Worrying about money is a common stress factor that can affect every part of life, from your daily routine to your long term aspirations. Being under financial stress can significantly affect your mental and physical health, whether it is the anxiety of paying bills, saving for the future or dealing with unexpected expenses. This guide is here to help you stop worrying about money and start living. Our practical tips will help alleviate your money anxiety and, hopefully, improve your financial wellbeing in the long run.
Why Do I Worry About Money?
Worrying about money or experiencing general financial anxiety can be due to a number of reasons, such as a history of financial instability, fear of not having enough money, job loss or simply the stress of managing daily expenses on a tight budget. The effects of being anxious about money can deeply impact your mental health, leading to stress and anxiety disorders. It is important to recognise the causes of money anxiety in order to learn how to manage and overcome these fears effectively.
Here are four tips to help you stop stressing about money so you can improve your money mindset.
Review Your Finances in Full
It is essential to do a full review of your financial situation so you can start addressing your financial worries head-on. Schedule regular money check-ins in your diary and take a closer look into your bank account and spending habits. Consider the aspects of your financial management that are working well and think about where there might be room for improvement. Are you ignoring bills until it is too late or perhaps experiencing fear of spending money even when necessary? Be honest with yourself about what is causing your stress and that will help you develop a clear picture of where you stand financially.
Make a Realistic Plan
Once you have identified your financial stress factors, it is time to set your financial goals and create a realistic plan to meet them. If your income varies every month, make sure you base your budget on an average income over 3 to 6 months and not the highest possible earnings you may get. This approach ensures you cover your essential needs and any extra income then becomes a bonus. This way, you are more likely to consistently meet your financial goals every month.
Find a Budget That Works for You
Look at your spending over the past six months and use that as you base case to effectively manage your finances and control spending going forward. Use this information to set a realistic budget and do not cut any spending areas so aggressively that it becomes unsustainable. Regular money check-ins, either weekly or monthly, can help track your progress and make necessary adjustments. Using this approach will help you control your spending and allow you to find a balanced approach to your finances. You may also find it useful to research different types of budget methods, such as cash envelope budgeting or the 50-30-20 method. It is up to you!
Talk to Your Family and Friends
Experiencing financial problems can feel isolating, but you do not have to face them alone. Open up to your family and friends about your financial concerns. They can not only offer support, but may also share their own experiences and strategies for managing money anxiety. You can even schedule regular family financial meetings to collectively discuss and plan for big events that will cost more money.
By implementing these strategies, you can start to reduce the impact of financial stress and begin to enjoy life more fully. It may also be helpful to consult a financial advisor if you think you will benefit from more structured guidance. Having the right tools and support will allow you to move towards a future where you stop worrying about money and live with greater peace of mind.
