Most of us get it. Admittedly because who wants to count all the money he has and remind himself of their problems?
However, unlike problems, money can actually be controlled to precision. How much to spend, save, reduce wasting and the list goes on.
Financial anxiety is reported to be the combination of financial illiteracy and mismanagement leading a substantial number of individuals to face the foreseeable risk of debt and associated psychological difficulties.
To stay afloat amid unprecedented financial waves, here’s a few ways that would ease your anxiety and possibly attain financial freedom.
Create a budget
Once you have a handle on your outgoings, look at your income. Work out how much you have left over after you have met all your obligations. When you know what you can afford to spend each month, you will feel more in control.
Ask for help if you need it
If your debts and other payments are too big to tackle, get help. Banks will usually consider lower monthly repayments if you call and tell them you are struggling. People shouldn’t put off seeking help. Delaying seeking help often makes problems worse – people often borrow to try to make ends meet and can end up in a spiral of ever more expensive borrowing as a result.
Save – Build yourself a buffer
If you can afford to put some money aside each month, create an emergency fund. Advisers typically recommend aiming for three months’ earnings in an easy-access savings account, which you can use for unexpected expenses. If you can’t manage that much, any funds you can build up will be helpful. Some employers offer savings schemes where money is redirected from your salary before you get a chance to spend it.
Understand your relationship with spending
Not everyone with financial anxiety is on the breadline – it may be that even though you are comfortably off you feel panicked about spending and tend to hoard your cash rather than using it. It is worth reflecting on why that might be. Perhaps you grew up in a family with little money and don’t want to return to that situation, or you have had a financial shock at some point, or maybe your job or relationship don’t feel secure. Ask yourself if having more money in the bank would make you feel better, or if the cash could be used to do things to make you feel happier or safer.