Stop Worrying About Your Money: In today’s uncertain financial climate, it’s natural to worry about the safety of your money. But when these concerns become persistent, they can lead to anxiety, affecting not only your financial health but your mental well-being too. According to a recent GSNSP survey, 29% of respondents worry about their money’s safety at least once or twice a month. Another 17% admit to worrying once or twice a week, while 15% report being anxious more than twice weekly. If you find yourself constantly stressing about your financial security, it’s time to reassess your relationship with money and learn how to regain peace of mind.
Key Points
Signs You’re Worrying Too Much About Your Money
Here are some clear signs you might be obsessing over the safety of your money and actionable solutions to ease your anxiety.
Sign #1: You’re Overemphasizing Cash Holdings
Tyler Meyer, CFP and founder of Retire to Abundance, says one red flag of financial anxiety is an overreliance on cash savings. If you’re avoiding investments altogether and keeping most of your savings in cash or low-yield accounts, you may be too focused on avoiding loss, which can stifle your long-term growth.
Solution: Diversify Your Portfolio
“Spreading investments across various asset classes can reduce risk and provide peace of mind,” says Meyer. A diversified portfolio ensures you aren’t putting all your eggs in one basket, and it’s less likely that a single market event will wipe out your savings.
Sign #2: You Avoid All Financial Risk
Avoiding anything beyond ultra-safe assets, like government bonds or insured deposits, might indicate excessive caution, says Meyer. While it’s smart to safeguard your money, avoiding all risk can hinder potential growth.
Solution: Focus on Long-Term Goals
Investing should be viewed as a long-term strategy, Meyer explains. Short-term fluctuations are inevitable, but by keeping your eyes on the bigger picture, you can minimize anxiety and allow your investments to grow over time.
Sign #3: You’re Constantly Monitoring Your Accounts
If you’re checking your account balances or tracking market movements multiple times a day, it’s a sign you’re overly concerned about the safety of your money.
Solution: Educate Yourself
Understanding how investments work and why certain risks are necessary for growth can help ease your fears. “Knowledge is empowering,” says Meyer. “Once you grasp the basics, you’ll feel more in control and confident in your decisions.”
Sign #4: Paralysis by Analysis
Are you taking too long to make financial decisions? Fear of losing money might be paralyzing you from making any moves at all, which can hurt your financial progress.
Solution: Automate Investments and Consult with an Expert
Setting up automatic contributions to savings or retirement accounts can ensure you’re consistently investing without the need for constant decision-making. Meyer also recommends consulting with a financial advisor who can help you develop a personalized plan aligned with your risk tolerance. “A tailored plan can reassure you that your money is being managed safely,” he notes.
Additional Tips to Reduce Financial Anxiety
Crissi Cole, founder and CEO of Penny Finance, emphasizes that money worries are often rooted in anxiety. “It’s about managing your nervous system and attachments to money,” says Cole. Here are five practical steps you can take to alleviate money-related stress.
1. Know Your Numbers
Cole recommends creating a mini budget to track income, expenses, and any leftover funds. This will give you a clearer picture of your financial situation and help you make more informed decisions.
2. Create an Action Plan
Cole suggests thinking big but breaking it down into small, manageable steps. For example, if your goal is to save $1,000 over a year, break that down into small, achievable monthly or weekly goals.
3. Eliminate Debt
Debt is something many people hide from, but addressing it head-on is the first step toward relief. Write down all your debts to get a complete picture. “There’s power in knowing,” says Cole.
4. Build Emergency Savings
Think of your emergency savings not just as a safety net but as an opportunity fund. Having this cushion will make you feel more secure, knowing you can handle unexpected expenses without falling into debt.
5. Build Your Nest Egg
Saving for the future may seem daunting, but Cole encourages starting small and starting now. “It might take years to hit that million-dollar goal, but it’s doable,” she says. The key is consistency—your future self will thank you.
Conclusion
Worrying about your financial security is normal, but when it starts to dominate your thoughts, it’s time to make changes. By recognizing the signs of excessive money worry and taking proactive steps—like diversifying your portfolio, focusing on long-term goals, and seeking professional guidance—you can regain control of your finances and your peace of mind.
