She Strengthens

Breaking Free from Financial Stress: A Path to Emotional Freedom

Are you tired of living in fear of financial uncertainty? You’re not alone. Even the most financially responsible individuals can fall prey to unexpected expenses or events that can send them spiraling into financial duress. In today’s global pandemic, the weight of financial stress is taking a devastating toll on our mental health.

Acknowledge the Stress and Shame

For many, shame and avoidance can exacerbate financial problems. Psychotherapist Haley Neidich explains, “Money and shame are deeply connected. Avoidance often leads to anxiety, which can cause us to neglect our finances altogether or obsess over every penny.” It’s essential to confront these feelings head-on and prepare your mind before tackling your finances.

Practice Self-Compassion

Being hard on yourself won’t solve financial stress. Instead, practice self-compassion. Dr. Zlatin Ivanov, a board-certified psychiatrist, suggests taking small steps to manage your finances, and don’t panic if you encounter setbacks. Take time to breathe, meditate, or engage in activities that bring you joy.

Turn Budgeting into a Ritual

When beginning to tackle finances, start with a declaration: “I acknowledge my financial situation, and I choose to take control.” Write down your emotions and reflect on them weekly. This helps remove emotion from the process and allows you to approach your finances practically.

Start with Small Steps

If you don’t have a budget, you’re not alone. Most young adults lack a budget, but you can start creating one in just a few minutes. Use a pen and paper, personal finance software, or an app like Mint to track your income, expenses, and debts. Take small steps, and don’t be too hard on yourself.

Declutter Your Budget

Just as you would declutter your living space, apply the same principles to your finances. Identify essential purchases and cut back on non-essentials. Ask yourself: Which purchases bring me joy and value? Which can I eliminate?

Manage Debt with Confidence

Paying off debt can reduce stress and simplify your finances. Dr. Ivanov recommends the “debt avalanche” or “debt snowball” method. Focus on paying off high-interest debts first or tackle smaller debts to build momentum.

Regularly Track Your Expenses

Checking your finances regularly can increase awareness and help you make data-driven changes. Practice gratitude for expenses incurred, focusing on what they’ve brought you rather than seeing them as a deficit.

Seek Out Resources and Support

Check with lenders for 0% loans or late fee waivers, and explore support from state and local agencies. Consolidate debt, insurance policies, and retirement accounts to simplify your finances. If needed, seek professional help from a financial planner or mental health professional.

Take Control of Your Financial Future

Breaking free from financial stress requires a holistic approach. By acknowledging shame, practicing self-compassion, and taking small steps towards financial management, you can regain control of your life. Remember, seeking help is a sign of strength, not weakness.