How to Cope with Money Anxiety

Financial or money anxiety has become more common than ever. If you have found yourself worrying about cash lately, you are not alone. In the American Psychological Association’s 2022 Stress in America Survey, 87% of the participants listed inflation as a trigger of significant stress.

Moreover, Traveloka found that 51% of Singaporean men respondents named financial stability as the top stressor in its wellness survey. The rise in prices coupled with the effects of the global pandemic has people from all backgrounds worried.

To know whether you are undergoing money anxiety, you must watch out for some signs. A few signs your anxiety surrounding finances is becoming a serious concern include:

a. Avoidance of bills and other important statements
b. Aches and pains such as headache or upset stomach when you look at your financial situation
c. Analysis paralysis when it comes to decision making
d. Lack of work-life balance
e. Rigidity in planning and its outcome
f. Rumination of money matters such as your retirement fund or credit card bills
g. Sleeping problems due to your financial situation

You see, financial anxiety preoccupies your life and can cripple your day-to-day work. It is more than just worrying about having enough money in your bank account as it manifests similarly to the symptoms of generalized anxiety disorder, such as tension and irritability.

Nonetheless, here are some ways you can employ to cope with money anxiety.

Image Credits: pixabay.com

#1: CHANGE YOUR RELATIONSHIP WITH MONEY

We were taught about money during our childhood. If the values and practices you were taught in the past do not match with your own adult financial situation, it can lead to avoidance and isolation. One of the best ways to establish a relationship with money is to treat it as a problem to be solved. Look at your values, behavior, and practices objectively and learn more about yourself.

Creating a money practice or starting a habit of regularly assessing your finances is the simplest way to shape your relationship with money.

#2: DO REGULAR CHECK-INS

In situations where you feel highly stressed and anxious, your body thinks that it needs to react quickly to danger, so it goes into a flight or fight mode. Others tend to freeze and avoid their finances altogether. Thus, it is important to set a time to look at your money. This approach is more focused and safer for your wellbeing.

For instance, you can choose a random weeknight to examine your finances. Rather than waiting for an unfortunate situation, you can decide ahead of time to prevent a certain financial issue.

#3: CONSIDER GETTING SOCIAL SUPPORT

Many Singaporeans hide their financial issues because they feel embarrassed, or they blame themselves for their situation. However, many people undergo financial trouble often. Keep in mind that anyone can experience money anxiety or financial concerns, despite wearing expensive clothes or having prestigious jobs. We do not know how they keep up with their luxe lifestyle!

These issues can be less frightening when you face them with your social support. Your trusted social support may include your friends and loved ones. These people can help by providing a helping hand or by brainstorming solutions with you.

If your money anxiety is interfering with your daily life, seeking help from a professional can provide relief. Search for a mental health practitioner or a financial expert near you.

Sources: 1, 2, & 3

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Here’s how single-income families can cope with financial anxieties

a woman facing financial anxiety

Every family out there is different, and we ought not to compare ourselves to others. But truth be told, single-income families can lead to a heightened amount of pressure on that sole breadwinner.

Carrie Casden, financial wellness coach and president of Summit Financial Management, said, “Quite often, feelings of fear and anxiety stem from… simply perceiving that we’re out of control of our circumstances, and these sentiments can be particularly prevalent when it comes to single-income families.”

Want to take better control of your mind and financials? Here’s how single-income families can cope with financial anxieties, according to the experts.

Reorder your priorities

Casden noted that families usually have quite a few financial goals they’re aiming for, and that’s okay. However, if there isn’t enough income to put a checkmark beside the various aims, one must learn how to make changes.

Reorder your priorities by keeping in view the items lowest on the list. You can always come back and reassess your financials every quarter of the year.

Be aware of your money views
Singapore money

Image Credits: internations.org

To review your financial anxieties, it’s essential that you’re aware of your views towards money. Here are some questions to ask yourself:

  • Are you cripplingly frugal or overzealous with spending?
  • Does a “spend too much” or “don’t make enough” mindset bother you?
  • Do you tend to avoid talking about money because they make you uneasy?

“There are different ways to reduce anxiety based on the actual issues at hand, which is why I work with clients to help them identify their specific money archetypes to understand the origin of their anxieties and behaviours around money,” said Casden.

Develop a spending plan and track your outputs

Ann James, an accredited financial counsellor and CEO of Financial Freedom Battle Buddies, recommends single-income families develop a spending plan. This will allow individuals to have a sense of control over their money and, in turn, reduce frustrations associated with the unknown.

When it comes to tracking outputs, some of us are experts with the excel sheet. But Dr Elizabeth Dunn, PhD, a happiness researcher, advises us to focus on how purchases make one feel.

“What purchases bring your family joy and which lead to feelings of regret or sadness? Maybe a long and expensive dinner out did not end up saving anyone time, and the regret over spending all of that money on one meal was not worth the spend. But your Hulu or Netflix subscription means the entire family can have a movie night together once a week, and that brings joy to the entire family,” she added.

If you’ve tried the above methods but can’t seem to get around the stress from worrying about money, ask for help.

“Seeking assistance from accredited financial counsellors, credit or housing counsellors, or financial therapists can help alleviate feelings of shame and ultimately reframe an individual’s thoughts and relationships with money,” advised James.

Do you know that the Singapore Counselling Centre offers Financial & Debt Counselling? Or you can also book a 1-to-1 Credit Counselling Session with Credit Counselling Singapore. Click through the links to find out more.

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