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How to worry less about money?!

Money can be a significant source of stress and worry for many people. Whether it’s worrying about how to pay the bills or planning for the future, financial anxiety can take a toll on our mental and physical health. But there are ways to break free from the worry cycle and take control of your finances.

So, take a deep breath, relax, and let’s get started on this journey towards peace of mind (and worrying less about money). 

Why Do We Worry About Money

Money is an integral part of our lives, and it’s no secret that many of us worry about it. There are several reasons why we do this, and understanding these can help us overcome financial anxiety.

One of the most common reasons for financial worry is the fear of not having enough money to cover our basic needs. For instance, you may worry about paying rent or mortgage, utility bills, groceries, and other necessities. You may also worry about unexpected expenses such as car repairs, medical bills, or home repairs.

Another reason we worry about money is the fear of missing out. This is often referred to as FOMO, and it can lead to overspending and accumulating debt. You might sit around and think about how you’ll afford the latest gadgets, fashion trends, or vacations that your friends or colleagues enjoy. This fear causes some to live beyond their means and creates financial stress.

We might also worry about money because of societal pressures and expectations. We live in a culture that values material possessions and financial success, and it’s easy to compare ourselves to others and feel inadequate. For instance, you may worry about not having a high-paying job, a fancy car, or a big house, even if you don’t necessarily need or want these things.

Finally, we might worry due to uncertainty of the future. We don’t know what’s going to happen, and naturally we want to prepare for any eventuality. But while there’s nothing wrong with planning, we shouldn’t obsess about every thing that could possibly go wrong with our finances.

The Danger of Worrying About Money

Worrying about money can be dangerous if it leads to stress, anxiety, and depression. The negative impact can extend to our mental and physical health, our relationships, and our overall quality of life.

When we’re overly anxious about finances, it can be easy to become fixated on our financial situation, leading to a narrow and negative perspective. We may overlook the good things in our lives, leading to feelings of inadequacy.

Money anxiety can manifest in different ways. One sign is having obsessive thoughts about money or constantly worrying and thinking about your financial situation. Another sign is avoiding financial responsibilities like paying bills or checking your bank account, because you’re afraid of what you’ll see.

Feeling shame or guilt about money is a sign, too, and money worry can also cause physical symptoms like headaches, stomach aches, or panic attacks.

How to Worry Less About Money

Here are 10 practical tips to reduce anxiety so that you can worry less about money:

• Create a budget: Knowing where your money goes can alleviate the fear of not having enough. A budget can help you understand your financial situation, prioritize your expenses, and identify areas where you can cut back.

• Set realistic goals: Setting realistic financial goals can help you focus on things that matter most to you. It can also give you a sense of control over your finances and reduce anxiety.

• Focus on what you can control: Some things are beyond your control, such as the stock market or economic downturns. Instead of worrying about things you can’t control, focus on what you can control, such as your spending habits, savings goals, and debt repayment plan.

• Practice gratitude: Gratitude can help shift your mindset from scarcity to abundance. Take time to appreciate the things you already have, such as a roof over your head, food on the table, and the love of your family and friends.

• Start an emergency fund: Building an emergency fund provides peace of mind and a safety net in case of unexpected expenses or job loss. Aim to save at least three to six months’ worth of living expenses. As a suggestion, open a high-yield savings account for your emergency fund. You’ll earn a higher rate compared to a regular saving, which can maximize your savings effort. One recommendation is CIT Bank’s Savings Connect (this account earns 4.50% APY as of April 2023).

• Cut back on unnecessary expenses: Take a look at your spending habits and look for areas where you can cut back. For example, you can cancel subscription services you don’t use, cook at home instead of eating out, or shop for clothes at thrift stores. And then “save your savings.”

• Seek financial advice: If you’re feeling overwhelmed or unsure about your finances, consider getting professional advice from a financial planner or counselor. They can help you create a personalized plan based on your goals and financial situation.

• Practice self-care: Taking care of your mental and physical health can help reduce stress and improve your overall well-being. Make time for activities that bring you joy, such as exercise, reading, or spending time with loved ones.

• Avoid comparing yourself to others: Comparing yourself to others can lead to feelings of inadequacy and financial anxiety. Remember that everyone’s financial situation is unique, and focus on your own journey.

• Celebrate small victories: Celebrate small milestones along the way, such as paying off a credit card or sticking to your budget for a month. Celebrating your successes can help you stay motivated and focused on your financial goals.

What strategies have you used to manage financial anxiety and worry less about money?