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10 Ways to Deal with Money Anxiety (That Aren’t Just Building A Budget)

It isn’t breaking news that money is one of the things people worry about the most.

Studies published in early 2020 show that 77% of Americans worry about money. But I’m willing to bet that we are more worried about money than ever before. Inflation caused by the pandemic, political uncertainty, and the threat of global war driving up gas prices hasn’t helped.

But traditional advice hasn’t caught up to reality. Budgets don’t work in a world where people spend more money getting to work than they make once they get there.

So what is the solution? First, you can learn to manage stress and anxiety around money. Then, try doing what you can to make your situation just a little bit easier.

The Impact of Financial Stress

Stressing about money can have a huge impact on your relationships and mental health. Studies even show that a 1% rise in inflation can make some people more likely to experience mental health problems.

To put it into perspective, as of February 2022 the inflation rate in the U.S. is 7.9%. The toll this will take on our mental and physical health is alarming.

Worrying about money can lead to…

• Insomnia or trouble sleeping.
• Depression.
• Weight gain.
• Relationship problems. (Money is one of the things couples argue most about!)
• High blood pressure.
• Headaches.
• Gastrointestinal problems.

To save money and stick to a tight budget, it is only natural to limit social interactions. You may also cut out activities that make you feel good. Both of these things can cause feelings of isolation and lead to unhappiness.

Money stress can also cause people to find unhealthy ways to blow off steam. This could look like drinking too much, abusing drugs, and even overeating. Though these behaviors might help people feel better in the short term, they all lead to even lower levels of health. (If you are struggling with addiction, please reach out to a professional for support.)

10 Tips to Deal with Money Anxiety

It is clear that finding ways to deal with financial stress is key to living a happy life.

But most advice on how to worry less about money isn’t helpful. I know that building a budget is not your problem. The true problem is that your budget simply doesn’t work in today’s reality. This is not your fault!

So what can you do to feel less stressed about money? Here are 10 realistic tips to try.

1. Talk About Your Worries With Friends and Family

Money is always an uncomfortable thing to talk about. But you have to vent out the stress to someone.

Sharing your anxiety about money with people you trust is a proven way to feel better. The people you share with may be able to help you find a solution you hadn’t thought of before. They may also be going through something similar, which can help you feel less alone.

If talking about money makes you nervous, check out this article from The Balance for more helpful tips.

2. Get Professional Support

People don’t reach out to professionals when they are stressed about money because they assume it will be expensive. But there are many ways to get free expert advice and support.

Here is a list of free resources:

• USA.gov: Find free advice on dealing with debt, managing unemployment, and government benefits that can help you pay for food and housing.
• Financial Planning Association
• National Foundation for Credit Counseling
• Financial Counseling Associate of America
• Foundation for Financial Planning
• The National Association of Personal Financial Advisors: This tool will help you find a financial advisor near you. Many financial advisors offer free services.

You may also be able to find free or low-cost mental health support through your insurance. Turning to a professional therapist is another great way to help deal with financial stress.

3. Talk to Your Employer

Though day-to-day life is more expensive than ever, we are also experiencing a national labor shortage. What does this mean for you?

It gives you leverage. And now is the time to use it.

It may not always feel like it, but your employer needs you. The labor shortage caused by the pandemic has made it clear how important everyday workers are to the success of national companies.

Now is the time to talk to your boss about money. If rising gas costs make it too expensive to get to work, tell them! Ask for a raise. Or ask if the company can cover the cost of your commute.

It is natural to feel nervous about this conversation. But if you keep things professional, talking it out can only help.

Here are a few tips to make asking for a raise easier:

• Ask for a specific and reasonable raise. Research what other companies are paying for your position. An easy way to do this is to check out similar positions on online job boards to see what other companies pay. You can then ask to be paid the same amount. Or, you could ask for a raise to match the level of inflation.
• Show your value. Have you taken on extra responsibility? Do you always pick up extra shifts? Think about what makes you a valuable part of the team. Then, be prepared to speak up for yourself when talking to your boss.
• Stay calm and confident. Remember that this is a business decision. Your manager probably feels nervous about this conversation too. Don’t let your emotions get the best of you.
• Be open to creative solutions. If a corporation is blocking your boss from giving you a raise, don’t give up. They may be able to ease your financial burden in other ways. Try asking for better healthcare benefits, more flexible hours, help to pay for transportation to and from work, etc.

If your employer is unwilling or unable to pay you more, it may be time to consider looking for a job elsewhere.

4. Reframe Your Thoughts About Money

In many cases, the cause of your financial stress may be out of your control. But you can always control how you feel about money. A study from John Hopkins Medicine shows that people with a positive outlook on the world are less likely to have a heart attack. Building a positive relationship with your finances can literally make you healthier.

This is called your “money mindset.” No matter the balance in your bank account, you can have a positive money mindset or a negative money mindset.

A negative money mindset can look like:

• Seeing your money problems as a personal failure
• Obsessing about money constantly
• Feeling like your situation will never change

A positive money mindset can look like:

• Knowing you are not defined by your bank account
• Staying confident in your ability to overcome financial challenges
• Being comfortable with small steps and slow change

Start to shift your feelings towards money with these tips. You can also check out this list of 20 journal prompts on money to start exploring your money mindset.

5. Boost Your Self Esteem

Financial issues can make you doubt yourself. You may feel like you’ve failed. But feeling down on yourself about money can make it even harder to overcome your financial struggles. (This is called a feedback loop, which I talk more about in my book.)

Setting daily goals is a great way to boost self-esteem. Give yourself two to three things to do each day to work towards living the life you want to live. Creating small wins for yourself will help you feel more confident about all areas of your life.

You can find other ways to improve your self-esteem in this article from the Mayo Clinic.

6. Meditate to Calm Racing Thoughts

If you feel like money troubles are all you can think about, try meditation. There are a ton of benefits to meditating regularly.

When it comes to managing money anxiety, meditation can help you…

• Learn to stay present and in the moment.
• Get a new perspective on your financial situation.
• Reduce negative thoughts.
• Increase patience to deal with life’s challenges.
• Focus on the happy moments.
• Build skills to lessen anxiety.

I recommend checking out Headspace’s guide to meditation to ease financial stress to learn more.

7. Do not Skip Sleep

If you’re stressed about money, you may be sleeping less than usual. You probably don’t need me to tell you that this is not good. But it is important to know that studies show that there is a 30% increase in anxiety after a sleepless night. Your prefrontal cortex (a part of the brain responsible for reducing stress) is also deactivated after less sleep.

Therefore, sleeping for seven to nine hours a night is important. Here is a study by Statista Research Department, showing the stress rate in adults based on how much sleep they get:

via Statista

To help you get the quality sleep you need, try…

• Dimming the lights at least 30 minutes before bedtime.
• Turning off sources of blue light at least 1 hour before you want to go to sleep. This means putting your phone down!
• Avoiding alcohol and nicotine, which can both mess up your sleep.
• Snacking on a handful of almonds to help increase melatonin. Melatonin is a hormone naturally produced by your body that makes you feel sleepy.

8. Eat Healthily

“Eating healthily helps reduce the effects of stress,” says Matthew J. Kuchan, a senior researcher at Abbott.

By opting for a healthy diet, you build a strong foundation in your body. This means that your body will be more able to deal with stress hormones like cortisol and adrenaline.

You can start eating healthy by incorporating leafy veggies, food rich in omega-3s like walnuts, fruits, and proteins. Additionally, drinking plenty of water can help you handle stress. It is thought that being properly hydrated can promote the production of serotonin, a chemical that helps us feel happy.

9. Move Your Body

A few minutes of exercise can do wonders for your body and mind.

Physical activity increases the production of endorphins. Endorphins are the feel-good hormones of the brain and can leave you feeling less stressed. Exercise is also a great way to help calm your mind and tire out your body, which will allow you to get a night of better sleep.

Try to move your body for 15 to 30 minutes a day. A few free ways to exercise are…

• Going on a brisk walk or jogging around the neighborhood.
• Dancing.
• Playing a chase-based game with your kids.
• Following a YouTube bodyweight workout or yoga class.

10. Take a Break

It is easy to feel like you don’t deserve to rest while you are caught in money anxiety. But taking time away from life’s big problems is a must. It can help you recharge your batteries and even discover new, creative ways to approach your financial stress.

So make sure to take some time just for yourself. This doesn’t need to be expensive! It could look like treating yourself to something small like a bar of dark chocolate. Or it could be something free like taking a quiet afternoon to put your feet up. All that matters is that it feels good!

The Bottom Line

Financial stress doesn’t have to take over your life. Even if paying off debt or making more money is out of reach, there are plenty of healthy ways to deal with money anxiety. Just remember to be kind to yourself, and put one foot in front of the other. Things will get better.

If you would like more tips on living a healthier, happier life, check out my book, Life Hacks: Simple Steps to a Healthier Life. Please also consider giving this article a clap and following @wellnessmadeeasy on Medium for more easy ways to improve your life.