Strategies for Managing Financial Stress and Anxiety 

Do one thing: If you aren’t already consistently saving, it’s time to set up a separate account to begin building up a cash cushion. Why? Having some money set aside can help ease anxiety, especially in tough times.

Dealing with Money Issues

Money stress can be the worst. Sometimes we beat ourselves up for not saving enough or spending too much. And the anxiety that can bubble up from living with high-interest credit card debt is enough to keep anyone up at night and drag them down during the day.

Financial Mistakes Don’t Define You

If we can’t get up the gumption to change our financial habits, all that stress and anxiety can start to feel overwhelming. If this sounds like you:

• Give yourself a break.
• Offer yourself some forgiveness.
• Don’t allow those mistakes to define you. 

Certified financial planner Kevin C. Feig, a CPA and founder of Walk You To Wealth, knows financial anxiety can negatively impact your emotional and physical well-being, and the relationships you have with others.

Lack of Financial Confidence

“While there is no perfect solution, the stress often stems from financial matters where a client lacks confidence,” Feig says. “For example, stress may arise due to credit card debt when someone doesn’t know how to plan a way out, or retirement can feel hopeless when faced with countless investment options.”

Here’s the good news. You can absolutely learn from your missteps and change your financial habits. Consider these money moves to help reduce the stress you may be feeling over your finances.   

Identify Your Money Mindset

Laura K. Cook, CFP, with Flourish Financial Life Planning, says she takes time at the beginning of a new client relationship to figure out the root causes of someone’s financial stress.

“I like to start with some deep work around their money mindset,” she says. “This allows me to meet them where they are and help them work through their stress. Often, a client’s anxiety or financial stress stems from some deep-seated beliefs around money or some fears that were shaped early on.” (If you’re looking for some insight into your money personality, you can take this free Moneytype diagnostic. Trust us. You’ll feel seen. )

Take Baby Steps

Once she understands where someone is coming from, Cook encourages clients to seek small bits of financial education at a time. “By starting small, they don’t put as much pressure on themselves, and it allows their knowledge to build on itself, helping them to gain confidence over time.”

Set Up Money Appointments

If looking at the bills or bank statement causes untold stress, Cook encourages clients to:

• Set aside a specific time to take on the task, whether that’s paying bills or mapping out a budget.
• Create an environment that is familiar and comfortable.
• Play relaxing music and even fix a cup of tea.
• If what you see on the paper causes anxiety, then try to eliminate all other sources of stress around you so you can focus and make smart decisions.

Make Your Savings Automatic (and Meaningful)

We’ve said it before, and we’ll say it again. Automating your savings will help you put away much more money than relying on yourself to remember to take that extra step with consistency every month. 

And while it’s important to set up automatic withdrawals that move some of your money from a checking account to a high-yield savings account regularly, you need to make sure you know what you are saving for, notes Filip Telibasa, CFP, owner and planner at Benzina Wealth. He recommends doing the following:

• Start with core values and beliefs.
• Define what is most important to you.
• Once you establish this as a foundation, you can move on to defining specific, tangible goals that bring these things to life.

Seek Guidance From an Expert

Sometimes, getting yourself out of bad financial habits can take the help of a professional, which could be a financial planner, a money coach, an accountant, or some combination, Telibasa says. 

Before signing a contract, make sure you check out the financial professional by answering these questions:

1. Do they have the right designations and experience specific to your needs?
2. Are they legally required to act as your fiduciary? 
3. How do they make their money?

“By having someone on your side you can trust, you will have less financial stress for a few reasons,” Telibasa says.

• First, they will put a plan in place with illustrations to display that you are in good shape. If you’re not, they will help you get there.
• Second, by having an expert in your corner, you don’t need to listen to all of the outside noise and therefore will worry less about your finances.

Give Yourself Grace

When it comes to money matters, Cook says one of the best things you can do is to always be kind to yourself. “If you are in financial trouble, it didn’t happen to you overnight, and it will take time to work through it,” she explains. “Often, our financial troubles are a result of some really traumatic times in our lives, or maybe they aren’t even our fault, so we should show ourselves grace when we are trying to improve our situation.”

With reporting by Casandra Andrews