5 Key Ways to Cope with Financial Anxiety

Money is one of the most powerful things in the world. It can be a great motivator, a great source of confidence, or it can tear you down with worry and insecurity. 

Unfortunately, many people have financial worries that plague them consistently. As a result, the power of money means something completely different to them. 

If you find yourself stressing or feeling anxious over your finances, you’re not alone. There are millions of people in debt across the country. Others are living paycheck-to-paycheck or wondering how they’re going to afford the basics. 

Now, in light of the COVID-19 pandemic, financial anxiety has grown even more prevalent as thousands have lost their jobs and savings. 

But, financial worries don’t have to take over your life. By learning how to cope with financial anxiety, you can take effective action steps toward getting control of your finances and finding peace. Let’s look at a few healthy ways to cope. 

1. Focus on the Bright Spots

Many times, things aren’t as bleak as they may seem. While you shouldn’t ignore struggles with your finances, try focusing on the positive aspects of them, too. Writing those things down can help to calm your nerves and fears. 

For example, maybe you have a great job, or you’ve paid off one debt. Maybe you’re building up a 401k or you’re able to save money on your own for the first time. It doesn’t matter how small the positives are, they can make a difference. 

2. Review Your Budget

One way to ease some of your anxieties is to take a fresh look at your budget. If you haven’t reviewed it for a while, there may be things you can adjust and “re-tool” to save you money. Are there things you’ve already paid off? Expenses you don’t need? 

Your budget shouldn’t be something you’re afraid to look at. It can be a very helpful tool when it comes to managing your money because you’re in complete control over it. 

3. Start an Emergency Fund

Sometimes, financial anxiety gets stirred up due to fear of the unknown. For some people, those fears came to life when the COVID-19 pandemic hit.  So, if your financial worries stem from the fact that you’re not sure what you’ll do in an emergency situation, start saving now. 

Set up an “emergency fund” for yourself and your family so you’ll always have enough to get by if disaster strikes. Even having a small “cushion” can help to alleviate some of your worries. 

4. Don’t Compare Yourself to Others

Financial anxiety can actually stem from the things we think we should have. Even if you’re in a secure, stable spot, you might worry that you’re not doing “well enough” due to other people. 

Social media has made this a growing problem. 

You might see pictures of your friends and family members posting new cars, houses, or other expensive items. Though you’re getting by and saving, you might start to worry that you’re doing something wrong or that you don’t have enough because you can’t afford those things. 

Keep in mind that what people post on social media is nothing more than a highlight reel of their lives. Additionally, even if someone seems to have a financially-abundant life, you don’t know the whole story. They could be struggling with debt or living beyond their means. 

You can immediately eliminate a lot of stress and worry when you stop comparing yourself to others. 

5. Acknowledge Your Fears

Have you ever considered what the worst possible situation would be if your financial fears came true? Many anxieties stem from the idea of something terrible happening, but have you ever stopped to think about what that would look like? 

What would you do in that situation? How would you handle it? What steps would you take to get things under control? 

Thinking about the worst-case scenario can help you to “face your fears” without them actually happening. Often, you can then see that the worst possible situation may not be all that scary. 

If you struggle with financial anxiety, you can take control of your thoughts and your life again. Keep these coping tips in mind read and more about how to manage your anxious thoughts.  When you’re ready let’s meet for a consultation. Together, we can define your goals, find relief, and move forward without fear.