How to not stress about money so much? Try these 9 tips
Clinically reviewed by Dr. Chris Mosunic, PhD, RD, CDCES, MBA
Are you constantly worrying about money? Learn the signs and symptoms of money stress, and how not to stress about money with 9 tips to stop the struggle.
Many people find themselves trapped in money stress. Fears about security, future wellbeing, and worries about providing for ourselves and our loved ones can overshadow our daily joys. Fortunately, there are ways to manage the stress surrounding money and strategies to cope.
What is money stress?
Money stress isn’t just the practical aspects of managing finances but also the emotional and psychological impact of those financial responsibilities and our needs for security, stability, and freedom.
When there's a disconnect between our financial reality and our financial aspirations or needs, money stress arises. It can be the stress of living paycheck to paycheck, the anxiety of saving for retirement, or the fear of unexpected expenses. Societal pressures to achieve certain financial milestones can amplify feelings of inadequacy or failure.
The characteristics of money stress
Understanding money stress is important because it's not just a financial issue—it's a holistic one that can impact all areas of life. By recognizing what money stress looks like and how it feels, we can start to take steps to address it, moving toward a healthier relationship with our finances and ourselves.
Overwhelming financial obligations: Feeling like your financial obligations are constantly piling up can lead to a sense of hopelessness and overwhelm. This might involve debts, monthly bills, or unexpected expenses.
Fear of the future: Many people experience money stress as a fear of not having enough for the future, whether it's for retirement, emergencies, or personal goals like home ownership or travel. This fear can paralyze decision-making leading to anxiety about every financial decision.
Constant juggling of bills and expenses: Trying to keep up with financial commitments without feeling like you're making progress can be exhausting. This can lead to a cycle of stress that's hard to break.
Emotional and physical symptoms: Money stress can lead to issues such as sleep problems, anxiety, depression, and even physical symptoms like headaches or digestive issues.
7 symptoms of money stress
Financial anxiety can be extremely personal, so it's important to recognize the symptoms of money stress to address it effectively. Keeping an eye out for these signs can help you identify when financial worries are taking a toll on your wellbeing so you can start managing money stress and financial anxiety more effectively.
1. Constant budgeting and account monitoring: If you find yourself obsessively checking your bank accounts or budgeting apps because you fear overspending, it may be a sign of money stress. While being aware of your financial situation is good, excessive monitoring can contribute to stress and anxiety.
2. Guilt of overspending: Feeling guilty about even minor purchases is a common symptom of money stress. This guilt can arise even from necessary spending, such as groceries or utilities, reflecting an underlying worry that you're not managing your finances correctly, making every financial decision a source of anxiety.
3. Exhaustion: Financial stress can be physically and emotionally draining. If you're constantly worried about money, you may find yourself feeling tired more often, even if you're getting enough sleep, impacting your energy levels and overall mood.
4. Worrying over income: A constant concern about whether your income sources are stable or sufficient can lead to anxiety over job security. You might feel pressure to work more hours or take on additional jobs.
5. Depression: Persistent money worries can lead to feelings of hopelessness and depression, and can affect your self-esteem and sense of security, leading to a negative outlook on life. It's important to seek support when financial stress is impacting your mental health.
6. Avoidance of financial planning: Money stress can lead some to avoid financial planning or dealing with financial issues. This can include ignoring bills, and bank statements, or avoiding discussions about finances. Although this may seem to reduce immediate stress, it can lead to increased anxiety and problems over time.
7. Social withdrawal: Embarrassment about your financial situation can lead to social withdrawal, and you may feel unable to participate in social activities that involve spending money. Isolation caused by money stress can worsen feelings of anxiety.
Why do I stress so much about money?
Understanding why you stress about money can help you manage this stress more effectively, allowing for a healthier relationship with your finances.
Personal financial history
Your background plays a significant role in how you perceive and manage money today. Experiences from childhood, such as observing your parents' financial habits or facing economic hardships, can deeply influence your attitudes toward money, regardless of your current financial situation.
Societal expectations and comparisons
We live in a society that often equates financial success with personal worth, leading to constant comparisons with peers. This can make your financial situation feel inadequate, increasing stress and dissatisfaction.
Economic conditions
Fluctuations in the economy, such as recessions, job market instability, and rising costs of living, can create an environment of financial uncertainty that can make it difficult to achieve financial stability.
Lack of financial literacy
Without the knowledge to budget, save, invest, or plan for the future effectively, financial decisions can feel overwhelming.
Debt
Debt can be a common source of financial stress, feeling like a constant weight that impacts your ability to make financial progress and creates anxiety about repayments.
Unclear financial goals
A lack of direction can make it difficult to feel secure in your financial decisions. This can lead to stress and anxiety if you feel you're not making progress toward a stable financial future.
Fear of the unknown
Concerns about unforeseen expenses, economic downturns, or potential health issues can create financial stress, as it feels impossible to prepare for every potential financial challenge.
How to stress less about money: 9 stress-relieving tips to ease money worries
By addressing both the financial and emotional aspects of money stress, you can find a healthier, more balanced approach to managing your finances with less anxiety.
1. Identify your stressors
Begin by pinpointing exactly what causes you stress about money. Is it debt, saving for the future, or not feeling secure in your income? With these stressors identified, you can take targeted actions, such as creating a debt repayment plan or exploring ways to increase your income.
💙 Before jumping into any potentially challenging reflection, it can be helpful to take a Pause to Breathe and clear your head.
2. Get organized
Track your spending, understand your debts, and know your income. Use budgeting tools or apps to get a clear picture of where your money is going to help lessen financial anxiety.
💙 Settle Down by Single-Tasking and approach each area of your finances individually to reduce overwhelm.
3. Create a financial plan
Develop a plan that outlines your short-term and long-term financial goals. Break these goals into actionable steps, like setting aside a portion of your income for savings each month or cutting unnecessary expenses. A plan can provide a sense of direction and progress, reducing the overwhelm of financial planning.
💙 Aligning your financial plan with what’s most important to you can help you stay committed. Find inspiration with our The Why Behind Your Goals session.
4. Be flexible
Financial situations can change, so regularly review and adjust your financial plan to reflect your current situation and goals to help you respond to change.
5. Use stress-reducing tools
Try mindfulness techniques like meditation, deep breathing exercises, and yoga to help calm your mind and reduce anxiety during moments of financial stress.
💙 Practice a 10-minute Mindfulness session with The Daily Calm to help lower your stress.
6. Avoid comparing yourself to others
Everyone's financial journey is unique, so avoid comparing your financial situation to that of friends, family, or strangers on social media. Focusing on your own goals and progress is more productive and less stressful.
💙 If you’re struggling to not compare yourself to others, this Constructive Comparison session can teach you a healthy way to look at those around you.
7. Seek support
Talk to a financial advisor for professional advice, join a support group for people facing similar financial challenges, or simply discuss your worries with trusted friends or family.
8. Celebrate small wins
Recognize and celebrate your progress, no matter how small. Whether it's paying off a small debt, saving an extra amount than usual, or sticking to your budget for the month, acknowledge these victories to feel motivated and reduce stress.
💙 Build your gratitude practice and Celebrate the Now with help from Daily Jay.
9. Educate yourself
Take advantage of free resources online, attend workshops, or read books on financial management to decrease the stress of financial decisions.
How to not stress about money FAQs
Why do I struggle financially?
Struggling financially can have a variety of reasons. It might begin with a lack of financial education, leaving you unsure of how to effectively budget, save, or invest. Economic factors such as job loss, underemployment, stagnant wages, and rising living costs can contribute to financial difficulties. Personal decisions, like accruing debt through loans or credit cards, can compound these issues. Unexpected life events—such as medical emergencies, divorce, or natural disasters—can derail even the most carefully laid financial plans.
How do you cope with financial difficulty?
Coping with financial difficulty requires a focus on both immediate solutions and long-term strategies to navigate the present and plan for a more stable financial future.
Assess your financial situation thoroughly, identify essential expenses, and create a budget to manage your money more effectively.
Cut unnecessary expenses to save money.
Seek additional income sources, such as part-time work or freelance opportunities.
Communicate with creditors or seek professional financial advice to manage debt more sustainably.
Explore community resources for financial help with necessities like food and housing.
What is money dysmorphia?
Money dysmorphia refers to a distorted perception of your financial situation, where you might feel perpetually financially insecure, regardless of your actual economic status. This can lead to behaviors and attitudes toward money that aren’t aligned with reality, such as excessive frugality, fear of spending, or constant anxiety about financial ruin, even when you have sufficient resources. It might also show up as overspending or living beyond your means due to an overestimation of financial stability.
Money dysmorphia can stem from factors including past financial trauma, societal pressures, or personal beliefs about money and success. To address money dysmorphia, acknowledge your perceptions and work toward a healthier, more realistic understanding of your financial situation, perhaps with the help of a financial therapist or counselor.
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