How to control financial anxiety – and get a good night’s sleep!

April 29, 2021

Natallia Smith
(TruWealth Advice)

‘My eyes fly open. I can’t catch my breath. Waking suddenly, my stomach churns, my brain whirls and emotions run high as I stare into the dark. Panicked, I can’t slow my thoughts. A self-employed single mum, anxiety overtakes me as I worry about my finances and my family’s future.’

 

Financial stress impacts our overall wellbeing

Prue’s words reflect the way many of us feel. A new TruWealth client, she had a list of concerns that had been keeping her awake for months. Working as a professional businesswoman, she was exhausted from the constant worry about everything from her daily expenses to how she will survive when she retires.

The ongoing stress affected her wellbeing, making her snappy, irritable, and uncharacteristically unhappy.

What is Financial Anxiety?

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 to worry, financial anxiety is a problem when it affects our health. Interestingly, even people who have a good income and a solid financial position can experience this degree of anxiety.

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 money and your financial situation. Be completely honest. Journalling is a great way to gain perspective and discover the true source of your anxiety. It’s often surprising what you come up with when you quietly reflect on your worries. Doing this exercise will:

  • help to relieve some of your stress

  • give you a basis to plan ahead

  • give you some ideas about the best ways to confront your anxiety

  1. Deal with one situation at a time

Financial problems can be overwhelming. Handle each situation 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.

  1. Engage a Financial Adviser you can trust

It’s essential to connect with your financial planning professional. Take advantage of the no-obligation initial consultations offered by many advisers and get to know them before you choose who you want to work with:

  • How do you feel when you talk to the adviser?

  • Are they calming?

  • Do they show you that they are listening and understand your unique situation?

  • Do you think you can trust them?

  1. Communication is the key

Uncertainty is often the root of anxiety; we worry when we don’t know what to expect or are unsure about what to do. But, if we have a plan and know what is coming next, we feel more able to tackle the problem.

It’s important to be honest 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.

Don’t forget that communication is about talking AND listening – sometimes just being heard helps calm emotional responses to stressful situations. Never be fearful of open and honest communication.

  1. Don’t compare yourself to others

Anxiety can hit when you see your next-door neighbour’s shiny new car or hear about a school mum’s Bali retreat. Feeling you’re not doing a good enough job, earning enough money, budgeting well or keeping up with those around you is a significant source of concern in this social media dominated world.

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 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, follow these steps to help you gain control. As you create new habits and develop a more positive relationship with money, you will notice a reduction in your stress levels. And, hopefully, you’ll enjoy the benefits of uninterrupted sleep!

Take the first step to financial strength and independence, contact TruWealth on 03 8648 6534 or email contact@truwealthadvice.com.au