What Is It And How Do You Cope With It?

While worrying about not having enough money is an example of financial anxiety, Blackwell wants us to know that’s not the only case where it happens. Financial anxiety can also occur when you obsess over saving every dollar, become hyper-aware of where your money is going, or imagine situations where you lose all your money. All of these examples involving your finances can cause discomfort or worry that keeps you up at night or disrupts your daily life.

“There’s so much research on how your family unit presents your relationship with money to you, so it can definitely be a trigger for how people relate to money,” Blackwell says.

For example, if you grew up watching your parents struggle with money or go into more debt to pay for basic expenses, you may have entered adulthood with a fear of debt. Or, unexpected expenses and paying for big-ticket items can make you feel hypervigilant about spending because you worry you won’t have enough to cover other costs.

On top of that, it’s also common to experience high levels of financial stress related to your income, especially as the cost of living keeps rising.

“Things are usually very expensive, so it can be stressful to think about how much you’re earning versus the cost of living, especially in cities,” says Blackwell. “Many things that people considered ‘essentials’ are expensive and figuring out how to pay for them can cause a lot of stress.”

To start reducing your financial anxiety, first identify what is causing your stress. Here are three examples of things that cause financial anxiety and ways to fix them.

Cause: Lack of personal finance education

Blackwell suggests that those in this common scenario start learning the fundamentals of things like budgeting and saving for the future so they can feel a little more in control. Today, there are tons of free resources you can tap into to learn more about money management, whether through books, podcasts, newsletters, or online articles.

Money Confidential, a podcast hosted by Real Simple, covers some common questions that people just starting out on their financial journey often need answers to. So Money, another podcast hosted by financial expert Farnoosh Torabi, spends a lot of time on a variety of topics — like how to make more money, when housing prices will drop, and how to build a strong investment portfolio. The show host also chats with experts in the field who can offer answers to all of these questions and more.

But if you’re not a big podcast listener and prefer to read, Ramit Sethi’s “I Will Teach You To Be Rich” and Napoleon Hill’s “Think and Grow Rich” are two Amazon bestsellers for kids. personal finances.

Plus, Select regularly talks with experts about their tips for beginners looking to create a budget, learn the ins and outs of investing, pay off debt, and more.

Cause: a money misstep

If your financial anxiety stems from a money mistake you made, try to avoid dwelling on what has already been done and instead wait to fix it.

“The first step is not to beat yourself up,” says Blackwell. “Don’t dwell on the past, because being angry about how much you spent on your credit card last month, for example, won’t get you out of debt any faster.”

Your next step, in this example, may be opening a balance transfer credit card which can buy you time to pay off your credit card balance without accruing additional and costly interest. The Citi® Diamond Preferred® Card, for example, is a credit card that lets you make payments on your transferred credit card balance for an initial APR of 21 months without interest (after, 13.74% at 23.74% Variable APR) from the date of the first transfer.

That’s almost two years of a 0% APR introductory period on balance transfers; just make sure you have a plan to pay off your balance within that time frame so you don’t start earning interest once the 21 months are up. All transfers must be completed within the first 4 months and there is a balance transfer fee of $5 or 5% of the transfer amount, whichever is greater.

Cause: your childhood beliefs about money

Sometimes it’s not so easy at first to see how our financial habits and values ​​today are the result of how we were brought up to think about money. But if you’re not sure what caused your financial anxiety, it’s worth taking a trip down memory lane to see how your childhood played a role in how you handle your finances today.

If you discover that your “financial education” may be the reason you’re hyper-aware of getting into debt, for example, Blackwell recommends focusing on building an emergency fund. With an emergency fund, you can relax a bit knowing you have a cash safety net to rely on.

Consider opening a high-yield savings account — like the Ally Online Savings Account or the Marcus by Goldman Sachs Online Savings Account — for your emergency fund needs. This way, you can earn slightly higher interest and grow your balance a little faster.

If you’re feeling anxious about your finances, take the time to identify what may be causing it so you can feel more in control of how to help yourself.

To get started, find an accredited counseling organization in your area on the Financial Counseling Association of America (FCAA) website or by phone at (800) 450-1794. You can also search the National Foundation for Credit Counseling (NFCC) website or call (800) 388-2227.