With nearly one-third of UK adults feeling anxious about money, Tom Barrett explores practical ways to manage finances without letting stress take control
Financial stress is an increasing reality for many in the UK, with studies reporting a strong link between conditions like depression and anxiety with those experiencing money struggles.
According to research from The Mental Health Foundation, close to one-third of UK adults (31%) feel anxious due to their financial status, while more than a quarter (27%) feel stressed.
Understanding financial anxiety
For many people, financial anxiety can manifest into habits like constantly checking their bank balance. A recent report by Lloyd’s Banking Group found that just 55 percent of Brits feel comfortable checking their bank balance, while one in four (23%) worry about their finances at least once a week.
While checking your bank balance isn’t necessarily a bad habit, if you find yourself becoming obsessive or feeling significant anxiety, it may indicate a larger issue and could be worth considering reducing the frequency with which you check your balance.
With 17 million Brits experiencing daily financial anxiety, it’s evident that financial well-being needs urgent attention. Frequently arising from historical money concerns, overspending or the fear of insufficient resources, cultivating a healthy relationship with your personal finances is essential.
So, how can you stay financially aware without triggering stress or worry?
While it is essential to manage your finances, habits such as frequently checking your bank account can lead to stress rather than control.
Worrying about money involves not only the figures, but also the emotional weight connected to financial security.
Fortunately, there are ways to maintain awareness without allowing it to negatively impact your mental and physical well-being.
Schedule regular check-ins
Rather than engaging in regular impulsive checks, allocate specific times (weekly or monthly) to conduct a thorough review of your finances. Think of it as a financial check-in and set a recurring appointment with yourself.
During each ‘check-in’, review transactions, look for unnecessary expenses (e.g. subscriptions or direct debits you might have forgotten to cancel) and track your progress. Make necessary adjustments and stick to them.
Review your direct debits
Don’t become complacent about your direct debits.
Dedicate some time to shopping around for better deals on your regular outgoings once or twice a year. This includes things like insurance (e.g. car, home, life), phone contracts, internet providers and energy bills.
Comparison sites can make this process easier, helping you save money and improve your bank balance over time.
Build a financial safety net
This doesn’t generally need to be said to accountants, but it’s worth repeating for anyone: financial emergency funds are important.
If you can do it, setting up a small emergency fund can provide reassurance and reduce stress related to unexpected bills or expenses.
Knowing you have a safety net can make checking your finances less daunting and easier to handle.
Use budgeting tools
Even accountants need help sometimes.
Budgeting tools are a great way to manage your money without the anxiety of constantly checking your accounts.
Tools that help you budget can give you a clear overview of your spending patterns and allow you to stay proactive.
Many apps also offer features like spending summaries categorised by type (e.g. food, travel, entertainment) and goal tracking all in one place. These provide valuable insights to keep you on track, which can then reduce your anxiety.
Seek support when needed
If worrying about your finances is part of a bigger problem distressing you, it’s important to reach out for support.
Whether it’s accessing advice from a charity like caba or seeking out financial resources, there is support out there to help you build healthier money habits, reduce your anxiety about your finances and provide tailored advice realistic to your situation.
Tom Barrett is Financial Wellbeing Expert at caba
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