Dealing with Financial Anxiety: Ways to Cope

If you’re worried about money issues, know that you are not alone. Throughout the past year, many of us have faced financial stressors due to the pandemic. Whether it’s managing your portfolio in a volatile market, or stressing about paying for your child’s college tuition (or paying off your own student loans), financial anxiety can arise from different life situations. Financial anxiety isn’t just worrying about the number in your bank account, rather it can take the form of typical anxiety-related symptoms such as stress, disruptive thoughts, feelings of being overwhelmed and worried, and uncharacteristic behavior. It is not uncommon for someone’s anxiety to get attached to their finances and thus causing them to stress easily about money. For those experiencing financial anxiety during these times, here are some ways to develop healthier habits, reestablish your relationship with your money, and strategize ways to cope with financial anxiety. 

Prioritize your own personal well-being

The purpose of creating healthier financial habits is to improve your overall well-being, not increase your stress levels. If you experience feelings of anxiety in a financial situation (eg: nervousness, tension, increased heart rate) make sure you recognize it. Acknowledging your anxiety in that situation can create separation from your overwhelming thoughts and allow you to dig deeper to find out what’s really going on in your head. It’s important to have a go-to list of coping strategies that can help you feel more centered. For example, calling a friend, going for a walk, or doing deep breathing exercises in moments where you feel anxious can significantly improve your mood and relieve your stress. Continue to look for other ways to improve your mental health while continuing to invest in your financial health as well.

Reestablish your relationship to money

One of the best things that we can do is to establish a healthy relationship with money, to not be scared of the market, and to understand that you shouldn’t treat your finances as just a problem to be solved. When it comes to our financial situations, we typically try to impose control or set strict rules in the face of our anxiety, rather than looking objectively at our own spending and saving behaviors. Small adjustments in how you allocate your portfolio can give you a better sense of control over your finances, and thus improve your mental health and bring you peace of mind when it comes to your money. 

Set aside time to assess your finances and long-term goals

It’s beneficial to dedicate time to assess your finances, so you can approach it in a calmer and more intentional environment. For example, instead of waiting for high-anxiety situations where you need to make a big decision or when something threatens your financial stability (i.e – making a large investment into a new asset class – stock, fund, REIT, etc., or when politics affect the market, thereby affecting your positions in the market), set aside time on any given weeknight to sit down and really take a look at your money.When you set a scheduled “money time”, it can help make you feel more secure with your finances and that you’ve taken the smartest steps to reduce your financial anxiety. In fact, it is common to see increased financial literacy correlated with decreased financial anxiety. So, the more you become familiarized with your investment strategy, you’ll be far less anxious when it’s time to make those big decisions.

At Spinnaker, we understand that your finances have an incredible impact in your life. It is important to take care of yourself and your mental well-being as it can help you commit to your financial goals in the long run. If your financial anxiety is interfering with your ability to enjoy life, contact our financial experts at Spinnaker Investment Group to help you seek professional financial assistance and achieve the financial freedom you deserve today. 


The information contained herein is based on internal research derived from various sources and does not purport to be statements of all material facts relating to the securities mentioned. The information contained herein, while not guaranteed as to the accuracy or completeness, has been obtained from sources we believe to be reliable. Opinions expressed herein are subject to change without notice.

Follow and share our posts:

Subscribe to Newsletter

  • This field is for validation purposes and should be left unchanged.