Here Are 7 Ways to Deal With Financial Anxiety

The world is reeling with the effects of a coronavirus or COVID-19 pandemic and naturally the economy is bearing the major brunt of the crisis. Shutting down of various businesses, widespread unemployment, pay cuts are some of the immediate effects of this crisis, while the long-term effects are still being evaluated.

So, it is natural to feel a bit lost, confused, worried or even scared about your personal and financial circumstances.

What is Financial Anxiety?

Financial anxiety can be defined as a ‘constant fear or worry about your finances, triggered by either external or internal factors.’ It isn’t always caused by lack of funds in your bank account. Sometimes, a feeling of unpreparedness or lack of understanding of financial terms or numbers might also give rise to anxiety about your finances.

But the good news is that there are a number of simple ways in which you can manage the stress and feel more confident and calm.

How to Manage Your Financial Anxiety and Stress

1. Acknowledge and Accept the Current Situation

The first step is to acknowledge and accept the fact that you, like thousands, are in the middle of a global crisis which is affecting your finances and your relationship with money. This acceptance will help you focus on taking charge and acting on it.

2. Review Your Personal Budget

Next, consider reviewing your personal budget and figure out whether that is the reason why you are feeling financially anxious. By reviewing your monthly expenditures, you will know whether you need to reduce your spendings, or pay-off your dues, in order to feel more relaxed about money. Repeat this process of reviewing as often as you would like, until you feel more in control.

3. Build or Contribute to an Emergency Fund

If you already have an emergency fund, then it is a good time to evaluate the health of the fund. But, if you don’t have one, then this is the time to create an emergency fund and contribute as often as possible to it until you have at least three to six months’ worth of living expenses in that fund. The knowledge that you have money aside for emergencies will help calm down your anxieties and stress.

4. Focus on Building Healthy Financial Habits

Challenge yourself to save a small amount of money everyday. Saving as little as Rs 10 everyday can help you save Rs 300 in thirty days. Cook at home to save up on food delivery costs or start exercising daily to keep yourself fit and save up on medical bills later on.

5. Educate Yourself with Financial Knowledge

If complicated financial terms and numbers trigger your financial anxiety then start reading up about those concepts. Sometimes, breaking complicated concepts into simpler terms can bring a lot of mental calm and relief. Try it and you will know!

6. Stay Away from Emotional Triggers

Know what are the factors that make you feel anxious about money. Maybe it’s the shopping website you use to visit frequently or emails about the share market. Identifying and distancing yourself from these triggers might be a good idea during a time like this.

7. Talk to Your Partner, Family or Community

And finally, don’t hesitate to talk to your partner, family or community about your thoughts and anxieties. Sometimes, all you need is a good conversation to feel better. You might even get some good ideas to make some extra bucks!

Remember, worrying about money won’t deplete your worries but will certainly deplete your health. Instead, follow these simple steps and try to calm your fears and feel confident about your finances. You can also reach out to us via Facebook, Instagram, Twitter and let us guide you out of your financial worries.