How to cope with financial anxiety

If you’re drowning in debt and struggling to make ends meet, then you're also likely suffering from financial anxiety. This can make your financial woes feel even worse.

We have a look at what exactly this entails, and we consider how you can get yourself into a better state of mind.

Tip: Debt is one of the leading causes of financial stress. Click here to get debt help today.

What is financial anxiety?

Kirsten Smit, advisory partner at Citadel Investment Services, believes that physical health, mental health, and financial health are inextricably linked. 

“Financial stress usually stems from worry, fear, and anxiety about finances. A number of studies have demonstrated a cyclical link between financial worries and health problems, such as depression, anxiety, and substance abuse,” says Smit.

It can be incredibly debilitating to suffer from financial anxiety, and it can disrupt your life in various ways, making it difficult to deal with other activities.

READ MORE: Childhood trauma can ruin your personal finances

What can you do about financial stress?

Firstly, Smit believes that you need to treat the symptoms. These include behavioural changes, such as withdrawing from social activities, and physical symptoms, such as stomach aches or headaches. 

“In this case, it’s important to speak to a healthcare practitioner who will be able to guide you and help manage and resolve your symptoms,” says Smit.

Secondly, and perhaps most importantly, she says that you need to address the root cause of the stress. She believes that once you feel in control of your finances, your stress will be dramatically reduced.

Giles Maynard, wealth manager at Carrick Wealth, says that the most productive step you can take is to enlist the help of a professional.  

“When you’re feeling completely paralysed by your financial situation, it’s difficult to come up with a solution on your own. An expert can look at things objectively. They can provide solutions-based strategies to move forward and become financially resilient,” says Maynard.

“Asking for help when it comes to your finances can make you feel quite vulnerable. However, a true professional will genuinely care about you and will want to help you without judging your situation or choices,” he explains.

Maynard says that you should get clarity regarding your short- and long-term financial goals, and he recommends you sit down and crunch those numbers.

“Gather the facts. If you have a clear roadmap and know exactly where you’re going, you can better prepare yourself by determining how you're going to reach your destination. Having a plan – and sticking to it – offers clarity and mitigates uncertainty,” says Maynard.

He adds that your plan should include everything from your monthly budget, to devising a plan for paying off debt, or strategising a long-term investment plan for your retirement.

In addition to this, he offers the following tips:

• Understand what your income and monthly expenses are.
• Make sure you have clear financial goals and plans.
• If you aren’t good with money, don’t be a hero. Ask for help from a professional.
• Live within your means – can you really afford a cappuccino every day?
• Stay away from credit if you can’t afford to pay it back.

If debt is holding you down and preventing you from living your life, reach out to a debt counsellor.