If money worries are weighing heavily on your mind, you’re not alone. Everyone experiences money woes from time to time – it’s a normal part of life. But what if you’re so worried about your finances that you can’t sleep? What if your money troubles are making it difficult to concentrate or carry out everyday tasks?
Perhaps a medical emergency has drained your bank account, or you lost your job. Whatever the case, there are things you can do to stop stressing over your financial situation. In the paragraphs below, we’ll show you several ways to overcome financial anxiety and develop a better relationship with money.
1. Seek Help
Anxiety occurs when we lack confidence in handling certain situations. Financial anxiety is common because many of us were never taught how to manage money effectively. If your financial situation has you in a near-constant state of panic, talking to a financial expert or online tax agent near you is a solid strategy.
A finance professional will be able to help you come up with a plan to manage your money woes, and having a plan is the best way to put your mind at ease. To deal with the emotional aspect that almost always accompanies financial worries, you may also wish to consider talking to a mental health professional.
2. Set Goals
Setting goals gives you a plan of attack. Whether it’s saving for retirement or an upcoming vacation, having a clear savings plan for the things you want will give you confidence. You’ll know what to expect, and you’ll achieve your goals quickly if you have clear milestones to work through.
3. Start an Emergency Fund
You don’t have to commit to putting a lot of money into your emergency fund at once. Start with whatever you can afford, and plan to add to this account with each paycheck – even if it’s only five dollars. With an emergency fund to fall back on, surprise expenses like car repairs or medical bills won’t be such a big deal, and you won’t worry about where the money is coming from to pay for them.
4. Track Your Spending and Create a Budget
Understanding how much you spend and where your money goes can help you get a handle on your finances. Track your spending for a full month, documenting every penny that comes in and goes out. This will let you know exactly where your money goes and help you identify expenditures that aren’t always necessary and are taking away from important expenses.
Once you’ve figured out where your money goes, create a budget, and stick to it. Be sure to factor in contributions to that emergency fund, so you’ll experience less financial anxiety.
5. Consider the Worst-Case Scenario
Financial strife isn’t life-threatening, but stressing about it constantly can be. Stress isn’t good for your body, so you need to find ways to lower your financial anxiety. One such way is a form of exposure therapy where you imagine the worst-case scenario.
For example, what would happen if you lost your job? Maybe you’d need to move back in with your parents until you found your feet. Would it be uncomfortable? Yes. Would it kill you? No.
When you consider the worst possible thing that could happen because of your money woes, you begin to see that it’s not the end of the world and that you do have options for remedying your situation.
The takeaway here is that you’re not alone in your financial struggles. Everyone worries about money at some point, but remembering that you have options is the key to dealing with your financial anxiety.
