12 Ways You Can Reduce Your Money Anxiety in an Afternoon
24th May 2023
When you’re experiencing financial stress, no matter how big, it can be tough to shake off as you go about your day-to-day life. While it’s a common feeling for most, even those considered “well off”, it’s definitely one you want to avoid when you can, so you can enjoy peace of mind.
If you're experiencing financial stress for any reason, there are steps you can take to reduce your money anxiety in a single afternoon. Here are ten quick and easy tips that can make a big impact.
Don't Ignore the Problem
1. Review your bank statements
The first step to reducing money concerns is to review your bank statements. Look at all the transactions that have taken place in the last month or so. Identify any unnecessary expenses or subscriptions that you may have forgotten about and cancel anything that you no longer need or use. This process will not only help you save money but also help you feel more in control of your financial issues.
2. Deal with debt first
If you have debt, it's essential to deal with it first. It's hard to know what to pay first. Try to concentrate on high-priority bills like your mortgage and utilities. Once you've covered these bills, you can review the other accounts you must pay.
High debt levels can cause significant financial stress and lead to poor mental health. Start by prioritising your debt repayments and paying off high-interest debt first.
You Don't Have to Manage Financial Stress Alone
Reducing money stress can be a challenging task, but it's important to remember that you're not alone. Many people experience financial problems, and there are steps you can take to reduce them.
3. Seek professional advice
If you're struggling with financial concerns, please don't wait for things to get out of control. It may be helpful to seek professional advice. Many free services are available, such as debt charities or financial advisors, who can provide advice and support.
They can help you create a plan to manage money, relieve stress, and improve your financial situation.
4. Negotiate bills and expenses
Negotiating bills and expenses can help you save money and reduce financial pressures. Start by contacting your service providers, such as your internet or mobile phone provider, and negotiate a better deal. You can also negotiate lower insurance premiums, utilities, or other service rates. Every pound you save will help you regain control.
Keep it Simple With a Budget
5. Identify your financial goals
Identifying your financial goals is another way to reduce financial stress. Clear goals will give you something to work towards and help you stay motivated. Your goals may include paying off credit card debt, saving for a holiday, investing in a retirement fund, or simply being able to spend money without the additional stress of the consequences. Whatever your goals are, write them down and create a plan to achieve them.
6. Create a budget
Creating a monthly budget is one of the most effective tools for managing money and reducing financial stress. It helps you plan your income and everything you're paying to understand your spending patterns. Start by listing all your income sources in your bank account and then all your outgoings. Categorise your expenses into essential and non-essential categories. From there, create a budget that allocates your income to cover all essential expenses and leaves room for non-essential expenses.
7. Create a savings plan
Creating a savings plan is a key step in reducing financial stress. Even if you can only save a small amount each month, starting somewhere is important — you can always save more money later. Decide on a savings goal, such as an emergency fund, and set aside a fixed monthly amount in a savings account. No matter how small the amount, saving money will help you build a financial safety net and put you on track for better spending habits
8. Plan for unexpected expenses
A low bank balance can be a significant source of financial stress. Plan for emergency expenses by setting aside a fixed amount each month towards an emergency fund. This will give you peace of mind and ensure you're prepared for spending money unexpectedly, such as on car repairs or vet bills.
9. Track your spending
Tracking your spending is an essential part of reducing financial struggles. It helps you identify areas where you may be overspending and adjust your budget accordingly. Many tools and apps can help you track your spending, or you can use a simple spreadsheet or notebook.
10. Automate your finances
Automating your finances can help you save time and improve financial stability. Set up automatic payments for your bills and debt repayments so you don't have to worry about missing a payment. You can also set up automatic savings transfers to consistently save towards your goals
Look After Your Mental and Physical Health
Remember to take care of yourself by practising stress-relieving activities. Monitoring your finances will help you to stay focused and get out of any cycles and month-to-month survival mode.
11. Take time for self-care
It's essential to take time for yourself when dealing with financial problems. Enjoying healthy food with a trusted friend or your wider support system can do wonders for your stress levels, self-esteem, and emotional tension. Taking care of yourself can help you reduce stress and improve your overall well-being, which can help you feel more in control of your finances. Stress-reducing activities can include exercise, meditation, spending time with loved ones, or engaging in a hobby you enjoy.
12. Speak up about your mental health problems
Finally, discussing your financial situation with someone you trust is paramount. Talking to friends and family members or a therapist can help you gain perspective on your situation and find ways to manage your financial anxiety. You can also reach out to mental health charities or support groups, offering you a safe and supportive space to share your experiences and connect with others who may be going through similar challenges.
Remember, taking care of your health is crucial to managing your money problems and building a more positive relationship with your finances. There is no shame in seeking help, and it's vital to prioritise your mental health as much as your financial health.
Are you struggling with financial worries?
By following these simple tips, you can reduce your smaller money worries and take control of your mental and financial health. The key is to take small steps and be consistent. With time and effort, you can build a strong financial foundation to help you feel more in control of your finances and reduce stress.
If you need to speak to someone about your more significant financial worries, consider reaching out to the following third parties for free independent help: