We all worry about money once in a while. Did I pay way too much for that new jacket? Should I still buy raspberries when they’re $6.50 a punnet?! Is my HECS debt too high? 

Money is a big part of our life every single day, from coffee runs to major investing decisions for the future. 

Some days we love money, and some days we wish it never existed.

But when negative feelings about money build up excessively, it can lead to financial anxiety. 

Financial anxiety is a constant fear of not having enough money to lead your life. It can make you feel overwhelmed and powerless.

And while financial anxiety isn’t an official diagnosis, it’s a very real experience for many people and impacts their daily life.

What can money anxiety look like?

Fear of insufficiency - a constant fear of never having enough regardless of one's financial position. This can lead to being excessively frugal, even when it comes to basic needs.

Added mental load on daily decisions - thinking about money non-stop can lead to analysis paralysis with day to day financial decisions eg. going back and forth on whether or not to go to social outings when they come up 

Avoidance - It feels easier to just not look at bills or bank statements, or talk about money with family or friends. This reduces money anxiety in the moment, but not in the long run.

Hoarding or overspending - this might sound counterintuitive, but because shopping is a temporary stress relief, money anxiety can lead to impulse spending, which only increases money anxiety. It can become a vicious cycle.

Money anxiety is more likely to affect those who have experienced financial instability, unsteady income, increased financial responsibilities, or social pressures.

What are the effects of money anxiety?

Money anxiety can impact both your physical and mental health.

Things like: having trouble sleeping, aches and pains, headaches, muscle tension, reduced work-life-balance, increased conflict with friends and family. 

In some cases, it can also lead to having a weakened immune system, depression and anxiety disorders.

How do you tackle money anxiety?

1. Ground yourself 

Sometimes, it can be easier to start by tackling the physical symptoms of money anxiety.

Simple breathing exercises like the box-breathing method or the 4-7-8 breathing method can do wonders in your daily routine.

Meditation is another way to practise mindfulness and manage symptoms of money anxiety.  

2. Challenge your narrative

Anxious thoughts can often spiral out of control. 

One minute you’re thinking about how much to spend for your friend's birthday, the next minute you’re wondering whether or not you’re a responsible spender, and if you’ll ever be able to repay your mortgage.

Yep, it’s surprisingly easy to fall down the rabbit hole.But when you find yourself in this situation, try to challenge your viewpoint. 

How true is this thought?

Is it helpful?

Am I assuming the likely scenario or a worst-case scenario?

Questioning the unhealthy narrative we start building can help us rationalise the situation we’re in and pull away from a fight-or-flight mode.

3. Understand your financial triggers

The more you can understand about what’s driving your financial anxiety, the more you can learn to manage it.

Are you finding yourself being immensely frugal and stressing over every dollar?

Or does thinking about debt trigger your symptoms?

Perhaps it’s when you’re in situations where it’s easy to compare against others?

Naming your emotions and where they’re coming from will help make them less intense and challenging.

4. Talk to someone you trust

Sharing your financial stress helps you vocalise your concerns to yourself and start to understand them better.

It will also lighten the mental load you’re carrying. 

This might even be a professional such as a counsellor to help you manage the anxiety, and build a healthier relationship with money.

5. Tackle avoidance head on by building a budget

This ones a bit like doing an ab workout - painful in the moment, but you’re left feeling much better off once its over.

If you’ve been avoiding looking at your finances, rip off the bandaid and take a look at where you’re sitting with a financial stocktake.

From there, use the Flux Budgeting Academy to set a plan for your money.

It might be a confronting and scary exercise at first, but having a budget will give you a greater sense of control over your money.

You don’t need to do it all in one go. You can always chip away at the task so that it’s not overwhelming.

6. Seek professional help

The tips above are a good starting point, but they’re not always enough.

It’s completely okay to reach out for help if you need it.If you need extra support with financial anxiety, consider seeking professional help either through psychologists or financial counsellors.

They’ll be able to offer personalised advice and work with you over an extended period of time to help you reestablish a healthy relationship with money.

Money Smart has a map that you can use to find a financial counsellor near you.

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‍National Debt Helpline - 1800 007 007

Small Business Debt Helpline - 1800 413 828

Mob Strong Debt Helpline - 1800 808 488