Money anxiety: 5 tips to help you stop worrying about money
Clinically reviewed by Dr. Chris Mosunic, PhD, RD, CDCES, MBA
Learn about the causes of money anxiety and the effects this stress can have on your life. Plus, 5 tips to help you stop worrying about money and start living.
Money anxiety affects many people. A constant fear of not having enough money to meet basic needs or secure your future can lead to constant stress over financial decisions, savings, and debt. It can impact your ability to enjoy life and make confident financial decisions. Understanding money anxiety and its main characteristics can help you manage it effectively and reduce its hold on your life.
What is money anxiety? When you can’t stop stressing about money
Money anxiety is a persistent fear that can leave you feeling overwhelmed and powerless over your money. Financial stress can deeply impact your life, but by identifying money anxiety, you can seek out strategies and support systems to improve your financial wellbeing.
Persistent worry: Money anxiety can bring a constant, often intrusive worry about finances. This might be concerns about having enough in your bank account to pay bills or fears about future financial stability and retirement savings. The worry can affect every decision related to money.
Fear of insufficiency: Many people with money anxiety live with a fear that they’ll never have enough money, regardless of their current financial status. This fear can drive compulsive behaviors such as excessive saving or being so frugal that they go without basic pleasures or necessities.
Impact on daily decisions: Money anxiety can influence daily decisions like what groceries to buy or whether you can afford a social outing. It can lead to decision paralysis, where the fear of making the wrong financial choice prevents you from making any decision at all.
Avoidance behaviors: Not looking at bank statements, delaying bill payments, or avoiding discussions about money with family members can feel like it reduces immediate anxiety, but it often worsens financial problems in the long run.
Physical symptoms: The stress associated with money anxiety can cause headaches, stomachaches, insomnia, and fatigue. These symptoms can interfere with your ability to manage day-to-day tasks, including managing finances.
Impact on mental health: Money anxiety can severely impact mental health. It’s often linked to depression, anxiety disorders, and high levels of stress. The constant worry can erode your sense of wellbeing and lead to feelings of hopelessness and despair.
6 causes of money anxiety
The causes of money anxiety can involve personal history, societal pressures, and economic influences. Identifying the causes of your money anxiety can help you develop strategies to manage your feelings and improve your financial and emotional wellbeing.
1. History of financial instability
Growing up in poverty, witnessing parental struggles with debt, or living through financial crises can leave lasting impressions. These experiences can instill a deep fear of similar financial hardships, regardless of your current financial situation.
2. Job loss or unsteady income
Lacking a stable, predictable income can make it difficult to plan for the future or feel secure in your financial situation, particularly for those who freelance, work in the gig economy, or face job loss.
3. Economic instability
Broader economic conditions, such as recessions, inflation, or market volatility, can exacerbate money anxiety. Even if your financial situation is stable, fearing the impact of broader economic downturns can cause stress and anxiety.
4. Increased economic responsibility
Buying a house, having children, or supporting aging parents can increase money anxiety, especially if you're concerned about your ability to meet these obligations in future.
5. Lack of financial education
Without the knowledge or skills to budget, invest, or plan for retirement, you might find it difficult to make sound financial decisions, leading to a sense of helplessness and anxiety.
6. Societal pressures
Exposure to messages that equate success with wealth and possessions can create pressure to achieve a certain financial status, which can lead to anxiety and stress about money.
7 effects of money anxiety
Money anxiety can lead to significant disruptions in both mental and physical health, relationships, and overall quality of life.
1. Trouble sleeping
Money anxiety often leads to difficulty falling asleep and staying asleep. The mind races with financial worries at night, preventing the relaxation necessary for a good night's sleep. Over time, this lack of rest can worsen stress and anxiety, creating a vicious cycle.
2. Impact on physical health
Chronic stress, including that caused by financial worries, can bring physical symptoms such as headaches, muscle tension, stomachaches, or chronic pain. Money anxiety can lead to more serious health problems, including high blood pressure, heart disease, diabetes, and a weakened immune system.
3. Lack of work-life balance
Money anxiety can cause a compulsion to work excessively to earn more or be secure in a job. This can lead to neglecting hobbies and relationships, diminishing overall wellbeing.
4. Conflicts with family and friends
Money anxiety can strain relationships, as financial stress can become a cause of disagreements. It may lead to tension with a partner over spending habits, resentment toward financially dependent family members, or avoiding social situations due to fear of spending money.
5. Overspending or fear of spending
Some people engage in overspending as a temporary relief from stress, while others develop a fear of spending money altogether, even on necessities. Both can worsen financial stability and deepen anxiety.
6. Avoidant behaviors
A common effect of money anxiety is the avoidance of financial responsibilities, such as not checking bank accounts, ignoring bills, or delaying financial planning. While this may provide short-term relief from anxiety, it ultimately leads to greater financial problems and stress.
7. Reduced mental health
Money anxiety can cause or worsen mental health issues such as depression, anxiety disorders, and stress.
How to stop worrying about money and start living
Addressing money anxiety involves managing both your finances and your emotional wellbeing. By dealing with money anxiety effectively, you can alleviate stress and build financial stability and peace of mind.
1. Get grounded: Practice relaxing breathing exercises and meditation
Breathing exercises: Incorporate simple breathing exercises into your daily routine to help calm the mind and reduce stress levels, making financial decisions feel more manageable. Try relaxation techniques like the 4–7–8 method, where you breathe in for four seconds, hold for seven seconds, and exhale for eight seconds.
Meditation: Meditation can increase mindfulness, helping you stay present and reduce worries about future financial uncertainties.
💙 To calm your anxious mind, try Jay Shetty’s Reset With the Breath meditation.
2. Create financial goals: Set clear, achievable objectives
Short-term goals: Begin with shorter-term goals that can be achieved within a few months to a year. Saving for an emergency fund, paying off a small debt, or setting aside a small amount of money for a personal reward can give you a sense of accomplishment and reduce anxiety.
Long-term goals: Set long-term financial goals, such as saving for retirement, buying a home, or funding education. These goals require more time and planning but are important for financial stability and peace of mind.
💙 Learn how to get more clarity on your Financial Intentions during this talk with personal finance expert Suze Orman.
3. Make a budget: Track finances and control spending
Track your spending: Record where your money goes each month, from the smallest purchases to the largest bills, to help you identify areas where you can cut back.
Allocate funds appropriately: Allocate funds for essential expenses first, such as housing, food, and utilities, then determine how much you can save. What’s left can be used for spending on things you enjoy, like travel or hobbies.
💙 To stay calm during this exercise, try listening to a soothing soundscape like, Rain on Leaves.
4. Schedule money check-ins: Regularly review your financial situation
Weekly or monthly check-ins: Review your budget, track your spending, and assess progress toward your financial goals to help you stay on track.
Family financial meetings: If you share financial responsibilities with a partner or family, include them in these check-ins. Open communication about finances can prevent misunderstandings and share the emotional burden of financial planning.
💙 Practice the art of mindfully checking in with yourself (and your finances) during The Check-In Tool session of the Daily Jay.
5. Get professional help: Consult a financial advisor or therapist
Financial advisor: A financial advisor can offer personalized advice on savings, investments, and retirement planning tailored to your financial situation, helping you develop a strategy to achieve your financial goals.
Therapist: If your money anxiety is deeply rooted or affecting your mental health, a therapist can help you understand and work through the emotional aspects and provide you with coping mechanisms to manage stress.
6. Manage stress and money anxiety
Taking control of your financial and emotional wellbeing is a journey, and it's okay to seek help along the way. Explore our resources on managing stress and anxiety for more tips, strategies, and support.
💙 Managing Anxiety on the Go is a great meditation to help you shift your attention away from stress.
Money anxiety FAQs
How do I calm my anxiety over money?
To calm anxiety over money, it’s important to address both the emotional and practical aspects of financial stress.
Practice mindfulness and stress-reduction techniques, such as deep breathing exercises, meditation, and yoga, to help soothe anxiety.
Educate yourself on managing money to empower you and reduce feelings of helplessness.
Create a realistic budget that includes savings for emergencies.
Set specific, achievable financial goals to help focus your efforts and make financial challenges seem more manageable.
Seek support, whether from trusted friends, family, or professionals like financial advisors or therapists, for relief and guidance.
Why does money make me anxious?
Money can symbolize security, freedom, and the ability to meet our needs and desires. Anxiety about money frequently stems from the fear of not having enough to provide for these needs, the uncertainty of the future, or past experiences of financial instability, such as debt, job loss, or poverty. This anxiety can also be fueled by societal pressures to achieve a certain standard of living. Money anxiety can be triggered whenever financial decisions need to be made, leading to a cycle of stress and worry.
What is money anxiety called?
Money anxiety is often referred to as financial stress or financial anxiety. It includes a range of emotional responses to managing money, worrying about financial security, or feeling overwhelmed by financial obligations. This type of anxiety can even be part of broader psychological conditions, such as generalized anxiety disorder, depression, or stress-related disorders. Recognizing and addressing money anxiety is important for both financial and mental health, as it can significantly impact overall wellbeing and life satisfaction.
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