If the idea of opening a credit card bill or checking your online statement makes you break into a sweat, you are not alone. ANZ and Pacific Magazines recently released Australia’s Money Confidence 2013, a survey that asked almost 12,000 Australians how they think and feel about money matters, and it seems that financial anxiety is rife amongst Australians. Over a third of respondents said that worrying about finances caused them sleepless nights. Whether you’re tossing and turning, nail biting or refusing to look in your wallet, it’s time to take control and shed away some of that stress.
By Michelle Balogh, Money Maven
Whilst we often feel ashamed about our finances, Australia’s Money Confidence found that money stress isn’t just limited to those of us that are having financial troubles. 39% of Australians agree that ‘even when things are going well for me financially, thinking about money stresses me out.’ So if we’re feeling bad even in the good times, what can be done about it?
First of all, we’ve got to get ready to act. Eighty three percent of people who experience financial stress say they procrastinate or try not to think about it. The trouble with this approach is that the longer we run away from our finances the harder and faster they come chasing after us. With that in mind, we’ve put together some useful tips for dealing with money worry. Starting today.
How to deal with money stress:
Change your thinking: Australia’s Money Confidence 2013 found that women are less confident about money and that men have almost twice the amount of savings as women. Coincidence? We think not. The way you feel, think and talk about money directly impacts how much you have. Those who say ‘I’m a terrible spender’ or ‘I have no control over my finances’ are far less likely to save money than those who believe that they can make a positive change. Recognise your power. Make statements like ‘I will cut spending’ and ‘I am going to save’ to increase the likelihood of achieving your financial goals. Believe in the budgeting babe that you are.
Stay in the present: When you’re drowning in debt or slipping into a spending free-fall, it’s easy to get caught up in anxiety about the future. They key to making the future more fabulous? Live in the present. When you look at your financial situation as it stands (rather than worrying about what it might become) it is easier to create a practical plan to deal with your financial future.
Budget to save: Budgets alleviate stress because they allow you to spend without constantly worrying about what the consequences might be. When you’re on a budget you know how much is safe to spend and the whole process of making purchases and going about your daily life becomes a simpler, more secure task. Check out our tips for creating a great budget.
That said, budgeting to avoid debt is not enough. The best way to beat those sleepless nights is to budget to save. Savings are a safety net; the more savings we have the less financially stressed we feel. Even if you’re only able to save $5 a week we recommend pulling out that piggy bank and putting some dollars aside for a rainy day. You won’t believe how much better you’ll feel.
Reward Yourself: Cracking down on money problems can often mean cutting down on those little luxuries that you love the most, so be sure to reward yourself along the way. The trick is to do so in a financially viable way. Alvin Hall, author of You and Your Money: Mastering the Emotions Behind the Numbers, says “Ask yourself: ‘What is the one thing I can do that will give me the longest-lasting uplift for the least amount of money?'” During the economic downturn of 1987, Hall’s treat was blackberry pie. “I’d think about it all day, and if I came in under my budget, I’d go order a slice. When I couldn’t afford that, I’d visit the museum and look at Van Gogh paintings.”
Get help: You aren’t in this alone! With so many Australians suffering from money worry there’s a whole league of professionals out there waiting to help. Seek out the assistance of a financial advisor, a money-savvy friend or business coach. If you’re to shy to talk, have a look at these helpful articles from financial expert Anthony Bell.
For more about Australia’s Money Confidence 2013 visit: anz.com/moneyconfidence