Money anxiety is one of the most common forms of financial difficulty, and one of the least talked about. It is not the same as being in debt or being unable to pay bills, though it often coexists with those things. Money anxiety is the persistent, low-level or sometimes acute stress about finances that affects sleep, decision-making, relationships and general wellbeing. It is extremely common in the UK, cutting across all income levels.
Avoidance makes it worse
The most common response to money anxiety is avoidance: not checking your balance, not opening letters, not thinking about the numbers. This feels better in the short term because you are not confronting the source of the anxiety. But avoidance almost always makes things worse over time. Problems grow in the dark. The gap between your imagined financial situation and your actual one tends to widen, and the eventual confrontation feels more overwhelming as a result.
Check your accounts on a regular schedule
One of the most effective things you can do is establish a regular, brief habit of checking your accounts. Once a week, spend five minutes looking at your balances and recent transactions. Not to analyse deeply or make decisions, just to look. Over time, familiarity reduces fear. The numbers become less charged, and you are no longer operating on the basis of imagined figures that are often worse than reality.
Understand the difference between the feeling and the fact
Money anxiety often involves a significant mismatch between how bad things feel and how bad things actually are. The feeling of financial danger can be present even when the objective situation is manageable. Writing down what you actually know, as distinct from what you are worried about, is a useful exercise. Facts are workable. Vague dread is not.
Take one small action
Anxiety about money tends to diminish when you do something about it, even something very small. Opening a letter you have been avoiding, looking up your balance, making one phone call, setting up one small transfer to savings. Action breaks the cycle of avoidance and the feeling of paralysis that accompanies it. The action does not need to be large to make a difference to how you feel.
Get support if it is affecting your life
If money anxiety is significantly affecting your daily life, your sleep or your relationships, it is worth speaking with your GP or a mental health professional. Financial stress is a recognised contributor to anxiety and depression, and support is available. You do not need to be in financial crisis for this to be appropriate.
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Ask Fin provides general guidance only. If money anxiety is significantly affecting your mental health, please speak with your GP or a qualified mental health professional.