‘My eyes fly open and I can’t catch my breath. Waking suddenly, my stomach churns, brain whirls and emotions run high as I stare into the dark. Panicked, I can’t slow my thoughts enough to return to the security of sleep. A self-employed single mum, anxiety overtakes me as I worry about my finances and my family’s future.’
Prue’s words reflect the way many of us feel. She came to TruWealth as a new client with a list of concerns that had been keeping her awake at night for months on end. A professional woman who runs her own business, she was exhausted from the constant worry about everything from her daily expenses to how she will survive when she retires.
The ongoing stress was affecting her health, making her snappy, irritable and uncharacteristically unhappy.
The psychological definition of financial anxiety is ‘an uneasy and unhealthy attitude toward engaging with, and administering .... personal finances in an effective way.’ While it’s natural for us to worry, financial anxiety becomes a problem when it affects our health and day-to-day lives. And, interestingly, this degree of anxiety can be experienced by anyone, even people who have a good income and strong financial position.
It’s not always easy but with the right attitude, education and guidance, it is possible to reduce your financial anxiety and create a positive relationship with money.
5 Steps to Manage Financial Anxiety
1. Identify the sources. Write down your thoughts about your financial situation and money in general. Be completely honest. Journalling is a great way to gain perspective and discover the true sources of your anxiety, and it’s often surprising what you come up with when you sit quietly and reflect on your worries. Doing this exercise will help to relieve some of your stress, give you a basis to plan ahead and will give you some ideas about the best ways to confront your anxiety.
2. Deal with one situation at a time. Financial problems can be overwhelming. Handle each problem separately; break it down into small steps and work your way through them. Once you have dealt with one problem, you will feel calm, in control, and ready to tackle the next stage of your plan.
3. Engage a Financial Adviser you can trust. It’s important that you can trust the professional who helps you manage your financial planning.
When you’re starting out, take advantage of the no-obligation initial consultations offered by many advisers and get to know them. How do you feel when you talk to them? Are they calming? Do they show you that they are listening and understand your unique situation? Do you feel you can trust them?
When you begin to work with an adviser, it’s important that their advice is consistent. An inconsistent message results in the loss of trust, and anxiety creeps in. If you do feel anxious at any point during the process, discuss it with your adviser and work through the issue until it is settled.
4. Communication is the key. Uncertainty is often the root of anxiety; we worry when we don’t know what to expect, or we’re unsure what to do. But, if we have a plan and know what is coming next, we feel at peace and able to tackle the problem.
It’s important to be honest and share your real concerns when you are talking about financial matters. If you have made bad decisions in the past, now is the time to let go of any residual guilt or shame. This will help to relieve some of your anxiety and clear space in your mind for new behaviours and patterns to develop. And don’t forget that communication is about talking AND listening – sometimes just being heard helps to calm emotional responses to stressful situations, so never be fearful of open and honest communication.
5. Don’t compare yourself to others. Seeing your next door neighbour’s shiny new car, or scrolling through a school mum’s Instagram pics of her Bali retreat, can create anxiety. Feeling you’re not doing a good enough job, earning enough money, budgeting well or keeping up with those around you is a major source of concern in this social media dominated world.
But it’s important to remember that you have no idea of anyone else’s financial situation. The school mum may have saved for years for her trip, or the holiday may have sent her into debt. The new car could be a result of an inheritance. You just don’t know. So, again, let it go and focus on how you will achieve your future goals and find the peace and happiness you desire.
If you’re experiencing financial anxiety, following these steps will help you begin to take control of the situation. As you create new habits and develop a more positive relationship with your money, you will notice a reduction in your stress levels. And, hopefully, you’ll enjoy the benefits of many uninterrupted nights of sleep!
Take the first step to financial strength and independence, contact TruWealth on 03 8648 6534 or email contact@truwealthadvice.com.au