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If you ask someone about money, chances are it can cause a certain response. A tight chest, rapid breathing, or even a slight panic. Money is one of those things that is often hard to talk about - namely because of the amount of anxiety that’s rooted in the subject.
According to sources, financial anxiety is the extensive worry about paying bills, saving money, and really anything that is related to money or money management that is anxiety-inducing or causes a fear-like response.
It’s hard to pinpoint one specific root cause of financial anxiety. There are many factors that can come into play. Perhaps you were never truly educated from an early age about the values of financial discipline. Maybe you never had a good example to learn from growing up with your parents about how to properly handle and manage money. Other factors can include having mental illnesses such as Bipolar Disorder, which can be characterized by manic episodes of impulsive decisions and behaviors - many of which can include spending money.
The Dangers of Financial Anxiety
Let’s face it, money can be intimidating. Especially if you grew up in an environment where money was either always an issue, or perhaps even no issue at all (more on that later). For many, the idea of money management can be fearful and anxiety-inducing. Financial worry can contribute to stress, loss of sleep, low self-esteem, and impact energy levels, according to research.
If left unchecked, money and financial anxiety can lead not just to a poor mental health state, but poor decisions. People can turn to drinking, gambling, drugs, or even suicide, depending on how dire the situation is. Money anxiety can affect relationships, too. One of the biggest reasons for divorce is over money-related issues, according to sources. Needless to say, it is important to figure out just how to address these issues head-on.
Steps to Overcoming Financial Anxiety
Thankfully, financial anxiety is a fixable issue. There are several key steps you can take to help make progress towards solving your financial anxiety, and they can all start today; right here, right now. Here are some key ways to begin your healing journey from financial anxiety:
- Talk to someone - This can mean speaking to a friend, loved one, counselor, pastor, or any other figure who can offer guidance and support. It is important to be vulnerable and open to feedback from others who may have knowledge and wisdom to offer you during this trying time.
- Get professional advice from a trusted financial advisor - Speaking to a financial advisor, a tax professional, or some other qualified financial expert can help give you a road map moving forward.
- Create a budget - This is one of the most important steps. Reports show that budgeting is a great way to track how much you earn, and how much you spend. By having control, knowledge, and a more robust awareness about where your money is coming from and where it’s going, you can begin to get your financial power back on track and regain control over your financial anxiety.
- Systematically pay down your debts - This can be a great way to start rebuilding confidence and really paying down the different debts you have. The debt snowball method is a popular choice for many reasons, and may be a good place to start.
- Eliminate impulse spending - We get it. That extra pair of headphones, the quick coffee stop at the gas station or Starbucks, and the extra few bars of chocolate are all so tempting at times. However, if you want to gain quicker release from financial anxiety, resisting those urges to spend money on frivolous things can be a great step in the right direction. Remember, if you want to buy it from somewhere for a few dollars, chances are you can make it for much cheaper at home - and enjoy a much higher quality!
- Identify spending habits and triggers - A budget will greatly help you do this. By identifying what you tend to spend money on the most, you can begin to see what is absolutely necessary in your life and what isn’t. For example, do you absolutely need that Netflix subscription? Or, can you live without those extra snacks from the grocery store that don’t offer any real nutritional value? These are all points to consider when examining your spending habits.
- Build a healthy lifestyle - The way we take care of ourselves physically and mentally can greatly impact our financial life. Fast food, not exercising, and practicing unhealthy habits like drinking too much alcohol, abusing substances, and smoking can all contribute to not just general anxiety, but financial as well. If you don’t believe us, go look at how much one pack of cigarettes costs at the convenience store. Trust me, your wallet and your peace of mind will thank you for kicking that habit.
- Talk to a Therapist - Sometimes, financial anxiety doesn’t stem from a real issue you can solve with budgeting or cutting spending habits. Ingrained cognitive distortions and preexisting anxiety disorders can trigger financial stress even when your finances are in order. Talking to a therapist can help you address unhealthy thinking patterns, build a strong support system, learn healthier coping mechanisms, and address the root cause of your financial anxiety.
Some ways are practical, and some ways are more behavior-based. For example, creating a budget can be a practical way to regain control over your money management. Other means of overcoming financial anxiety are more intangible, such as talking to a loved one, a friend, or a professional therapist.
Financial anxiety can have many causes. However, that does not mean that it has the right to control you or your mental well-being. Call Lifebulb today at 855-722-4422, option 1, to speak to a scheduling specialist to help you find the care and support you need.
