Strategies for Managing Financial Stress and Anxiety

Build peace of mind with these stress-busting financial habits:

Do One Thing: If you aren’t already consistently saving, it’s time to set up a separate account to begin building up a cash cushion. Why? Having some money set aside can help ease anxiety, especially in tough times.

Deal with Money Issues: Money stress can be the worst. Sometimes we beat ourselves up for not saving enough or spending too much. And the anxiety that can bubble up from living with high-interest credit card debt is enough to keep anyone up at night and drag them down during the day.

Financial Mistakes Don’t Define You: If we can’t get up the gumption to change our financial habits, all that stress and anxiety can start to feel overwhelming. If this sounds like you:

• Give yourself a break.
• Offer yourself some forgiveness.
• Don’t allow those mistakes to define you. 

Identify Your Money Mindset: Laura K. Cook, CFP, with Flourish Financial Life Planning, says she takes time at the beginning of a new client relationship to figure out the root causes of someone’s financial stress. “Often, a client’s anxiety or financial stress stems from some deep-seated beliefs around money or some fears that were shaped early on.” 

Take Baby Steps: Once she understands where someone is coming from, Cook encourages clients to seek small bits of financial education at a time. “By starting small, they don’t put as much pressure on themselves, and it allows their knowledge to build on itself, helping them to gain confidence over time.”

Set Up Money Appointments: If looking at the bills or bank statements causes untold stress, Cook encourages clients to:

• Set aside a specific time to take on the task, whether that’s paying bills or mapping out a budget.
• Create an environment that is familiar and comfortable.
• Play relaxing music and even fix a cup of tea.
• If what you see on the paper causes anxiety, then try to eliminate all other sources of stress around you so you can focus and make smart decisions.

Make Your Savings Automatic (and Meaningful): Automating your savings will help you put away much more money than relying on yourself to remember to take that extra step with consistency every month. 

Give Yourself Grace: When it comes to money matters, Cook says one of the best things you can do is to always be kind to yourself. “Often, our financial troubles are a result of some really traumatic times in our lives, or maybe they aren’t even our fault, so we should show ourselves grace when we are trying to improve our situation.”

Article courtesy of our partnership with SavvyMoney. Read full article here.