Ways to Reduce Anxiety Surrounding Money

Money is often a taboo topic, yet financial strain can trigger chronic anxiety in people. People suffering from anxiety linked to money are often embarrassed to admit it. They feel that admitting to a counselor that they struggle to pay their bills and put food on the table somehow makes them less worthy of mental health help. So, the cycle continues.

Let’s normalize speaking freely about money issues and how they affect mental health, starting with ways to reduce anxiety surrounding money.

Dealing with Anxiety Surrounding Money

Anxiety can make it difficult to sleep at night, and if you struggle to keep up with the expenses, then you are familiar with those sleepless nights. Knowing it could be a debt collector, you may be well acquainted with panic attacks, heart palpitations, and trembling when the phone rings.

If you are looking for ways to reduce anxiety over money, you have come to the right place. The following list delves into actions you can take today to gain control of your finances. Feeling in control, setting goals, and making headway in your finances will create a sense of accomplishment. You will have more confidence in yourself and trigger the brain’s reward center, lowering your stress level.

Make budgeting your friend

The first step to learning ways to reduce anxiety about money is to become aware of your monthly income and expenses. The next step is to budget your income, so you know exactly what you have to work with monthly.

Dave Ramsey, the financial radio show host, recommends using a zero-based budget. To start, you list your income for the month and then assign money to each of your expenses down to the dollar. Always start with the basics, such as tithing, savings, mortgage or rent, utility bills, groceries, and clothing.

Next, assign the remaining expenses to the budget until your balance equals zero. Don’t forget a category for fun, like the occasional fancy coffee or magazine. This gives you control over where you spend your money. No more trying to remember where you spent $20. It should all be listed in the budget.

Sell items you no longer love

If you are worried about bills or debts, find ways to increase your income to pay them off. Start by looking around your home for items you no longer use or love. You can sell them on eBay, Amazon, and other platforms or hold a yard or garage sale for less expensive items.

Decide what you want to sell and the prices. Do your research on collector pieces to ask for the appropriate amount, and don’t forget the furniture that you no longer use or that doesn’t serve you.

Consider a side hustle

Research opportunities to increase income. Many people operate a side hustle or pick up a second job to pay off debts or purchase Christmas gifts. If you apply for a second job, keep in mind your schedule and responsibilities to your family. Leave time for yourself so that you do not get overwhelmed and worsen your anxiety symptoms. Choose one that can work around your schedule, like food delivery or a driver.

You can find ideas for side hustles online. Many people go this route because they can work around their schedule. Maybe you want to sell a product through a company for a commission or start your own blog. Do you have a skill you could share with others? You could start an online course or offer your services in person.

Learn to live luxuriously on a budget

Don’t allow anxious thoughts about a budget to scare you. You can still live a luxurious life by thinking of ways to have fun without spending extra money. For example, ask your local library about their app to borrow eBooks for free instead of purchasing eBooks. Eat dinner at home before going out to an event, or pack a meal to take with you. Check out consignment shops for designer names or look for knock-offs.

Go through your closet and drawers, rediscover outfits, or create new ones with just a few trendy pieces. Check out your bathroom closet, and under the sink, for body cream and perfume you’ve purchased in the past, or that someone gave to you. Use those up first if you like the scent. List ways you can feel luxurious without spending more money.

Know your accounts

You may already be well-acquainted with your checking and savings accounts. If not, log in and review these accounts daily. Keep an eye on banking activity. If you notice unusual activity, report it to the bank immediately. While reviewing the account, note any automatic payments or subscriptions you may have forgotten about. Unused subscriptions can add up quickly.

If you do not have a savings account yet, open one. Having a little money stored away gives you a sense of security in the case of emergencies. Every payday, transfer a little money over to this account. Don’t worry if it isn’t much. You want to build the habit. Plus, even $20 deposited weekly equals more than $1000. Don’t underestimate the power of compounding.

Negotiate to pay off debt

Paying off debt is necessary to maintain your credit score and integrity. Whether it is student loans, vehicle loans, mortgages, or credit card bills, make sure to pay them off as quickly as possible.

This isn’t always easy if you owe a lot of money to various debtors. Pay the minimum amounts if you can, then choose the debt with the smallest balance and start paying more than the minimum amount. When that debt is paid, take that monthly payment amount and apply it to the second smallest balance. Dave Ramsey calls this the Snowball Method, as the payments snowball into each other to help you pay your debt off faster.

Work with your spouse

If you are married, being on the same page when it comes to finances makes things run smoother. Stress and anxiety can result if spouses are not working together as a team to budget and manage finances. If your spouse insists on doing the budgets and accounts, that is fine, but you must have access and understand what is coming in and going out. Enlist the help of a counselor if you are having relationship issues over access to financial accounts.

If your spouse is on board, consider taking a financial course together. It is a great bonding activity, and you will learn about budgeting, paying off debt, building an emergency savings fund, paying off the mortgage, and investing your money. Once you have a plan, you will find that your anxiety levels naturally lower.

Seek help from a financial advisor

A financial advisor is not a mental health counselor, but they know that if you create a plan for your money and follow it, you will be happier and more confident overall. They help their clients find peace while paying off debt and getting their finances on track. Financial advisors are good at helping you diversify investments to grow wealth.

Check out financial advisors from reputable companies and do your research before hiring one. They are not necessary, but as you pay off debt and want to do more with your money, it is good to seek the advice of a professional. Take investment courses to learn industry jargon and understand the basics of what is happening to your money.

Enlist the help of a counselor for anxiety

If your chronic anxiety is due to money issues, you are not alone. Several surveys conducted have shown that about half of participants cite financial stress as the reason for their anxiety.

Learn more about the ways to reduce anxiety surrounding money as well as practical techniques for overcoming anxiety symptoms from a Christian counselor in Texas. Contact us today at Texas Christian Counseling to set up an appointment with me or one of the other Christian counselors listed in our online directory.