Splurging Money? You Might Have Financial Anxiety; Here Are 5 Tips To Deal With It

Everybody has the right to spend their hard-earned money as per their wish. However, we cannot create a solid finance portfolio unless we spend judiciously and make sound investment choices.

Some people are reluctant to spend their money and some have high expenses, EMIs, and high credit card overdue. When a recession hits, many people lose their job or are constantly worried about being unemployed. All these factors contribute to financial anxiety.

We connected with Parth Shah, a finance and business content creator, who said that financial anxiety is the worry that a person will not have enough money or resources to earn money to satisfy the needs and expenditures or “appealing commodity diversions around us.”

How To Deal With Financial Anxiety?

Shah said when he finished college, he also spent recklessly. Many people have the habit of swiping credit cards for big amounts and only paying a portion of it when they must be clearing the overdue. Some people spend heftily on parties, travelling and shopping to maintain their social status or become a part of a social group.

Shah had been through the same. However, at one time, he lost his job and realised that he did not have enough savings to sustain a lifestyle that he had created for himself. When a person has to live a shallow lifestyle, they have to find a solution to earn more money or make peace with the new and cost-cutting lifestyle.

Shah said when he got a job that paid him ₹50,000 a month and his credit cardoverdue was around ₹40,000, he divided his salary into three parts. Within three months, he paid his dues, although, by that time, he also had to pay a heavy interest as well.

“Every month, I paid ₹4,000, which was my due EMI and 20% extra just to make sure that the EMI is paid before time to improve my credit score,” he added.

When a person is experiencing financial anxiety, they should cut on luxuries like fancy hangouts and plush eateries. Instead, one must focus on basics, i.e., food, clothes and a roof overhead, which is what Shah did for the next six months.

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What Not To Do When Experiencing A Spell Of Financial Anxiety?

• Avoid delving deeper into the web of credit card dues. One must develop strategies to get out of it and think twice before swiping cards the next time.
• Face your anxiety and accept that you will be struggling with money matters for a while. If you follow a routine of sound financial decisions, you will leave the anxiety behind.
• Reduce your careless spending that feeds your passion, instead focus on the necessities only.
• Do not let yourself rust if or when you lose your job. Brush yourself, update the resume (Skill You Must Add To Your CV) and start applying. “Don’t let life freeze,” he added.
• If you are unemployed and EMIs are bouncing, you must make a map of the situation and determine the root cause of the problem. It will help you make an informed decision in the future and take action accordingly.

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