Back in early May, Jenn Brent shared with me a blog that she had written and wanted to share with others. Today, she shares another one. Enjoy!
Everyone experiences financial anxiety. Whatever your social status is in life, it's natural that some issues surrounding money haunt you in one way or another. What's important is you take the necessary steps to tackle the problem and not allow it to take over your life.
Research shows that around 85% of Americans feel some level of anxiety around personal finances, so you're not alone in the struggle. And while it's common, it's not insurmountable, either, so long as you recognize what triggers your anxiety and do something about it.
So, here are some ways to cope with money anxiety:
Educate yourself about money matters
One of the best ways of freeing yourself from financial anxiety is making an effort to become more financially literate. Money and finance can be intimidating, sure, but it doesn't always have to be. Getting acquainted with personal finance books written in plain language eliminates all the guesswork, allowing you to gain a deeper understanding of more technical concepts like debt repayment or the mental aspects of personal finance. You may also want to look into blogs, podcasts, and YouTube channels run by professionals where they talk about money and personal finance. Try your best to absorb all the information like a sponge, so you know how to tackle any financial problem you may encounter in the future.
Create a sense of order
Managing your finances will be much easier if you create a sense of order. Otherwise, you'll only experience more stress. While the idea of listing down your debts and interest rates may seem daunting, it's always best to face them head-on to solve your problems once and for all. You can start by creating a list of your debts to stay both organized and accountable. Ticking off anything from that list, no matter how small, can give you some semblance of comfort and progress moving forward. If doing it manually doesn't work for you, you can always lean on apps for further assistance or look into automated debt programs from your bank. Debt consolidation is an excellent option that can help you simplify your finances, and even save you money in the long run. These types of low-interest personal loan programs help set a time frame that works to fit your specific budget. Instead of having to manage and pay a string of billers regularly, consolidating multiple balances into a single monthly payment simplifies your finances and saves you further headaches. You can also download free apps for both managing such anxieties and organizing your finances – all with a quick search on your phone.
Enlist the help of an advisor
If all else fails, or if your debts and payments are too overwhelming to tackle, there's nothing wrong with seeking help, especially from competent professionals like financial advisors. Delaying consultations will only exacerbate the problem, so the best course of action is to get in contact with professionals to strategize a game plan. If financial anxiety is taking over your life, it may also be worth paying a visit to a financial therapist or counselor to identify the root of your financial issues. They may be able to shed light on finding out your relationship with money.
Understand your relationship with spending
While it's not always true that having more money solves your problems, it may be worth reflecting on whether or not having a more cushy checking account makes you feel better, or if the money could be better spent on things that make you feel happier or safer. Having a deeper understanding of your relationship with money and spending can help you get to the root of the problem and hopefully, begin finding ways to solve it.
Song of the Day: ‘Money Machine’ by James Taylor
Quote of the Day: “Never spend your money before you have earned it.” —Thomas Jefferson
Exclusively written for brandonsteiner.com
By Jen Brent