Stressed About Finances? Here’s How to Focus on What Matters Most

Money Mindset

Jul 17

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Are Your Finances Causing Anxiety? Learn How Prioritizing Can Bring Relief

Introduction

Have you ever felt like your money is flowing out of your life faster than you can catch it? Or perhaps just thinking about your bank account keeps you up at night. Trust me, you're not alone. Managing money can often feel like herding cats—tricky, to say the least! But why is it so stressful, and how can we turn this financial circus into something more manageable? Luckily, with a little focus on what truly matters to you, financial stress can become a thing of the past.

Why Is Money Management So Stressful?

Uncertainty and Fear

At its core, money management stress usually stems from uncertainty and fear. Think about it: when you’re unsure of your financial situation or afraid that you won’t be able to make ends meet, it's easy for anxiety to creep in. Sticking your head in the sand is much easier than facing the facts about your spending or debt situation.

Pressure from Society

Keeping up with the Joneses—or in today's terms, keeping up with social media influencers—is exhausting. Society bombards us with messages about what we should own or experience. When everyone around you seems to be doing better financially, it’s easy to feel inadequate or anxious about your own finances. But try not to compare yourself to others. You have no idea what their financial situation looks like. They might be in just as much debt and struggling to keep their head above water, despite any outward appearances.

Emotional Attachments

Money is an incredibly emotionally charged topic. It Isn't just spreadsheets or numbers on a screen; it’s tied to our dreams, aspirations, and even our self-worth. When things aren’t going well financially, it can feel like a personal failure. Money is deeply tied to our emotions and self-worth. Each financial decision feels like it carries the weight of the world, amplifying our stress levels.

Identify What’s Most Important to You

Discovering Your Core Values

Start by identifying your core values. What are the things that matter most in your life? Is it family, travel, education, or perhaps giving back to your community? Once you know what truly matters to you, it becomes easier to align your financial goals with these values.

Aligning Your Spending with Your Priorities

Once you've identified your values, it's time to align your spending accordingly. If family is a top priority, maybe splurging on a big family vacation makes sense for you. By aligning your spending with your priorities, you're not just managing money; you're enriching your life.

Creating a Vision for Your Financial Future

Creating a vision board isn't just for aspiring entrepreneurs or Pinterest enthusiasts. Visualizing where you want to be financially can provide direction and motivation. Whether it's buying a house or retiring early, having a clear vision helps keep stress at bay.

Embrace Budgeting

Now comes the fun part—creating a budget! Yes, I said fun. A budget isn’t just about restricting yourself; it's about making sure your money goes toward things that bring joy and fulfillment into your life. This is where defining your goals and priorities FIRST is key to success.

Use Tools Like YNAB

Tools like YNAB (You Need A Budget) can be incredibly helpful here. Trust me when I say it's a game-changer! Every client who has committed to the process has learned to love YNAB, just like me! This tool simplifies budgeting by giving every dollar a job and helping you prioritize what’s most important. (Here’s more about why I love YNAB so much!)

Make Room for Fun

Don’t forget to budget for fun! Life isn’t just about paying bills and saving for retirement; it's also about enjoying the journey along the way. Whether it's dining out once a week or taking dance lessons—make sure there's room in your budget for activities that bring happiness.

Practical Tips for Reducing Financial Stress

Automate Savings and Bills

Automation is your best friend when it comes to reducing financial stress. Set up automatic transfers for savings and bill payments so you don't have to think about them. Less manual work means less room for error—and worry. By setting up automatic transfers, a portion of your income goes directly into savings accounts or investments before you even see it.

Build an Emergency Fund

Having an emergency fund is like having a safety net beneath your financial tightrope walk—it provides peace of mind knowing there’s something to fall back on if unexpected expenses arise. It might seem impossible to save when you are just starting out but start with something small like $5 or $10 a week with the goal of increasing it every couple months. Don’t forget to automate this savings! You probably won’t notice that the money is even gone.

Tackle Debt Strategically

Debt can be one of the biggest sources of financial stress. Develop a strategy for paying down debt systematically—whether it's using the snowball method (paying off smallest debts first) or avalanche method (tackling highest interest rates first), find what works best for you. Choose one that resonates with you and stick to it. Personalization ensures that the plan fits seamlessly into your lifestyle.

Building a Positive Relationship with Money

Cultivating a Positive Money Mindset

Changing how we think about money is another critical piece of the puzzle. Are you constantly telling yourself that you can’t afford things and will always be in debt? If so, you might be unintentionally sabotaging yourself. Here are a few tips to start shifting your mindset.

Practice Gratitude

Practicing gratitude helps shift focus from what we lack financially toward appreciating what we already have—a roof over our heads, food on our tables, supportive friends/family etc., which fosters contentment rather than anxiety over finances. Nothing is too small. You can be grateful for a great cup of coffee in the morning or a book a co-worker shared with you.

Seek Support & Education

Don't go it alone! Don’t hesitate seeking support if needed—whether through professional financial coaches or educational resources/books/blogs/podcasts etc., learning more about personal finance empowers us to make informed decisions reducing uncertainties/anxieties surrounding money management significantly! (Check out my list of book recommendations here.)

Treating Money as a Tool, Not an Enemy

Money isn't inherently good or bad; it's simply a tool that can help achieve your goals if managed well. Shifting this mindset can drastically reduce anxiety around finances.

Celebrating Small Wins and Progress

Celebrate every small victory along the way. Paid off one credit card? High five! Managed to save $50 this month? That's awesome! Recognizing progress keeps you motivated and reduces overall stress.

Final Thoughts

By aligning your goals with your spending, you too can transform your current financial situation into an enjoyable journey. Working towards achieving Your Greatest Life is possible! It just takes one step in the right direction to get you on the right path.

Ready to take control of your finances and reduce stress? Start by identifying your core values and aligning your budget with what truly matters to you. Download my free workbook today to start getting your priorities in order! 👇🏻