Money is one of the most common sources of worry for people worldwide. And while it’s normal to feel some level of anxiety about your financial situation, chronic money worries can seriously impact your health and wellbeing.
The best way to start living without worrying about money is to take a step back and figure out what good looks like for you. Create a budget and stick to it. Use spare money to pay off debt and build an emergency fund. Lastly, ensure that you’re investing in things that grow over time, like index funds, property, businesses and yourself.
If you’re struggling to break free from a cycle of worry and stress about money, there are some steps you can take to gain control of your finances and start living a more peaceful life.
In how to stop worrying about money and start living, we’ll explore some practical tips for how to stop worrying about money.
Figure out where your money worries are coming from
When it comes to money, we can usually trace our worries to one of two things: our past or future.
Some people worry about money because they have a history of financial instability or because bad investments have burned them in the past.
Others may worry about money because they’re concerned about their future financial security.
If you’re struggling to stop worrying about money, it’s important to take the time to understand why you’re feeling this way.
What is causing your anxiety, stress or high blood pressure when it comes to finances?
Once you better understand the root of your worries, you can begin to address them and find solutions.
If you find that your money worries are stemming from your past, try focusing on ways to improve your financial situation in the present.
Work on building up your savings, creating a budget, and organising your finances.
If your concerns about money are related to your future, start planning for retirement or emergencies now.
Create a budget and save as much as you can each month so you’ll be prepared for any unexpected expenses down the road.
If you would like help with planning for a bright financial future, take a look at our essential life planning process.
Get your poop in a group
One of the key steps to take when you’re trying to stop worrying about money is to get your financial paperwork in order.
Gather up all of your bills, statements, and records and put them in one place.
Figure out your
- Net worth – everything you own minus what you owe (this is your baseline)
- Credit card debt and any student loan amounts
- All your bank account details
- Monthly expenses
This will help you keep track of your finances and make it easier to budget and manage your money.
knowing how and what you spend money on will help start to shine a light on where it all goes.
Understanding your financial habits will be the start of changing
- How you spend money
- Who and where you borrow money from
- How you make money decisions, including any bad habits
Knowing your spending habits might be the key to slowing down any poor financial decisions you are prone to making.
Start saving money
Build up your savings: One of the best ways to reduce stress about money is to have a cushion of savings to fall back on in case of an emergency.
If you don’t have much saved, start small by setting aside a few dollars each week or month.
Over time, you can gradually increase your savings until you have a substantial emergency fund.
When you save money, you are building a gap between you and a crisis.
Savings reduce financial stress because you know you have something to deal with any money stress that comes along.
Even just a month’s worth of money in your savings account will feel like breathing space and a lot more money than next to nothing.
Talk about your money
Communicate with your partner: If you’re in a relationship, it’s important to communicate openly with your partner about money.
Discuss your financial goals and concerns, and work together to create a budget and plan for your future. Having open and honest conversations about money can help reduce stress and build trust in your relationship.
SHaring your financial anxiety with others can help with finding solutions, never mind ease your mental health and will be an important part of your self-care.
Seek professional help: If you’re struggling to get a handle on your finances, don’t be afraid to seek professional help.
A financial coach or counselor can offer guidance and support as you work to improve your financial situation.
Review and revise your money mindset
Small changes in your behaviour and attitude towards money can significantly impact your overall wellbeing.
If you’re ready to start living a more stress-free life, try implementing some tips to stop worrying about money.
5 ways to change your money mindset
- Understand that money is just a tool, and it’s not worth getting stressed about.
- Make a budget and stick to it.
- Live below your means. Try, and I’ve off 80% of your income.
- Invest in yourself by taking courses and learning about personal finances.
- Stop comparing your financial situation to others. Everyone’s journey is different.
Set life and financial goals and take action on them
Some of your financial goals might include
- Saving up for a rainy day fund
- Saving up for a down payment on a house
- Contributing to your retirement fund
- Investing in stocks or mutual funds
- Enough money in your bank accounts so you can spend less time worrying.
- Travelling around the world
- Learning a language
- Starting a business
To achieve these goals, you will need to be clear on what good looks likes
You will also need to be disciplined with my spending and avoid unnecessary expenses.
By taking action on these goals, you can help reduce stress about money, start working towards a more secure financial future, and start living the life you want.
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Create a budget
One of the best ways to take control of your finances and ease your money worries is to create a budget.
Knowing where your money is going each month can make it easier to make informed decisions about your spending and saving.
If you’re unsure where to start, the Kakeibo budgeting method can be a great way to track how you are spending money, spot a bad habit (like takeaway every day) and improve how you handle money on a day-to-day basis.
Put an emergency fund in place
If you don’t have an emergency fund, now is the time to start one.
Try setting aside a few $£ each week or month until you have a cushion of savings to fall back on in case of an emergency.
If you can’t spare much money right now, start small and gradually increase the amount you’re saving over time.
Having at least 3-6 months of living expenses in savings will ease your financial worries as you know your monthly income needs are covered for that period.
Live within your means
One way to reduce the amount of money-related stress in your life is to live below your means. This means spending less than you earn each month and using the extra money to save, pay off debt and invest in your future self.
Living within your means is a culmination of making a budget, sticking to it and knowing your financial goals.
It can be difficult to change your spending habits, but if you’re serious about reducing your financial concerns around money, it’s important to make an effort to live below your means.
Deal with your debt
Overwhelming debt is a leading cause of constant anxiety, losing sleep and financial problems for many families and individuals.
If you’re struggling with debt, there are a few things you can do to get back on track:
Make a plan
Sit down and figure out how much money you owe and to whom. Then, create a plan for how you will pay off your debt.
Always make sure you make the minimum payments to avoid making the situation worse, then consider these approaches.
Snowball your debt
Start by paying off your debts with the highest interest rates first. As you pay off each debt, you’ll have more money available to put towards the next one.
Avalanche your debt
Start with the debt that has the highest outstanding balance. As you pay off each debt, you’ll have more money available to put towards the next one.
Seek professional help
If you’re struggling to make headway on your debt, you may want to seek professional help from credit counselling or debt management service.
These organizations can work with you to create a repayment plan that fits your budget and timeline.
Getting the right financial guidance can be the key to breaking out old habits, dealing with what life throws, and growing your wealth for a brighter future.
Find ways to make extra money
There are a number of ways to make extra money on the side, which can help reduce your financial stress and allow you to save more money each month.
Some popular options include:
– Taking online surveys
– Selling items you no longer need
– Doing odd jobs for people in your community
– Negotiating a higher salary
– Renting out a room in your house on Airbnb
– Starting a blog on something you have skills, experience or knowledge in.
Making extra money each month can help you boost your savings, pay off debt and give you some financial wiggle room.
Start Investing and creating wealth for yourself
Investing is one of the best ways to grow your wealth over time. When you invest, you’re essentially putting your money into something with the expectation that it will increase in value.
There are a number of different ways to invest, including:
– Investing in paper assets like the great companies of the world
– Investing in real estate
– Investing in businesses, including your own.
If you’re unsure where to start, you can find more from our essential life planning process.
Automate as much of it as you can, relax and enjoy life!
One great way to reduce the amount of money-related stress in your life is to automate as much of it as possible. This means setting up regular payments to go to your savings account, investment accounts and other financial goals.
Final thoughts How to stop worrying about money and start living
If you want to take back control of your life, it’s time to start planning.
And that starts with figuring out where your money worries are coming from and getting organized.
From there, you can start saving money, talking about your finances openly and honestly with the people in your life, and setting goals for yourself.
With a solid financial foundation in place, you can relax a bit more and enjoy life – knowing that you’re on track for a bright future.
Ready to get started?
Check out our essential life planning process – complete with tips on how to deal with money stress once and for all!
FAQ how to stop worrying about money and start living
How do I stop worrying about finances?
One great way to stop worrying about finances is to establish a budget and stick to it. When you know exactly how much money you have to work with each month, it’s a lot easier not to worry about going over budget or running out of cash.
Another thing that can help ease financial worries is to start investing in yourself. Invest in your education, invest in your health, and invest in your future. The more you put into yourself, the more confident you’ll feel about your financial situation and the less worried you’ll be about money.
Is it normal to worry about money all the time?
It is normal to worry about money occasionally, but if you are worried about money all the time, then it may be a sign that you have an unhealthy relationship with money.
Some people are so afraid of not having enough money that they become obsessive about it and start to worry about every penny. This can lead to stress and anxiety and seriously interfere with the quality of life.
If you find yourself constantly worrying about money, getting some coaching or planning may help you address the underlying issues may be helpful. Once you address the emotional factors behind your unhealthy relationship with money, you will be in a better position to make healthy changes in your financial situation.
How do I stop worrying about lack of money?
There are a few things that you can do in order to stop worrying about lack of money. First, try to develop a more positive outlook towards money.
This doesn’t mean you have to become greedier or start hoarding money, but simply shift your focus from worrying about not having enough to being grateful for what you have. Second, work on creating more financial security for yourself.
This may involve getting a better-paying job, looking into investments or savings plans, or reducing your expenses. Lastly, remember that worrying about money won’t actually solve any of your financial problems – it will only make you unhappy and stressed out.
So instead of worrying, take actionable steps towards improving your financial situation.
How do I stop worrying about the future and start living?
There’s no doubt that worrying about the future can be incredibly stressful and even paralyzing at times. But the good news is that there are things you can do to stop worrying and start living. Here are a few suggestions:
1. Make a plan. Having a specific plan for what you want to do can help minimize anxiety about the future because you know what steps you need to take to reach your goals. So sit down and map exactly what you want to achieve and how you’ll do it.
2. Take action. Once you have a plan, it’s important to take action and not just sit around worrying all the time. Remember, worry is inaction, so focus on taking small steps each day to move closer to your goals.
3. Live in the present. One of the best ways to stop worrying about the future is to focus on the present moment. When you’re worried about what might happen, it’s easy to forget all the good things happening right now. So take some time each day to appreciate the moment you’re in and focus on all the positive things in your life.
4. Figure out your means or how to create the wealth you need. Will you find the money from your current income, savings and investments or will you need to create it through investments, businesses, property or entrepreneurialism.
5. Execute your plan, review and revise as you go along and your life changes.
Why do I get so anxious about money?
There are a few potential reasons why you might get anxious about money. One possibility is that your family didn’t have much money when you were growing up, so you may associate money with lack or insecurity.
Another possibility is that you’re afraid of being irresponsible with money, ending up in debt, or even going bankrupt.
Whatever the reason, it’s important to address the underlying issue so that you can start to feel more comfortable and relaxed around money.
One way to do this is to talk to a planner or coach who can help you explore your feelings and give you some tools for managing them. You might also want to read some books or articles on financial literacy so that you can become more educated about money management and planning your life and money.
What is financial anxiety called?
Financial anxiety isn’t something that has a precise medical definition – it’s more of a colloquial term. But in general, it refers to feelings of stress or worry related to one’s financial situation. This could encompass everything from concerns about being able to pay bills or make ends meet, to worries about retirement savings or investment decisions.
For some people, financial anxiety is a constant low-level concern, while for others it can be sporadic and triggered by specific events (such as losing a job or experiencing an unexpected expense). And while it’s normal to have some degree of stress around money matters, chronic financial anxiety can interfere with your ability to function on a day-to-day basis and enjoy your life.
Why do I feel financially insecure?
There are a number of reasons why you might feel financially insecure. Perhaps you’re in debt, or maybe you live paycheck to paycheck and are always worried about money. Maybe you grew up in a household where money was always tight, or perhaps you’ve heard stories of people who have lost everything during an economic downturn. Whatever the reason, financial insecurity can be a real source of stress and anxiety.
The good news is that you can take steps to reduce your financial insecurity
-Set some life and financial goals.
-Live within your means
-Build up an emergency fund
-Start tracking your money
-Make a plan to deal with your debt.