If thinking about money makes your stomach drop, you’re not alone. Many, if not most, people feel financial stress, especially when everyday costs feel high and a strong financial future feels far away.
While we can’t wave a magic wand and make money stress disappear, we can give you some tips and tools for dealing with that stress. At TruChoice, we’re here to help you find your financial footing; without shame, striving for perfection, or expecting you to have it all figured out. We’ll work with you, so you can feel more informed, supported, and confident.
What is money anxiety, and how does it impact you?
In a nutshell, money anxiety is when thinking about financial decisions, debt, bills, spending, saving, etc creates increased stress, worry, or fear. That stress can show up in different ways. For some, it might make you avoid looking at bills or at your account balance at all. On the flip side, it might make you doomscroll your finances, checking balances and transactions multiple times a day. Worrying about having enough to pay your bills, save for your goals, or deal with an unexpected cost might keep you up at night, leading to health impacts. Money anxiety might lead to emotional spending, where you’ll make impulsive purchases as a way of taking control and feeling better for a moment. Money anxiety can also cause guilt after making a purchase, even if it is something needed.
Remember – anxiety about money is common, and chances are good that a lot of your friends and family are feeling it too. It doesn’t mean you’re bad with money or that your financial picture is hopeless; it just means that you’re living through a tough financial period – but one that won’t last forever.
Why are you feeling this way?
Right now, we’re all experiencing higher inflation, gas prices, and housing costs. Those higher prices at the pump, the grocery store, and for monthly bills can have a big impact on how you view money and your financial future. It’s easy to feel stuck when it seems like there’s more going out than coming in. Even if your financial picture is stable, it might not feel that way. Most of us weren’t taught the basics of personal finance, budgeting, and money management. This can lead to feeling on your own when it comes to learning how to handle money, which can leave you isolated, anxious, and sometimes looking in the wrong direction for guidance.
The most important thing to remember is that you are not alone, and you don’ t need to do it all without help. Whether it’s managing debt, learning to save, or figuring out how to build a budget, we’re here to help ease that money stress and be your financial partner. Let’s start with some ideas on how to build small habits that will help reduce stress and increase confidence.
Realistic Ways to Reduce Money Stress
Check your finances weekly—not constantly. While it’s important to keep tabs on your accounts, checking balances or bills multiple times a day is rarely the right solution. Unless you are tracking a particular transaction or need to quickly check a balance before making a purchase, avoid checking your accounts throughout the day. Instead, try to set aside a specific money check-in each week to review balances, bills, and upcoming expenses. Keep the timing consistent, so you’re less likely to forget or put it off.
If you’re worried about losing sight of something, set yourself reminders for signigifant items like when your rent, car payment, and other key bills are due. You can also set up e-alerts in online banking to send you a text when you get deposits, have upcoming loan payments, or go below a certain balance threshold. That way, you’re making the info come to you instead of constantly manually checking.
Focus on one small win at a time. Keep yourself from feeling overwhelmed by setting one small goal at a time. Examples could include saving $25, paying one bill early, reviewing one subscription, or setting/reviewing your budget. Once you complete your goal, set another one. The key is to avoid piling expectations on yourself and keeping your goals realistic, achievable, and relevant to you and your lifestyle. Taking goals one at a time will help you build positive momentum. Don’t forget to celebrate your wins!
Automate one helpful habit. Setting up recurring bill payments or an automatic funds transfer is a simple way to make sure money gets where it needs to, without having to take care of each task one by one. If you’ve set a goal to save, make it easy by enrolling in Round Up – an automatic savings tool that moves the leftover change from each debit purchase into your savings account.
Create a no-shame spending category. Make sure your budget includes fun. Even if money is tight, try setting aside a small amount each pay period to treat yourself. Maybe that means putting money aside each week to have dinner out with friends once a month, saving up for concert tickets, getting a new audiobook, or even just paying for a streaming service or music subscription. Trying to tighten your belt too much can lead to a cycle of emotional spending, guilt, and may make you want to give up on your goals. Leaving a small space in your budget just for you will help keep you motivated while you work toward those wins.
Talk to someone before stress snowballs. If you’re feeling weighed down by money, don’t know how to make ends meet, need help figuring out how to get started, or just want to talk with someone about your budget, we’re here to help. We never judge, and there’s nothing we love more than seeing you succeed. Your goals are our goals.
Top tips to build money confidence
Know your numbers. As scary as it might sound, one of the most important ways to feel like you’ve got a handle on your money is to know what’s coming in and what’s going out. Look at your income after taxes and other deductions and make sure that it covers everything you need to pay for. If you’re underwater or find yourself borrowing from Peter to pay Paul, you may want to consider a side hustle or second job until things smooth out.
Build a small emergency cushion. When you can, start building an emergency savings account. Whether you use an automated program like Round Up or make a point of saving a few bucks every pay period, the key is to start small and leave the money in the account for a true financial emergency.
Learn one concept at a time. Nobody learns everything about money management overnight. Like setting financial goals, learning about money is something you should do in steps. Tackle one concept that’s top of mind for you and learn more about it. So whether it’s learning about credit scores, learning how to build a budget, or how loans work, look for reputable sources and dive in. Our Financial Wellness blog is a great place to start learning!
Take action before over-researching. As you learn more, be careful about over-researching solutions. Sometimes, it’s easy to get deep in the weeds, which can actually keep you from starting to make changes. Keep your research manageable and actionable and make sure that you take concrete steps to achieve the goals you’re setting for yourself. If you need help getting started or just need someone to give you a reality check, we’re here and we’re ready to dive in with you!
Easy Strategies You Can Try This Week
Here’s some goals to get you started; commit to one and stick with it. You’ll be surprised at how much taking real steps will ease that money anxiety!
- Check your credit report and score. You can get a free copy of your credit report from each reporting agency each year. If you’re wondering what impacts your score, reach out to us and we’ll go over it with you – plus, we’ll give you a personalized plan to help get where you want to go!
- Review one recurring payment or subscription and make sure you still value and use the service you’re paying for. If not, cancel it and celebrate the money you’ll be saving yourself each month!
- Set up an automatic transfer into savings. Even $5 a week is a good way to get started on saving! Open or rename a savings account for a specific goal, so that you can remember why and what you’re saving for.
- If it fits your budget, pay a bit extra toward one small loan or credit card balance.
- Schedule a quick 15-minute money check-in with yourself or your household. Keep it brief so you’re not overwhelmed and then put that same time aside every week to keep yourself on track.
AND REMEMBER: we are here for you. If you need a partner to help you make sense of it all, we’d love to chat. Reach out to us today!
