Does money keep you up at night?

Also published on: https://www.bee.com.au/2020/10/29/does-money-keep-you-up-at-night/

Most of us have a pretty complicated relationship with cash. We’ve all asked ourselves if we’re making enough, saving enough and doing enough. Most of us feel guilt when we overspend, or spend money on the wrong things.

But what happens when it’s more than that?

“Money anxiety disorder”, or “financial anxiety”, can involve constant worry and unease about money. It’s going beyond a manageable level of stress and regular money worries, to fully-fledged financial anxiety.

Definition: “a psychosocial syndrome whereby individuals have an uneasy and unhealthy attitude toward engaging with and administering their personal finances in an effective way.”

What’s the difference between financial worry and anxiety?

“When we speak of financial anxiety,” says Dan Auerbach, psychotherapist at Associated Counsellors & Psychologists Sydney, “we are talking about anxiety symptoms becoming connected with worry about money and finances.”

“Financial anxiety might include experiences like thinking about money a lot more than is productive, having a nervous feeling when thinking about money, trying to avoid thinking about money and insomnia triggered by financial worries.

What differentiates financial anxiety from worry is that anxiety continues at times beyond the period where there is a real financial threat, or else, that the symptoms start to interfere with our wellbeing for more than a few weeks.”

How can it manifest?

Auerbach says the triggers for financial anxiety can either be situational —when a real world event sparks anxiety— or finance worries linked to a predisposition towards anxiety. “The key is the level of distress that it causes you”, he says.

Financial anxiety can take on a lot of different forms.

Those experiencing financial denial might try to minimise their issues with money by avoiding them all together.

It might look like refusing to open bills, bank statements, or overdue notices. It might also look like constantly getting new credit cards or consistently borrowing money from friends and family.

Stockpiling money and hoarding objects might also be a sign of financial anxiety. It can provide a welcome sense of safety and security, despite a person’s circumstances.

Fears down under

According to the NAB Consumer Anxiety Survey 2020 (Q1), “consumer anxiety and spending behaviours are changing quickly in response to coronavirus fears and self-isolation”.

“It is difficult to see how consumer anxiety will not continue to climb from here and spending will fail to rebound strongly once concerns around the virus dissipate.

Around 1 in 4 consumers reported spending less than they earned (in Q1 2020) – tie this to the already very high amount of disposable income being saved, and you begin to see the underlying force driving financial insecurity.”

“SEMrush’s data shows a significant increase in Australians looking for ways to save this year,” says Olga Andrienko, Head of Global Marketing at SEMrush.

“From better budgeting to refinancing options and consolidating debts – 2020 has been an eye opener for many households when it comes to personal finances.”

“Searches for financial stress was up 19 per cent in the first half of this year, with an 84 per cent jump in March as the pandemic started to impact businesses and the wider Australian job market.

Of the top 100 searches, 56 per cent were for mortgage and debt-related queries and budget-related questions accounting for 27 per cent. These included Australians exploring loan refinancing options and ways to get out of debt.”

Where to go from here?

Overcoming financial anxiety takes time and patience.

“If you are worrying about money many times a day, more than is productive or if it is affecting your ability to sleep or enjoy life it is time to try some treatment,” says Auerbach.

“The most common treatment approach is initially something like Cognitive Behavioural Therapy, where you are taught a range of relaxation and stress management techniques as well as some ways to better reason with yourself when you find yourself having circular worry thoughts.

Of course, you can also start with making sure you are getting enough exercise, have good social relationships and try some relaxation methods at home.”

Practising healthier financial behaviours might just be the key to helping us become emotionally wealthier as well as materially – but it starts with a conversation. So here’s to becoming more financially empowered, and hopefully, a lot less anxious.

If you’re struggling financially, you can click here for access to ASIC’s up-to-date list of resources. We’ve also listed a few resources below.

National Debt Helpline

Phone: 1800 007 007: The National Debt Helpline is available from 9.30am to 4.30pm, Monday through Friday. Calls from mobile phones may incur a fee from the mobile phone carrier. You can also visit the National Debt Helpline website for information and resources. Lifeline Crisis Support Phone: 13 11 14: If you need urgent crisis support, call Lifeline’s 24/7 hotline.