People consistently cite money as one of their biggest sources of worry and stress. Although a realistic appraisal of your personal finances may spur you to take positive actions, such as creating a budget or starting a savings plan, facing up to financial challenges can be daunting.
Out-of-control worrying can be paralysing. How can you tell when your worrying has got out of hand? One sign is that you can't turn off negative thoughts when you try to fall asleep or turn your attention elsewhere. If concerns about money have been weighing on your mind, the steps below can help you take charge of both your finances and your mental wellbeing.
Feeling more in control of your financial future helps set your mind at ease. To do that, you need to make a mental shift from worrying to problem solving. That requires analysing your money problems and developing a practical plan for dealing with them. Here are a few examples.
If you're worried about monthly bills, draw up a budget. It may seem like a difficult job but taking the time to list your income and identify your expenses in detail will be well worth the effort. Try one of the many free budgeting apps to help with the task. If more money is going out than is coming in or if you don't have enough left over for savings, look for areas where you have some control over what you spend. For example, you may be able to economise on food shopping, clothing, or entertainment. Or you may be able to switch to a cheaper phone, TV, or Internet plan.
If you're worried about crushing debt, devise a debt-reduction plan. Depending on your situation, you can consolidate high-interest credit card debt into one lower-interest card or personal loan. You can increase how much you pay off each month if you have the means. Or you could contact a creditor to try to work out a more realistic payment arrangement.
If you're worried about retirement, focus on building your long-term savings. Learn about your investment and superannuation options so you can make informed decisions. You’ll probably be contributing to a superannuation fund, which your employer is required to pay into. You can also make additional voluntary contributions to boost your retirement savings. Setting up automatic deductions from your bank account is a simple way to invest regularly in your future.
If you have trouble finding a solution, don't give up. Although you may not be able to eliminate every source of financial stress, there are usually things you can do to improve your situation. Consider seeking advice from a financial professional. Your assistance program (or EAP) may be able to suggest additional resources.
Once you've taken steps to get your finances under control, it's time to set your money worries aside. In some cases, however, you may find that it's hard to let go of the habit of worrying. When that happens, telling yourself to stop worrying may backfire. Ironically, if you're always on the lookout for signs of worry, you're actually focusing attention on the very thoughts you want to curtail. Instead, gently nudge your attention in a calmer direction with these strategies:
Know your worry triggers - then plan ways to manage them. For example, if your anxiety about the economy tends to spike after a news-watching binge, you could limit your news consumption to no more than 30 minutes a day. If you find yourself compulsively checking an investment app, you could uninstall it from your phone.
Be physically active. Any form of exercise can be a distraction that takes your mind off money worries. Plus, research shows that as little as a half hour a day of aerobic activity — such as walking, running, or cycling — can help relieve stress and improve your mood.
Practise mindfulness. Simply put, mindfulness involves focusing on your moment-to-moment experience. If a concern crosses your mind, you notice it, but then you move on to the next moment. This helps prevent you from getting mentally stuck on a worrying thought.
Recognise warning signs. If money worries persist without being addressed, they can start taking a toll on your health and wellbeing. Different people respond to chronic worry and stress in different ways. Some may resort to substance use, poor eating habits, or may have trouble sleeping. Others feel demoralised, cranky, or overwhelmed. Contact your organisation’s assistance program for resources and support to help you find ways to address your money worries.