Money & Your Mental Health
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Money can be extremely stressful, especially during the ongoing COVID-19 crisis, in which 84% of Americans report feeling stressed about their personal finances according to the National Endowment for Financial Education.
Financial anxiety can stem from concerns with job security to income fluctuations to having enough emergency savings and much more. Although there will always be uncertain factors infiltrating the financial landscape, there are also expert-recommended ways to rein in your stress and effectively manage your money. This way, you can enjoy your hard-earned wealth with an eased mind.
We’ve invited expert panelists Rahkim Sabree @RahkimSabree, Carmen Reinicke @csreinicke, and Natalie Torres @finsavvylatina to share their tips on combating financial anxiety, which will range from recognition to practices to professionals who can help.
Missed the Tweet Chat? Here’s a recap:
Q1. What do you make of anxiety? What can anxiety be trying to tell you? In your experience, what helps soothe anxiety, and what actions help heal it?
Rahkim Sabree: While anxiety is likely the result of some evolutionary stress response, it's usually the anticipation of something that hasn't occurred yet. Identifying what triggers that anxiety, acknowledging it, and taking action toward addressing it usually helps me out
Carmen Reinicke: As frustrating as it is, experiencing ~some~ anxiety is a normal part of life. For me, it's usually telling me to slow down, take a deep breath or even to ask for help (often easier said than done!)
Natalie Torres: What anxiety is trying to tell me is that something in my body or spirit is not at ease. What I make of it as it’s a reminder to take time to rest, take more breaks and talk to someone for help especially around money anxiety.
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Q2. If you recognize you’re prone to feeling uneasy when it comes to money and financial decisions, what can you do to help you prepare to tackle the financial task(s) at hand? What self care practices might be helpful to incorporate into your financial habits?
Rahkim Sabree: Identifying & naming the financial traumas that inform your anxiety & then exercising a plan to address them in small increments are necessary. This can be done alone or w/ an accountability partner. Be kind to yourself, you don't have to be perfect, just consistent.
Carmen Reinicke: Finding a trusted, expert source for financial advice is important! Read personal finance news, follow your favorite experts on social media and consult a professional if you're able. You can also enlist friends with similar financial goals to provide community and support! A5a. Here's an article that showcases how a community can be a huge help in building wealth/ learning personal finance basics. https://cnbc.com/2021/07/06/this-bronx-based-book-club-shows-how-community-can-help-build-wealth.html…
Natalie Torres: Setting a date with myself is crucial to check in on my finances and financial tasks I need to handle. It’s creating an environment like a “spa” candles, tea, jazz, me in comfortable clothes to be able to tackle some of the work. Checking in with my team helps too.
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Q3. What is an emotional trigger, and how do you find yours? How can you become more aware of your triggers so that you know what they are & how you react to them? Why is recognizing your triggers an important step for gaining control over your financial anxiety?
Rahkim Sabree: Anything that causes an emotional reaction (+/-) in you can be an emotional trigger. Meditation can help you become more self aware of your triggers. Recognizing your triggers are important because some triggers we inherit by way of contact w/ others and THEIR traumas.
Carmen Reinicke: A trigger is generally anything that provokes a strong or outsized reaction. They can be intense signals that there's work to be done on a certain subject! If you experiencing triggers around money, it's a sign that you'd benefit from professional help
Natalie Torres: This question about triggers is so important! My triggers are knowing I have to plan awkward conversations with loved ones about money. It’s still a challenge for me although I still do it. Another unexpected medical cost, during covid I had to take time off from work as I fractured my wrist and my left side of body hurt from an accident. Our emergency fund helped but it still triggered a trauma from when I didn’t have health insurance.
Joyce Marter @Joyce_Marter: I experience financial anxiety during August & December when my practice is slow & I'm spending money on vacations. I have "flagged the minefield", a tool in psychology so I can recognize this happens every year and plan for it emotionally & financially.
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Q4. How common is financial anxiety vs financial wellness? Why do you think emotions are so heavily tied to $? How do you approach your $ from a logic based place? What are the best practices for minimizing anxiety & creating a well-balanced relationship with your $?
Rahkim Sabree: Intertwining $$ & emotions isn't always a bad thing. Our emotions might be the drive we have to learn, improve, & make decisions that impact future generations financially. Healthy emotions applied to $ combined w/ financial education and a plan is a winning combo.
Carmen Reinicke: Financial anxiety is unfortunately more prevalent than financial wellness, but I hope that changes! Money is confusing (often on purpose) and many of us didn't get financial education in school/ at home.
Natalie Torres: Financial anxiety is a challenge for me still as generational #trauma is a trigger since I’m an immigrant refugee. So unfortunately that means I have to work on a daily basis to nurture my mind to come from a place of abundance not sacrifice or scarcity. The best practice to help deal with my stress is checking in with my team weekly, my therapist twice a month and friends and family that keep me grounded. A journal allows me to reflect on my blessings now vs a time when I was living paycheck to paycheck and debt.
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Q5. How can creating a financial routine help create less tension around $ concerns? What should you include in your financial check-ins / money meetings? How often should these occur and what should you be addressing during these planned sessions?
Rahkim Sabree: Routines are boring but predictable. When you have structure & predictability you leave less margin for error. You should include an audit of your changing beliefs around $$, your income vs expenses, what assets you own, & immediate, short, and long term plans.
Carmen Reinicke: Much of building wealth, paying down debt or reaching any other financial goal is about discipline! Having a routine can help you build that discipline while managing any anxiety you have around $$. How often you check in should align w/ your goals
Natalie Torres: Check often to feel comfortable. Ex. when I was broke I never wanted to check my accounts out of fear. When I decided to be courageous & consistent even if it was making a little more money checking my bank statement and noticing my debt lowering it felt good.
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Q6. Time for a hot take! Tell us what you think? Do you have to be wealthy to have financial wellness? Why or why not? What roles do you think income disparity and the gender pay gap play in financial anxieties being so common? Let’s discuss.
Rahkim Sabree: Wealth is a state of mind so I say yes, you need to be wealthy to have financial wellness b/c they are essentially the same thing. Learning how to leverage that mindset to build physical wealth is the key. Income disparity and the gender gap play HUGE roles in financial anxiety on so many levels but let's just start at something simple like asking for a raise!
Carmen Reinicke: Financial security can be achieved without necessarily being high-income or wealthy. Income and gender inequality are pervasive problems. @sharon_epperson recently reported that Black women make $1m less than white men in their careers. @MFoxCNBC has also written about this issue, and what BIPOC can do to start building wealth.
Natalie Torres: I think being financially well is feeling happy there is enough money available to cover monthly expenses for 6+ months. Especially having an emergency fund for your health. Because health is true wealth. Having financial options such as good credit (when you need to borrow money) enough money for necessities and luxuries is a great feeling. Everyone has their own definition of wealth. Depends on what you value, like when I can care for my family I’m good.
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Q7. A problem that feels too big is often best solved in baby steps. If you suffer from financial stresses, what are the best tasks to tackle first? How do you break these tasks into smaller actions so that you can baby step your way to financial wellness?
Rahkim Sabree: Take inventory of where you are. You can't determine the problem w/o looking under the hood. It doesn't work to put your head in the sand and hope it blows over. Knowing what's wrong leads to knowing who to ask for help and for what.
Carmen Reinicke: Having an overview of where you are with your finances is the first step. A good exercise may be to calculate your net worth and then work from there. If you need help but aren't sure what professionals would be best, we have you covered.
Natalie Torres: I’m constantly learning something new that comes with little steps ex when buying a property, have a checklist, answer questions that help you move onto the next task for unexpected mistakes. I shared that In my guidebook. We need to learn to keep moving.
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Q8. We all get by with a little help from our friends, and talking about our anxieties has been shown to help. But how do you know if you need to talk to a professional? A therapist? A financial advisor? All three? How do you find an expert to speak with?
Rahkim Sabree: I heard a financial advisor say recently that the role of FA is a therapist, teacher, and advisor all in one. I say you find someone who can relate to your specific set of experiences and the sophistication of what you need help with. I work w/ people in addressing financial trauma and creating a plan to move forward. I can be reached via my socials or my website
Carmen Reinicke: Sharing this article again! I've got you covered :) https://www.cnbc.com/2020/12/10/how-to-decide-between-a-financial-counselor-planner-advisor-or-coach.html
Natalie Torres: When investing, planning to make big purchases or a new chapter in our lives it’s time for help. I refer to my 4 D’s Death, Debt, Disease and Divorce are all areas that can leave you in financial ruins. CPA, CFA therapists can help.
Financial anxiety can really take a toll on your well-being, but with these proactive strategies, you can gain confidence in your personal wealth and begin living life to the fullest. Don’t hesitate — start destressing your finances today!
