Learn How To Manage Anxiety Due To Financial Stress

Financial instability is a significant concern for many young adults in India. Financial anxiety goes beyond the everyday worries of managing expenses or dealing with unexpected events and market fluctuations. It’s a deeper emotional state characterised by a profound and ongoing feeling of anxiety about your financial future. This deep concern and fear about the future can have serious consequences on both mental and physical health.

According to research conducted by GOQii (an Indian health and wellness organisation), in 2023, 24% of Indians were stressed due to financial instability. This blog will cover financial awareness and offer several strategies, like understanding spending habits, value-based budgeting, emergency fund creation, investment education, and gratitude practice, that can help improve your financial life.

Understanding Financial Anxiety and Stress

While often used interchangeably, the terms financial stress and financial anxiety represent different experiences with unique consequences. 

Financial Stress 

This is a temporary feeling of worry or strain caused by a specific financial event, like a car repair bill or an unexpected expense. It usually resolves once the situation is addressed.

Financial Anxiety 

This is a chronic and ongoing state of worry and fear about your finances. It’s not just about specific events but a general feeling of insecurity and lack of control over your financial future.

Financial Anxiety Symptoms

Physical signs of financial anxiety include insomnia, muscle tension, migraines, and changes in appetite (overeating or undereating). On the other hand, mental signs are difficulty focusing, being irritable in most situations, losing hope for the future, staying away from people due to fear of confrontation, and finding it hard to make decisions.

The constant worry and uncertainty surrounding finances can lead to anxiety disorders such as depression; these conditions may even culminate into hypertension and heart diseases.

The Vicious Cycle of Poor Financial Health

In general, poor financial health sustains a cycle of concern.  For example, stress inhibits judgment, making it difficult to make sensible financial decisions. Someone distressed by his/her own life could consider spending whatever they had impulsively without checking their bank statements. In this way, however, they worsen their situation while feeding into their anxieties further.

Benefits of Financial Mindfulness

Financial mindfulness has numerous benefits, especially in addressing financial stress and financial anxiety.

Improved Sense Of Control Over Finances 

Keeping track of your finances and understanding how you spend your money empowers you to take control of it, allowing you to make conscious decisions rather than being influenced by fears, causing you to make rash judgments.

Better Decision-Making Process

Thinking logically about your money situation helps. You can assess your needs versus wants, making an appropriate investment or spending choices.

Less Negative Emotions

When you understand where you stand financially, media fears fade (The media often bombards stories about economic downturns, market crashes, and investment risks. These headlines can be scary, especially if you haven’t planned your finances), giving way to calmness and positive thinking regarding your money matters in the future.

Practical Approaches for Financial Mindfulness

Financial mindfulness is being fully aware of your money-related actions and emotions without judging them. It’s about understanding how you relate to money, including your spending habits, fears, and ideologies. This awareness empowers you to make sound financial decisions and build a prosperous future.

To promote financial mindfulness and break the cycle of anxiety, consider these practical steps:

1. Track Your Spending

The first thing is being aware of how much you spend. Start by recording all your expenses, such as income statements, for one month. Many easy ways, like budget apps or spreadsheets, are available today.

2. Challenge Negative Money Beliefs

We all have a money story and belief shaped by our past experiences. Nevertheless, wrong beliefs such as “I will never be good with money” can become self-fulfilling predictions and anxiety-inducing. Identify these thoughts and replace them with powerful ones like “I am capable of managing my finances.”

3. Develop a Realistic Financial Plan

Feeling lost is a big part of financial stress because it’s confusing. Setting attainable financial goals and developing a plan to achieve them can relieve this tension. Start by defining your short-term and long-term objectives (for example, saving for a holiday, creating an emergency fund, or planning for retirement). 

4. Practice Gratitude

Studies indicate that practising gratitude can go a long way in lowering stress and anxiety levels considerably. Dedicate a few minutes daily to thinking about even the tiniest things that make you happy. This shifts your focus from what you lack to what is already there, thus lowering concerns related to finance.

Conclusion

Anxiety due to financial stress is severe, but don’t allow it to dictate terms for your life. By implementing practices like those mentioned above, you can better regain confidence in your finances. Remember that financial well-being is not a destination but a journey; be patient with yourself along the way and celebrate your milestones

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