You are not alone if you worry about money. Financial anxiety is a more common form of anxiety than ever.
According to the American Psychological Association’s 2022 Stress in America Survey, 87 percent of respondents cited inflation as a source for significant stress. People from all walks of life are worried about the rise in fuel and food prices. According to the researchers, no other issue has caused so much stress since 2007, when the survey was started.
You may feel anxious if you have financial or money-related stress in your life. Anxiety can have a negative effect on your quality life.
It’s not possible to fix your bank account in the same way you would like. However, it is possible to reduce stress and resolve the situation. You can manage your money-related anxiety.
Continue reading to learn about money anxiety and its causes and how to manage it.
What are the signs?
In simple terms, money anxiety is when you are worried about your income, or afraid that something might happen to your finances. It’s an emotional reaction to your financial situation.
Money anxiety does not necessarily mean that you don’t have any money. Even though you may have a good income, it doesn’t mean that you don’t worry about your mortgage or worrying about whether your savings will be enough to pay for an unexpected medical expense or any other significant expenses.
Despite paying all your bills on time, you can’t shake the feeling that you need to save more for retirement.
These are signs that your money anxiety is growing more serious:
Aches and pains: You might feel a bit sick when you check your bank account.
Avoidance: You might not be able to pay your bills for several weeks.
Analytic paralysis: You may find yourself stuck when you compare the costs of different options.
There is no work-life balance. You might feel that you must work every hour in order to survive.
Rigility: This is when you might be rigid about your budget and then get frustrated whenever you need to make minor adjustments.
Rumination: Perhaps you are unable to stop thinking about your retirement plan and checking the stock market several times per day, whether in bed, at work or while on errands.
Trouble sleeping? You may wake up at night worrying about the future, your finances, and whether you will ever retire.
It is where did it come from?
Anxiety about the future can lead to financial anxiety. This is a fear that you won’t have the resources to meet your needs, or face new challenges.
- If you have:
- History of deprivation
Poverty can cause trauma. It’s not surprising that people who have lived without food or housing for a long time may feel worried about their financial future. To save money, you might go to great lengths to ensure that you have enough cash in the future.
If you have ever experienced financial setbacks, you might be more likely to believe that the worst case scenario is possible because you’ve been through it.
This trauma can last for generations. Your parents might stress the importance to save money and earn money if they lived in poverty. You might feel pressured to achieve a certain amount of wealth for the sake of your family.
- Income fluctuates between low and high
- Because you have less income, you are more likely to worry about money.
You probably don’t have any savings or home equity if you live paycheck-to-paycheck. You might be unable to pay your monthly bill on time, which could prevent you from purchasing dinner or getting enough gas to get to work. This would cause you to go further behind.