Money related worries are the most common cause of anxiety in the UK, and a study conducted by Shepherds Friendly in 2023 revealed that over a third of Brits struggle to understand their finances, leaving them feeling stressed.
Ahead of International Stress Awareness Week (30th of October to the 3rd of November 2023), Shepherds Friendly has partnered with Georgina Sturmer, Counsellor, MBACP, and psychotherapist Tasha Bailey, to get their insights into the psychology behind unhealthy money habits. They’ve also provided some tips on how best to deal with money related stress, and who to turn to if the worries are piling up.
According to psychologists, we’re more likely to overspend if we’re already anxious about money
Financial worries can be caused by short-term pressures, such as increased rent or loss of employment, or longer-term stressors such as environmental and social factors, as well as our own personal history and relationship with money.
On how spending habits can change when we’re stressed, Georgina says, “When our worries pile up, it can lead to a sense of helplessness and sometimes self-sabotage. This explains why we might find ourselves continuing to compulsively spend, even if we’re worried about money.”
Tasha agrees, suggesting, “Spending money might give us a false sense of autonomy in a situation where we actually feel money is out of our control. It can also be a sense of revenge, or our way of reacting to any feelings of resentment we have. It’s almost like our inner child is acting out and reclaiming what is theirs. We might also over-spend because we’re avoiding the reality of what we do or don’t have.”
If you find yourself tempted to spend money that you don’t have, Georgina advises, “Take a moment to assess the situation. What’s driving the purchase? Is it something that you really need, or are you just looking for that dopamine hit that sometimes accompanies a purchase. Set yourself a time limit, wait 24 hours and then review whether you really need to make that purchase.”
Tasha also adds, “It’s okay for your inner child to want to spend money. But your inner parent needs to set boundaries around how much money that can be. Maybe give yourself a set amount of money to play with each month, and increase it when things get better.”
Experts reveal five tips for dealing with money-related stress
Anxiety over money can be overwhelming and cause us to struggle when it comes to focusing on other priorities in our lives, such as our relationships, careers and self-care.
Below, Georgina gives her top five tips to help combat money-related anxieties:
Face up to what’s going on
It might be tempting to ignore problems or hide away from them but this is unlikely to solve things. Shying away from your issues is likely to worsen the physical and emotional burden that you’re carrying. Take stock of the stress that you’re under, and consider if there are any practical steps you can take to reduce the pressure.
Try to untangle the stress
Often it’s about more than ‘just’ the money worries. Take time to figure out the feelings that are underlying the stress.
It might help to unpack your anxieties about money. A lot of the time, the way that our parents and family deal with their finances can instil fear or pressure in our own relationship with money. Have a think about your family’s history with money, and how it impacts you now. With a greater understanding of the issue, you can better combat it.
Become more financially intelligent
Many of us weren’t taught about how to have a good relationship with money, let alone investments, taxes and savings. However, we have so much easy access to insightful books and content online now which can help fill in any gaps in your knowledge. The more understanding you have, the better decisions you’ll make going forward.
Set financial boundaries and learn to recognise self-sabotaging behaviour
Financial boundaries should be flexible enough to allow you to enjoy the money that you work for, while also allowing you to pay your bills and save for your future. Learn to recognise when you’re starting to lean towards unhealthy habits such as compulsive spending as this can lead to a vicious cycle of overspending and money anxiety.
Seek support
There’s no shame in sharing your worries with other people, whether this involves voicing your concerns to a friend or family member, or even seeking professional support from an organisation or charity. Voicing your concerns can help you prioritise any actions you need to take and can even help to normalise your money-related concerns.
Mental health experts advise on who to turn to if money worries pile up
For those who feel overwhelmed by their money troubles, Tasha says, “Many of us might feel a sense of shame or fear of criticism about our financial situation, so will feel like we have no one to speak to.
“Any shame we feel around our financial situation often gets smaller when we’re honest with ourselves and others. So, if you do feel that someone has the capacity to be non-judgemental about your situation, you should share your money story. Alternatively, there are so many great courses, social media accounts and books out there which may lead you to a safe community to learn from.”
Georgina expands on this by advising, “Remember that there are plenty of organisations who are there to listen and support you. Samaritans and SHOUT are both staffed 24/7 by trained volunteers who are there to offer a listening ear. Your local Citizens Advice Bureau and the Money Advice Trust can also offer invaluable support.”
The post Money Talks: Expert tips for overcoming unhealthy money habits appeared first on HR News.