Coping With Financial Anxiety
Written by Dr. Kristen Roman
Have you noticed lately that every time you go to the coffee shop, grocery store, clothing store, or out to eat, you’re shocked by the total cost at the end? Have you and your friends been sharing stories of how ridiculous the cost of something was recently? As a result, you may be experiencing rising anxiety and financial stress that leaves you feeling paralyzed and unable to enjoy the things you’re spending money on. If so, you’re not alone.
With the cost of living rising at a faster rate than compensation rates at work, especially in places like New York City, many people are feeling less financially secure and more worried about their spending. To help with this worry, you might consider some of these ideas:
1) Check the facts - rising costs might lead to the automatic assumption, “I can’t afford this” and lead you to start going to extremes. Before doing so, it’s important to take stock of your actual financial situation and become aware of your spending habits in order to determine whether your money anxiety is actually justified. Many people avoid looking at their bank accounts or credit card statements due to the anxiety it brings them. As overwhelming as it may be, knowledge is power in this situation, and will help you to accurately assess your financial needs. Start with a baby step, such as just checking what the balance is in your account, to start reducing avoidance and working towards your goals. Expense tracking apps or a financial planner can also help with increasing awareness and knowledge about your finances.
2) Stop catastrophizing - catastrophizing means to jump to the absolute worst case scenario and to exaggerate how terrible it will be. An example would be, “I’m going to go bankrupt and have to move back in with my parents.” While certainly some people’s spending habits could result in this outcome, often we’re focusing on a much more farfetched possibility, rather than something that’s actually probable.
3) Make a list of what you value splurging on the most vs. where you don’t mind cutting back and being more frugal. Perhaps you want to save up your money for traveling with friends, but are willing to ditch your Seamless habits for cooking at home more often. This will allow you to be more intentional about how you’re spending money, and to remind yourself that you don’t need to stress because you’ve budgeted for an activity that means a lot to you.
4) Practice mindfulness - bring yourself back to the present moment by focusing on something going right now using your 5 senses (e.g., noticing the delicious taste of your dinner out at a restaurant, taking in the smell of the ocean as you sit on the beach vacation you booked). If you’ve already decided to pay for something, you might as well enjoy it, and refocusing on the present moment will help prevent your money anxiety from interfering with this.
Want more support for your financial anxiety? Meeting with an anxiety therapist at Elevate CBT can help you learn strategies to reduce unjustified worry, work towards more balanced thinking about your finances, identify what matters most to you to spend money on, and to stay in the present moment. Contact Us today with any questions, or Click Here to schedule your free 15 minute consultation to see how Anxiety Therapy can help.