By: Jovan Johnson, MBA, CFP®, CPA/PFS

According to Forbes, “Of the 2,646 adults interviewed by Northwestern Mutual, 85% reported feeling some form of financial anxiety.” Life is full of anxiety, and money is certainly no exception. We would much rather not think about our current financial situation, because it might make us feel guilty or unsure of the future. There is only one way to reduce anxiety about money: You must FACE IT HEAD ON! That’s right, in order to lose the nerves and uncertainty that comes with handling your finances, you must be intentional with educating yourself. Take steps TODAY towards being in full control of your finances.

What most people don’t understand is that the more you run away from your problems, the worse they become. You are the CHANGE YOU SEEK! We’ll share six ways to reduce your anxiety about money. 

  1. Find a Place of Peace

As silly as it may sound, make sure that there is no added stress in your external environment when you finally decide to sit down and take care of your finances. Find a quiet place where you can be productive and be at peace with your financial decisions. Don’t judge yourself for any past financial decisions you have made, focus on an optimistic future. 

  1. Reward Yourself

No one likes to penny pinch, so when you reach a financial goal make sure to reward yourself. Your money should not restrict you from living and doing the things you truly desire. Use those credit card points to enjoy a lavish vacation. 

  1. Planning

As Benjamin Franklin quoted, “By failing to prepare, you are preparing to fail.” Life happens, and all we can do is prepare ourselves as much as possible. Creating a solid financial plan will prepare you for unexpected events that are bound to happen. Also, creating a large emergency fund (6-12 months) will provide you with a high level of comfort and security when these events happen.  

  1. Be Positive

Handling money is more about your mindset than the actual numbers. Therefore, having a positive mindset can make a significant difference in your ability to make sound financial decisions. Not only will this provide you with a clear mind when challenging situations arise, but it will also enable you to feel good about your decisions at the end of the day. With a positive mindset and spirit, you can wipe away any worries or fears you may have about your money. 

  1. Stop Comparing Yourself 

This tip applies to all of us. With social media outlets easily accessible, we tend to compare ourselves to others that may seem more “established”. However, we all are special and have a unique purpose here on earth to fulfill. Things will fall into place when the time is right, and preparation meets opportunity. When we become confident and believe in our own abilities, we reduce the anxiety and fears we have about our money. 

  1. Educate Yourself

If you are uneducated about something, you are bound to make unsound decisions based on someone else’s viewpoint. It is important to become educated about your finances so that you can take control and not let others dictate how you think. Financial education is the beginning of achieving financial independence. Financial education will pay dividends for the rest of your life.