Unfortunately, money is something most families worry about. Whether it be worries about paying bills and school fees, or perhaps just worrying about your financial future, everyone has concerns. However, sometimes those concerns can be a little harder to deal with, make you heart and mind race, put pressure on your relationships and family. If you’ve experienced a similar phenomenon, you might be suffering from financial anxiety.
CUA’s financial wellbeing spokesperson and the founder of Financy, Bianca Hartge-Hazelman has some advice for empowering yourself to take back control in these situations.
If money worries keep you awake at night
“A racing mind at night is a sure sign you’re dealing with anxiety. Sometimes the magnitude of our financial position can intimidate us. In fact, new research from CUA revealed that the number one financial unknown that worries us most is our monthly expenses. This was followed by what our home loan interest rate is and our total debt level.”
“If sleep eludes you due to money worries, get up and write them all down on a piece of paper. Being able to clearly see your financial position written down can help you gain some perspective, get out of your head and identify what changes you might need to make to improve your financial wellbeing.”
If money worries affect your personal relationships
“Another sign you or someone you love could be suffering from financial anxiety is if they become withdrawn or more hostile towards those around them. Money is one of the leading causes of friction in romantic relationships, friendships and family relationships. The CUA research found as many as one in five women admit to distrusting their boyfriend’s financial acumen when he’s responsible for the household finances, with a quarter of wives saying the same.”
“When you’re going through a stressful period, it’s often the support we get from those closest to us that we need the most. It’s also important to take control of your own financial situation and act to fix it. It’s great if you can do this yourself but if not, seek help such as free financial counselling, paid financial advice or chatting to your personal banker will help you start to get back on track.”
If you’re overspending
“Overspending is actually a big sign you’re suffering from financial anxiety. It can become a vicious cycle for people suffering from financial strain to seek temporary relief from anxiety by funding purchases they can’t afford. But in the end, the behaviour only increases the feeling of anxiety.”
“Set a ‘spending’ budget and stick to it. While it can be difficult, avoiding the places that enable your overspending can help break the habit in the long run. Ultimately, try not to feel guilty about the occasional overspending slip up which could trigger you to go back to old habits. Everything in moderation, as they say.”
If you feel overwhelmed, out of control or are avoiding your financial reality
“Using things like pay day loans, credit cards and Afterpay for our everyday transactions makes one in five (23%) of us feel stressed, irresponsible or out of control, and this feeling is a sure sign you’re suffering financial anxiety. Avoidance can be a natural reaction to feeling overwhelmed, particularly with something as consequential and hard to stay on top of as money, so it’s no surprise that the CUA research found 16% of people avoid their bank statements as they make them feel nervous. If you’re doing this, or paying for everyday purchases in an unsustainable manner like using credit when you can’t afford it, then it’s time to take a step back and assess your financial position to reduce your associated anxiety.”
“The only way to stop being fearful of your financial situation is to face up to it. Sit down with all your bills, write everything down, including when they’re due or overdue. If you realise you aren’t able to afford all the bills, it’s worth making some calls to discuss what arrangements you can put in place to gradually clear your debts. Banks and debt collectors would rather see a repayment plan put in place and are likely to try and work with you.”
You might also like:
How financial stress can affect your mental health
More than a quarter of Australians are stressed or anxious
6 ways to solve your biggest financial worries
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