Everyone feels anxious occasionally – but if you feel anxious too frequently, it can start to negatively affect your body and brain. You may start noticing physical symptoms (such as nausea and insomnia), or you may find that you struggle to stay focused on a single task.
But if your anxiety comes from money worries, you are not alone (in fact, nearly 25% of British adults are worried about debt), and there are things you can do today to take back control of your situation. This will reduce your anxiety, and it will also significantly improve your finances.
Here are four tips to help you deal with financial anxiety.
1. How To Deal With Financial Anxiety: Change Your Budget
If you are very stressed about money, it probably means that your budget is outdated or inaccurate. It is important to regularly check over your budget as life is rarely consistent; some months you may need to downscale, and some months you may be able to save a little more. So get a piece of paper and take stock of your finances; go over bills and set expenses, and look at areas where you could cut back. For instance, you may be able to reduce your travel expenses.
If you have debt with high interest you may also want to consider using some savings to pay this off. This is because high interest rates can make it difficult for you to stick to your budget (but you should only do this if you have enough savings to do so).
It can be frustrating to downscale as it can feel like taking a step back, but this is the best way to avoid serious financial trouble. Over time you can consider ways to increase your income, but initially it is best to focus on reducing expenses and avoiding debt.
2. Speak To A Financial Advisor
You may also want to speak to a financial advisor (virtual or in-person) about your situation. Some people assume that financial advisors only work with the rich, but this isn’t the case at all – and speaking to an advisor will put you on the right path and help to alleviate your fears.
Talk about your financial goals (maybe you want to invest, or maybe you want to save for retirement), and be clear about your current financial situation. Don’t feel embarrassed or ashamed; remember that most adults experience money worries, and there are millions of successful adults with debt.
3. Begin Educating Yourself
People tend to fear the things they don’t understand, and that can definitely apply to money. Financial illiteracy is also very common, but thankfully it is also easy to fix. So take steps to educate yourself about money; use the internet and books to learn more about positive financial habits, and speak to a debt advisor if you have debt that worries you.
4. Think About The Positives
Finally try to focus on the positive aspects of your financial situation. Sure, this won’t help to pay off debt or bills, but it will help to calm your mind and give you a more realistic perspective of your finances. You may also notice that you have specific financial strengths, and this could help you to come up with solutions to your money problems.
So get a piece of paper and write down your financial management skills; maybe you are good at saving, or maybe you have a good credit score because you always pay bills on time. Both of these traits could help you to negotiate with credit or bill companies.