debt or save an emergency fund, to a long-term investment plan for your retirement. ...
- Be aware of your weaknesses.
Hebrews 13:5-6
We fail to see the blessing in everything we already have. In Hebrews 13, Paul reminds us to “keep our lives free from the love of money, and be content with what you have.” No matter how big your dreams are, remember to be content now.
How do I stop being struggling financially? ›
In this article:
- Identify the problem.
- Make a budget to help you resolve your financial problems.
- Lower your expenses.
- Pay in cash.
- Stop taking on debt to avoid aggravating your financial problems.
- Avoid buying new.
- Meet with your advisor to discuss your financial problems.
- Increase your income.
Tips for Coping
- Create extra sources of income. If you're feeling stressed about finances, you likely already feel you need more money in your budget. ...
- Declutter your budget. ...
- Don't forget general stress management. ...
- Understand the debt cycle.
Tips to Take a Stand Against Financially Irresponsibility
- Mutually review how much money you've already lent or gifted. ...
- You can assist without enabling. ...
- Insist on seeing the borrower's budget for how they'll pay current bills and manage future emergencies. ...
- Avoid loans if you can.
These Are the Best Jobs for People With Social Anxiety Disorder
- Writer. Writing is a dream job for many. ...
- Artist. An artist is another job that might be appealing if you live with social anxiety. ...
- Animal Care or Training. ...
- Accountant. ...
- Landscaper. ...
- Entrepreneur. ...
- Computer Programmer. ...
- Counselor.
How to get through a personal financial crisis
- Minimize the damage. ...
- Document the damage. ...
- Cut back on expenses. ...
- Use other people's money before your own. ...
- Assess your savings. ...
- Examine your bills closely. ...
- Develop a new budget that focuses on financial recovery. ...
- What caused the biggest financial impact?
SHARE:
- Prioritize what you can control on discretionary spending.
- Find ways to earn more money.
- Pay essential bills.
- Save money during trying times.
- Track your money-saving progress.
- Talk to your lenders.
- Consult with an expert financial advisor.
Create an emergency fund: Having an emergency fund can give you peace of mind because you know you have enough money set aside to pay your bills if you become sick or lose your job. Discard financial shame: Comparing your lifestyle or spending to others, especially on social media, only feeds money anxieties.
