How To Address Financial Anxiety
Keep reading to learn more about financial stress and ways to calm anxious thoughts about your current financial challenges and your financial future.
How financial worries can create cycles of fear and avoidance
Some people who are experiencing financial difficulty may try to avoid their financial situation. This may be a natural response to mitigate the harmful effects of stress on the mind and body. However, avoidance may make a person’s financial situation worse. While it might be painful to look at a bank balance or credit card statement, avoidance may keep people from making progress, which can exacerbate their anxiety.
Financial anxiety and health problems
Financial anxiety can become so intense that it affects people’s physical health. According to the American Psychological Association (APA), chronic stress can lead to a near-constant state of guardedness. This can lead to chronic tension in the shoulders, head, and neck, which can contribute to tension headaches and migraines. Financial anxiety may also lead to digestive problems and other physical manifestations of stress. Some of these symptoms can be a normal response to stress, but they might still make it more difficult to deal with financial challenges.
Effects of financial stress on mental health
Financial stress can have a major effect on a person’s mental health as well. Some people may develop depression or an anxiety disorder, especially if their financial difficulty becomes chronic. Also, some people may develop coping mechanisms like substance use, which can exacerbate both their anxiety and their financial situation.
If you are struggling with substance use, contact the SAMHSA National Helpline at 1-800-662-HELP (4357) to receive support and resources. Support is available 24/7.
How to calm anxious thoughts about debt and finances
Individuals who are facing emotional distress related to their personal finances may benefit from implementing a few strategies to calm their anxious thoughts. These strategies may not resolve financial concerns, but they may help mitigate some of the physical and mental effects of financial anxiety.
Journaling about stress and other mental health challenges related to finances
According to research from the Greater Good Science Center at the University of California, Berkeley, journaling can have a significant impact on mental health. Writing down one’s thoughts about financial stress may help people see it as something tangible that can be addressed one step at a time.
Practicing mindfulness to overcome financial stress
Another strategy that may help to calm anxious thoughts about finances is mindfulness meditation. For many people, anxious thoughts may come and go throughout the day. It can be easy to dwell on a thought that arises and let it color your mood for the day. With mindfulness, many people find that they can observe thoughts as they come and go without identifying with them. While this practice may not prevent anxious thoughts from arising, it might reduce their duration, thereby mitigating their effects on mental health.
Breathing exercises for worries over finances
Some people find that breathing exercises can reduce their anxious thoughts and feelings, whether they’re related to finances or other sources of stress. One exercise that may help is called box breathing, which, according to Harvard Medical School, is often used by military and law enforcement personnel. While there may be several modifications of this practice, one way to begin is to take a deep breath in for 4 seconds. Next, you can hold your breath for 4 seconds, exhale for 4 seconds, and then hold your breath again for 4 seconds.
How a mental health professional can help with financial stress
In addition to using strategies to calm anxious thoughts about financial stress, some people may benefit from speaking with a licensed mental health professional. A therapist can often help relieve some of the mental and physical symptoms of financial stress, in addition to addressing any comorbid mental health disorders, such as anxiety or depression.
Seeking online therapy for concerns about money
Some people experiencing financial hardship may feel hesitant to sign up for traditional in-person therapy due to money worries. However, help is still available through online therapy, which is often more affordable than in-person therapy without insurance coverage. Online therapy allows people facing financial worries to receive evidence-based mental health support from home or anywhere with an internet connection. With online therapy, people facing money anxiety can communicate with a therapist via audio, video, or live chat, which means they don’t have to spend money on transportation costs to commute to a therapist’s office.
Aside from offering affordable care, online therapy has robust support in the literature on therapeutic methods. In one review of various clinical studies, researchers found that online therapy was effective for depression, generalized anxiety disorder, panic disorder, and substance use disorder among other mental disorders.
Takeaway
Can financial worries lead to health problems?
Financial difficulty can lead to a variety of physical symptoms, such as tension headaches and digestive problems. Some people may also experience panic attacks, which can create various physical symptoms, including dizziness and shortness of breath.
How can you address thoughts related to financial anxiety (financial stress)?
Some people may find it helpful to implement a mindfulness practice, which may help them identify negative thoughts as they arise and pass. While this practice may not have an immediate impact on a person’s finances, it might reduce the impact of anxious thoughts when they arise in one’s consciousness.
How can you get help with debt and other money problems?
Financial advisors can often help people with various financial concerns, including reducing debt and saving for the future. They can typically offer personalized advice depending on various factors, such as the savings a person has in their bank account, the amount of debt they carry, and their overall financial goals. Financial advisors may first help a person develop an emergency fund and pay off high-interest debt and then help them begin accumulating wealth through a financial plan with diversified investment strategies.
What does financial anxiety feel like?
Financial anxiety can affect a person’s well-being in various ways. For instance, one person may lack mental clarity and have trouble concentrating while someone else may experience mood swings and irritability. Other symptoms may include headaches, persistent fear of running out of money, and shame over not having enough money.
What is the biggest financial worry of most individuals?
Individuals may face financial challenges from various sources. According to a Gallup poll, inflation is the biggest financial concern for most Americans. Other financial problems include housing costs, student loans, unexpected costs, and personal debt.
Why do I have so much financial anxiety?
There could be many different reasons for financial anxiety, including spending habits, childhood experiences, personality traits, or an underlying mental illness such as generalized anxiety disorder or obsessive-compulsive disorder, for example. A financial counselor or mental health professional could help you build confidence and reduce money-related anxiety.
What's the biggest financial mistake many people make?
Most people lack financial literacy when they’re young, so they may miss out on opportunities to save money and invest early in their adult lives. Other mistakes may include overspending, ignoring bills, and failing to make a budget or financial plan.
How do you change a bad financial habit?
There could be a number of different ways to change a bad financial habit, including identifying the habit, understanding why you have this habit, and setting small, measurable goals to break the habit. Financial education and financial counseling can also help you regain control of your financial situation.
How do you treat financial anxiety?
Deep breathing exercises and other coping strategies may provide temporary relief. If your anxiety persists or becomes overwhelming, it could be important to seek professional help.
How much does a financial therapist cost?
It varies. While many are more affordable, some financial therapists charge up to $800 per session. People who seek support online to reduce financial stress may pay a fraction of this cost. Likewise, some non-profit organizations may offer free resources and/or low-cost financial therapy services.
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