Ways To Cope With Money Anxiety & Financial Stress

Money and financial concerns can be ongoing challenges for many people. Still, if you’re worried that something terrible could happen to your finances and it’s starting to interfere with your everyday life, you might be experiencing something more than typical money worries.

Anyone can experience money anxiety, but learning how to cope can help you improve your quality of life. Read on to learn more about money anxiety, including its leading causes, signs and symptoms, and what you can do to control financial-related stress. 

Money anxiety: Worry related to financials

Money anxiety can occur when worrying about personal finances harms other domains of your life. Anyone can experience money anxiety, no matter how much money you make or have in the bank. People who struggle to pay their bills can experience money worries, but so can people who worry about saving for their retirement, paying for their children to go to college, or facing substantial medical bills. 

Money anxiety may be a form of generalized anxiety disorder (GAD). People with GAD may feel extreme worry about things like money challenges when there might be no cause for concern. GAD may have the following symptoms: 

• Struggling to control one’s worrying
• Knowing that they are worrying much more than they should
• Experiencing sleep troubles or feeling tired all the time
• Having stomach aches, headaches, muscle aches, or unexplained pains
• Being quick to show irritability
• Sweating profusely
• Feeling out of breath or lightheaded

These symptoms can fluctuate over time and get worse during stress. When it comes to money anxiety, a person may engage in ruminating behaviors, like constantly monitoring their checkings, savings, and investment accounts throughout the day. They may also over-work to the point where they don’t participate as much in activities they once enjoyed.

Other symptoms of worry related to financials

Other behaviors related to money anxiety range from avoidance to hypervigilance. On the one hand, someone might procrastinate paying their bills because they face a staggering amount of debt. They may experience a sort of decision paralysis in making minor financial decisions because they are worried about associated costs.

On the opposite end of the spectrum, someone with money anxiety may overcompensate by planning a strict budget and showing an unwillingness to make minor changes to their plan. This inflexibility may carry over into other realms of their life, potentially damaging professional and personal relationships.

What causes money anxiety and financial stress?

Money anxiety can come from many sources, many of which are environmental. As we grow up, we watch our caregivers and how they respond to environmental stressors, often adopting these responses ourselves.

Conversely, we may have a relatively stable childhood and not encounter financial difficulties until adulthood. While anxiety about money can affect anyone, some people are more likely to experience it.

People who have a history of poverty

Poverty can be traumatic, especially to children, and can span generations. Suppose you grew up in poverty or you have ever experienced struggling to afford housing or food as an adult. In that case, you may constantly fear being back in that position, exhibiting a scarcity mentality. You may feel that you need to save up a certain amount of money, or your family may place higher expectations on you to earn more and be more financially stable, leading to anxiety.

People living paycheck to paycheck

More than half of all Americans live paycheck to paycheck and likely don’t have a savings account or emergency fund. Any minor setback can lead to a multitude of dilemmas. For people in this position, taking a day off work or an unexpected expense can mean not having enough money to buy food for the month or put gas in the car.

People facing more expenses without an increase in income

Inflation can lead to a higher cost of living for many people. For people who don’t have a safety net or are living paycheck to paycheck, the money they have coming in may no longer be enough to meet their needs. Their expenses may outweigh their income, so they may wonder how they’ll make ends meet.

People who have a significant amount of debt

Debt can affect anyone, and sometimes, it can be completely unexpected, such as in the case of debt accumulated through an emergency hospital operation or stay. Many people struggle to pay student loans or credit card debt, and medical debt can pop up suddenly.

Debt can be inevitable in a society where many homeowners pay a monthly mortgage for decades, sometimes never paying off the amount they owe on their purchased home. For example, if you want to move into a bigger apartment, you can put it off a year to get a little more financially stable first. If you have debt, you must pay it on time or face accrued interest, penalties, or debt collection. 

People who rely on gig work

Gig work may have grown in popularity, but some research shows that it can contribute to increased stress. 

By nature, gig work can be uncertain and unpredictable, with changing working hours, juggling multiple jobs simultaneously, or never knowing where the next job will come from. Gig work can alternate between having so much work that it begins to affect one’s work-life balance and having so little work that the person may be unsure of where their next paycheck will come from, which can cause money anxiety.

Ways to cope with money anxiety

If you’re experiencing money anxiety, it might be tempting to ignore stressors and keep working as hard as possible. But this type of anxiety may be like any other type. It can significantly impact your physical and mental health. Here are some ways to address your anxiety and any underlying money complications. 

Take a break from money anxiety

It’s hard to figure out a solution to money challenges when you can’t focus, and anxiety can be a vicious cycle. Sometimes, walking away from a situation and taking a break can give you the clear head you need to devise a solution. 

Some relaxation techniques that might work for you include: 

• Listening to your favorite music
• Doing breathing exercises or meditating
• Exercising or taking a walk outside

Ask for support

Some people may be embarrassed to talk about their money worries or blame themselves for their financial situation and try to conceal them from their friends and family. But many people have complications with money, often due to no fault of their own, and you never know who may be in the same position or who has been and can offer advice and support. 

Note that asking for support during financial hardship doesn’t necessarily mean asking for money. While you may find that someone in your social circle may be in a place to help you financially, reaching out to others also gives you a chance to brainstorm solutions, vent about your fears, and learn about new employment or aid opportunities.

Reach out to a professional in finances

If you’re experiencing financial struggles, consider meeting with a professional. Credit counselors or financial planners can help you formulate a plan to achieve financial wellness. If you feel overwhelmed by your financial anxiety or want to talk to someone about your underlying beliefs about money, talking to an online therapist can also help.

Get support in online therapy

Financial stress and anxiety can stem from many things, not just a lack of income. These factors can include attitudes about money developed in childhood or fears about the future. Talking to a therapist about your thoughts, beliefs, and behaviors about money can help you devise a plan to change them and learn coping skills to manage money anxiety. 

Benefits of online therapy: One of the ways to cope with money anxiety

If you’re uncomfortable talking about your bank account with someone face-to-face or looking for a more convenient option, consider online therapy.

When you sign up, you’re matched with a vetted mental health professional within 48 hours to get started. Online therapy mitigates the need to take off work and commute to an in-person practitioner’s office, which could potentially reduce your paycheck.

Effectiveness of online therapy for financial stress

Research shows that online treatment is also effective, with one review of 14 studies concluding that it’s just as effective as in-person sessions. In a research trial specifically focused on examining the effectiveness of an online cognitive behavioral therapy (CBT) intervention in improving perceived financial well-being, study leaders found online CBT effective in reducing the adverse relationship between financial difficulties and mental health.

Takeaway

Worry related to financials is something many people experience from time to time, but if your money anxieties are interfering with other areas of your life and affecting your mental and physical health, talking to an online therapist can help.

The BetterHelp team comprises diverse professionals experienced in various mental health challenges and therapeutic approaches. To add a nonjudgmental member to your support network, reach out to a licensed online counselor at BetterHelp.