Financial anxiety stems from worries about your finances or debt. You may see that your heart is beating faster than usual, or you lack peace of mind. This feeling can be there when you wake up in the morning, and it’s still there when you go to bed at night. This kind of stress can affect not just your mental and emotional well-being but your physical health, relationships, and quality of life. So, what can you do about it? Let’s look at some practical steps to manage and overcome financial anxiety.

Understand Your Financial Anxiety

The first step in dealing with any issue is to understand it. Financial anxiety can stem from various sources: debt, unpredictable income, past financial mistakes, or even a lack of understanding of personal finance. Identifying the root cause of your anxiety is crucial because it shapes the approach you’ll take to manage it.

Educate Yourself About Personal Finance

A lack of knowledge can contribute to financial anxiety. Financial literacy can seem complex, but it’s like any other subject—you can learn it. Start with the basics: budgeting, saving, investing, and managing debt. There are countless resources available, from books and online courses to blogs and podcasts, tailored to different levels of expertise and interests.

Create a Budget

Creating a budget gives you clarity on where your money is going and helps you make informed decisions about your spending. Start by tracking your income and expenses. Then, categorize your expenses and set realistic limits for each category. When you have a budget, it means you’re intentional about how you spend. When you’re intentional about how you spend, it will help you take charge and be in control of your finances. This will then ease your burden and the anxiety can start to wear off as time goes by.

Build an Emergency Fund

An emergency fund is designed to cover unexpected expenses like car repairs, medical emergencies, or sudden job loss. Try your best to save three to six months’ worth of living expenses. Knowing you have this cushion can reduce financial anxiety because you’re prepared for life’s unexpected turns.

If any emergency shows up, you will be less anxious because you have something to rely on. But when there’s no hope of help anywhere, it can increase your level of anxiety. Imagine your credit cards are maxed out, maybe you’re going through a debt relief program, or you’re knee-deep in debt, adding an emergency to all that can mess up your mind. Preparing beforehand will make things better.

Tackle Your Debt

If debt is the source of your anxiety, create a plan to tackle it. List all your debts, along with their interest rates and minimum payments. What works for Anna may not work for Adam, you need to understand the kind of debts you have and your income. When a budget is set in place, it makes things a lot easier for you. But if it’s overwhelming, consult with a debt expert at EmpireOne Credit. This will help you get a better perspective and you can go for the best debt management plan that will give you peace of mind.

Automate Your Finances

Automating your finances can help reduce anxiety. When you do this, it means your bills will be paid on time, and savings goals are met without constant monitoring. Set up automatic payments for your bills, and automatic transfers to your savings accounts. This not only saves time but also reduces the worry of missing payments or not saving enough.

Talk to a Financial Advisor

Sometimes, managing financial anxiety requires professional help. A financial advisor can provide personalised advice tailored to your financial situation and goals. They can help you create a financial plan, optimise your investment strategy (if they are investment experts), and navigate complex financial decisions.

For example, if you speak with a debt expert, they can analyse your debt situation. How much do you owe on credit cards, payday loans, personal loans, lines of credit, student loans, mortgages, or car loans? When they have a full grasp of your income, expenses, and debt, then, they can better devise a strategy that will help you get a hold of the situation without losing your peace of mind any further. They are trained to handle all sorts of debt problems and you need not be ashamed to talk to them.

Financial anxiety isn’t just about money; it’s also about how you react to financial stress. Practising mindfulness and stress-relief techniques can help you manage anxiety. Techniques like meditation, deep breathing exercises, and yoga can help calm your mind and reduce stress. You may want to go to the gym or find a yoga or gym instructor, so you can release all that negative energy into the wind.

Set Realistic Financial Goals

Setting unrealistic financial goals can lead to frustration and increased anxiety. Set achievable, measurable goals that are aligned with your financial capacity and priorities. Sometimes, comparing yourself to your next-door neighbor can make you start dreaming unrealistic dreams which may lead to setting unrealistic goals. When you then fail to achieve such goals, you may start to feel less of yourself and anxiety can set in. You should know what you’re capable of, even though you can challenge yourself, but don’t stress it too much so you don’t set yourself up for financial stress.

Put an End to Financial Anxiety: Call us Today!

If you’re dealing with anxiety that’s stemming from overwhelming debt, there’s help available for you. Your debt can be reduced by up to 80%, and interest will stop immediately. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!