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If you’re feeling anxious about your finances or the economy, you’re not alone. Every year, the American Psychological Association releases a study on the top stressors in the country, and every year, money claims a top spot. There always seems to be something: inflation, dips in the stock market, an upcoming election—all on top of major life moments like getting married, sending your kids to college, or buying a house. Whether you’re worried about the big picture or your own individual challenges, financial anxiety can take a toll and keep you from enjoying what you’ve already earned.
Financial anxiety often comes from the fear of the unknown. It’s this anticipatory anxiety that can be hard to fight, manage, and recognize, says Megan McCoy, LMFT, CFT-I, a financial therapist and professor at Kansas State University. (Notably, this type of anxiety is different than financial stress caused by specific hardships.) Breaking through your anxiety is all about building the confidence to face the uncertainty and make financial decisions, something McCoy notes women may not give themselves enough credit for doing a lot of already.
Meet the experts: Megan McCoy, LMFT, CFT-I, PhD, is a financial therapist and financial planning professor at Kansas State University. Ashley R. Agnew, CFT-I, is president of the Financial Therapy Association and director of relationship development at Centerpoint Advisors.
Even if you’re not feeling particularly worried today, getting a head start on these tips from financial therapists can help you navigate any worries you have in the future. “When you feel like you are in a good place, that’s where you can really start to build your foundation,” says Ashley R. Agnew, CFT-I, president of the Financial Therapy Association.
Tips For Dealing With Financial Anxiety
1. Find sources you trust.
Last month, my roommate’s boyfriend announced that a recession was near, and that I should be worried. Before I decided to freak out, I texted a colleague and financial journalist, who provided more context—and told me not to stress.
It’s easy to get anxious about finances and the economy if you don’t feel like you have a good grasp on them. This is especially true when it feels like everyone is offering a different opinion on these things.
The best way to cut through all the noise is to find sources and experts you trust like a financial planner or therapist or use resources like Investopedia or Nerdwallet, says McCoy. (Both sites are beginner-friendly and jargon-free, she says. But they do work with sponsors, so if you’re using them to pick a credit card, she recommends cross-checking on other sites.) Through turning to these kinds of sources, you can also build trust in yourself.
2. Focus on the tangible issues you’re facing.
A lot of anxiety comes from ambiguity or uncertainty, reiterates McCoy. Instead of focusing on the major potentially impending but maybe not happening issues facing our global economy, start small and think about the specific financial challenges you’re dealing with first. Are you trying to save more? Do you want to tackle some debt? Write down your goals. These are the things that you can most directly control, she says.
Laying out what you want to focus on can help you make a plan, either with or without a financial adviser.
3. Face your finances.
You might be avoiding pulling up your credit card statement and reviewing your spending habits right now, but it’ll help your anxiety (and your wallet) in the long run. You can identify areas where you’re doing great—and maybe some areas where you want to reign it in. Both good to know, says Agnew.
One way to keep up with your habits is to download an app like Rocket Money or Goodbudget that help you track spending, set budgets, and put away savings. Start tracking now, and you can turn to their insights in times of financial freak-outs.
4. Try money journaling.
Money journaling is a lot like regular journaling, just about your finances. And it could help you identify patterns in your spending, what exactly is making you anxious, and also allow you to just get your fears out, says Agnew.
It can be open-ended, or you can focus on questions like: What are three financial decisions you made today? What do you want to forgive yourself for financially? What are you proud of when it comes to your financial decisions?
You can also use your journal to visualize your financial future. Where do you want to be ten years from now with money? What are your goals? “Visualization is the most powerful free tool that we have access to,” says Agnew.
5. Create speed bumps for spending.
Another thing that causes money anxiety is spending too much too quickly. The way we spend has changed, says Agnew. Humans went from bartering to paying in cash to writing checks to swiping our cards to tapping our phones. Sometimes this means that we don’t think about our purchasing as deeply, so creating our own speed bumps can slow us back down.
While Agnew doesn’t suggest you try and barter with the Lululemon cashier, she recommends adding alerts on your credit card if you spend above a certain amount or doing a quick mindfulness exercise like box breathing or the 54321 method before hitting “buy now.”
6. Have a money mantra.
You can customize a money mantra to calm yourself down (and maybe also manifest) amid a financial freak-out, says Agnew. Some of her examples are: “I am in control of my decisions,” “I’m great at so many things; it’s okay to not be perfect at everything,” or her personal mantra, “I know that my purpose is far greater than working and paying bills. I am more than my career.”
7. Work with a financial adviser or therapist.
If you feel like you could use some help, you can always talk to a financial advisor—and you have quite a few options.
Certified financial planners, or CFPs, can help you work on your finances holistically and long-term, says McCoy. This means they can help with budgeting, insurance, tax implications, retirement, and more. Plus, they are fiduciaries, which means they took an oath to put their client’s needs above their own. They get paid either by commission, fee, a percentage of your assets, or hourly rate, but you can also find pro bono planners through the Financial Planning Association or XY Planning Network.
Accredited financial counselors, or AFCs, are there for short-term needs. They can help you overcome a financial struggle like paying off student loans or help you achieve a short-term goal like deciding between job offers, says McCoy. You can find one through the Association for Financial Counseling & Planning Education.
Finally, financial therapists are either mental health or financial professionals that have extra training about the intersection of money and well-being. If your financial problems feel emotional—like self-sabotaging your spending, constantly feeling stressed about money, or putting yourself down when it comes to your finances—a financial therapist can help you navigate the psychological struggles that come with money, says McCoy.
“A big reason financial therapy helped me was that I used to have such mean thoughts about my own financial literacy or ability and say things like ‘I’ll never be able to figure out my finances,’” she explains. You can find a financial therapist through the Financial Therapy Association.
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