It’s easy to get stressed about money. Life is expensive.
Even in the best of times, your own finances may not be all that healthy, and there’s always something around the corner that you’re going to want or need to spend money on, from summer vacations to car repairs to back-to-school season to hospital bills or vet bills to home repairs.
If you’re frazzled and feeling overwhelmed by money anxiety, what should you do? Keep reading for eight actionable solutions to a serious problem.
1. Run Toward Your Financial Problems, Not Away From Them
Sit down with your bills and a calculator and figure out how big of a financial hole you’re in. Determine how much debt you have, when your bills are due and when money is coming in. Your problems might not be as bad as you think — or they might be worse.
“In my experience, the greatest source of financial stress and anxiety is the fear of the unknown. We’re often terrified of digging into our numbers and finding out bad news,” says Chris Janeway, a financial advisor and the founder and president of Fourth Point Wealth, a financial management firm in Newport Beach, California.
“The reality is, the truth is a liberating thing. More often than not, the fear is worse than the facts of anyone’s situation and once we pin down the facts, we can create the steps to progress forward,” he says.
If you’re really in a financial bind, being more aware of how bad things are may make you feel even worse. But Janeway is right: No one can get out of a financial hole without understanding how deep it is.
2. Create a Financial Plan and Share It With Your Household
Revamping your budget — or crafting a budget for the first time — is your next step.
Assuming your financial plan involves cutting back on expenses, you need to make sure that you’re not the only person in your home fighting what can be a very lonely battle.
If you have a spouse, partner or teenagers, looping them into the financial picture could help combat your stress — and keep everyone from blowing up your budget.
[Related:Read: How to Create a Financial Plan Like a Pro]
“My wife and I, each year, use a date night to sit down with our computers and map out holiday travel, shopping lists and a budget,” Janeway says.
“It can seem tedious, and it is, but we leave that date night with a plan that builds trust and reduces an incredible amount of stress as we head into the holidays,” he adds.
3. Remain Positive Regarding Your Financial Situation
Kelan Kline, who runs the personal finance blog The Savvy Couple with his wife Brittany, says that positive talk is a vital part of financial self-care and that you shouldn’t beat yourself up.
He offers the classic example of not having enough money for the holidays.
“If you don’t have as much money as you’d like to spend on gifts, decorations and other holiday purchases, don’t get down on yourself,” Kline says.
“When trying to cut down on spending, focus on the positive. For example, instead of saying, ‘I can’t afford that Christmas gift I want to give,’ reframe it as, ‘I have the opportunity to give a homemade gift from the heart.’ This change in language can help you remain relaxed and gain a sense of empowerment,” he adds.
Think of it this way: If if you’re paying your rent or mortgage every month and feeding your family, you’re succeeding. Maybe not as much as you want, but you’re holding your own.
4. Remember You’re Not the Only One Experiencing Financial Problems
Heed some advice from Joshua Zimmelman, managing director of Westwood Tax & Consulting, a virtual accounting firm based out of Rockville Centre, New York.
“Remember that you’re not alone,” he says. “Financial anxiety is super common. According to the American Psychological Association, money issues are a major source of stress for most adults.”
A 2023 survey by FinFit with Salary Finance of 2,000 Americans found that almost 60% of those making less than $55,000 a year feel financial stress,– and nearly 40% of those making more than $200,000 also experience it.
5. Make Some Room in the Budget to Splurge
If you like to go to the movies or you refuse to give up a beloved coffee drink but you know the money would be better spent on something else — don’t take it so hard.
[Related:This Is the One Thing Americans Refuse to Stop Spending On]
Staying within your budget is important, but you shouldn’t ignore financial self-care. If you never reward yourself, you might get burned out on saving money.
6. Identify the Causes of Bad Financial Habits
Do you always pick up the check when dining out with friends or have food delivered when you could be picking it up yourself or making it at home?
“Identify the circumstances and triggers that lead to unhealthy spending,” says Naomi Angoff Chedd, a licensed mental health counselor and director of counselor support services at Counslr.
“Do you order things that you want — but may not need — online? Do you buy on impulse when you’re in the checkout line?” she says.
If you’re mismanaging your money and can figure out the cause of it, working to develop better financial habits should give you more funds in the bank and reduce your money stress.
7. Take Care of Yourself
“Healthy eating, sleeping, regular exercise and relaxation will contribute to your ability to remain calm, clear-headed and more able to find solutions to your problems — even your financial ones,” Chedd says.
She suggests identifying activities “that are fun, relaxing and do not cost money — or cost very little. Going for a walk in the woods or along the water can do wonders for your mental, physical and financial health.”
[READ: Fun Things to Do in Your Free Time That Cost Nothing]
8. Consider Getting Professional Help
If you’re floundering, get help, says Darren Moore, a licensed marriage and family therapist in Columbus, Georgia. He says that might mean getting financial or medical help — or both.
“A financial advisor can help develop the most effective financial strategy, and a mental health professional can help discuss the impact these changes might have on the couple and family relationship,” he says.
Of course, if money is tight, you may feel like the last thing you can do is pay for professional help.
But if your money situation and anxiety is really bad, you should try to do something to fix both problems.
“There are different kinds of money problems, ranging from true poverty to having too much credit card debt to not being able not afford a vacation this year — and everything in between. But no matter what the circumstances, if you are unable to make ends meet, it will wear you down, physically and emotionally, and in every other way,” Chedd says.
If you feel like it’s professional financial help you need for your money stress rather than a therapist, there are free places to go for that, says Howard Dvorkin, a CPA and chairman of Debt.com.
“Your bank or credit union probably offer free online budgeting tools that can help you squeeze every last dime from your income. And nonprofit credit counseling agencies often offer free, in-depth debt analysis over the phone,” he adds.
“Do-it-yourself solutions are mostly played out,” he says. “There are only so many coupon and gasoline apps you can download.”
More from U.S. News
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8 Ways to Manage Money Stress originally appeared on usnews.com
Update 07/17/24: This story was published at an early date and has been updated with new information.
