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
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.
How to stop anxiety around money? ›
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.
Why does money make me so anxious? ›
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.
What is the root of money anxiety? ›
There are many potential causes of financial anxiety, though they are typically related to existing money troubles or a history of uncertainty around finances. This can include: Growing up in poverty, or in a household where money was often scarce.
How to stop obsessing over finances? ›
Focus on nurturing self-care and prioritizing your health. 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 is money dysmorphia? ›
Money dysmorphia is a psychological condition where individuals have distorted perceptions of their financial status, often leading to unhealthy behaviors and attitudes toward money.
Why is money stressing me out? ›
These are some common ways money can affect your mental health: Certain situations might trigger feelings of anxiety and panic, like opening envelopes or attending a benefits assessment. Worrying about money can lead to sleep problems. You might not be able to afford the things you need to stay well.
What is financial trauma? ›
Financial trauma refers to the distress associated with chronic money-related stress, lack of resources, or financial abuse. These difficulties can overwhelm the ability to cope with stress, thus leaving many stuck in a state of heightened anxiety, fear, or anger.
How to cope with financial stress? ›
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.
One big culprit fueling financial anxiety is a familiar one — the high cost of living. More than half of respondents (54%) expect price pressures to increase this year, and only 9% said their household income was outpacing inflation.
Stress related to economic change is normal. A recent survey conducted by the American Psychological Association indicates that as many as 8 out of 10 Americans are stressed because of money concerns.
Is money depression a thing? ›
Our mental health might be affected by money problems in different ways, for instance: stress, worry or anxiety because we do not have enough money (financial anxiety) a low mood or feeling depressed about money. lower self-esteem, or feelings of guilt or shame if we're not earning enough or currently unemployed.
Why am I always struggling financially? ›
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.
What is the 50 30 20 rule? ›
The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).
Why can't I stop worrying about money? ›
Financial stress is a common struggle for many people. It can affect your mental and physical well-being and impact your overall quality of life. Money worries can come from different sources, including unexpected expenses, a sudden job loss or feeling unprepared for the future.
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.
Beyond general worries around your bank account, an extreme fear of spending money can sometimes be linked to some mental health concerns. For example, having extremely rigid control over your finances is sometimes linked to obsessive-compulsive personality disorder (OCPD for short).
Why am I so afraid of money? ›
A fear of money can be caused by many things, including a lack of financial education, past financial trauma, and negative money messages you learned as a child. The first step in addressing your fear is reflecting on the root cause, either alone or with the help of a financial therapist.
How do I stop being emotional about money? ›
Making time to have a conversation with a banker or financial advisor to understand your finances is critical to managing your emotions about money. Don't be afraid to ask questions – learning is the first step to becoming financially confident.
How to retrain your brain to be less anxious about money? ›
Shifting to an “abundant” mindset starts with intentionally changing the thoughts and beliefs that shape your world view. It starts with questioning and unlearning the thoughts of scarcity. As you do this, you'll start to notice subtle changes in your reactions and decisions. Maybe you feel less scared to invest.
