7 Ways To Manage Financial Anxiety While Scaling Your Career

Adulting often comes with waves of money anxiety. Once you begin earning, especially at the start of your career, there is a sudden influx of new financial responsibilities.

From paying for accommodation to the standard living expenses, these expenses can induce an almost crippling amount of anxiety. The Financial Stress Survey by Market Watchfound that about 88% of their participants feel some level of financial stress, and about 65% say that their finances are their biggest source of stress. 

These statistics corroborate that finances are a source of immense anxiety. This can stem from a variety of reasons, such as a lack of control over one’s finances, unexpected expenses, and negative economic concerns. 

Although this can be overwhelming, there are proven strategies geared towards managing this anxiety, especially while climbing the career ladder. They include:

A good place to start when trying to overcome financial anxiety is building a strong mental foundation. Reflect on your relationship with money. What does it represent: safety, control, or success? Understanding the deeper associations you have with money can help you take the first step towards overcoming this anxiety. Building a healthy financial mindset is crucial for anyone looking to achieve long-term financial stability and success.  

A detailed budget is essential in managing your financial anxiety as well as forming good financial boundaries and, more importantly, habits. It’s important to divide your expenses into different sections and budget a feasible amount for each. Some of these sections include rent, living expenses, miscellaneous, an emergency fund, and more. This ownership can significantly help in managing your money anxiety. Additionally, it’s best to set up automatic debits for systems that reduce your financial anxiety, such as debt repayments and savings. It removes decision fatigue and reduces the risk of missed deadlines—both of which lessen anxiety.

A good way to reduce financial anxiety is to ensure that your money grows while sitting in your bank account. Focus on stable, diversified investment options and contributing to retirement accounts such as a 401(k) or IRA to support long-term financial stability.

If you know where every cent, or at least almost every cent of your money, goes, it’ll help you identify the areas you might need to modify. Record how much money comes in and where it goes each month, from the smallest purchases to the largest bills. Additionally, another way to track your money habits is to schedule check-ins to regularly review your financial situation. Have periodic times where you review your budget and spending towards assessing how your money is spent towards your financial goals to help you stay on track. 

A huge reason for financial anxiety is a lack of self-care and mindfulness geared towards our money mindset. I suggest creating a section in your budget that gives you a chance to enjoy your money. To reduce financial anxiety, you need to ensure the money you earn is used for curating experiences that help reduce this anxiety. 

Define your financial goals by large and small targets. Set long-term goals, such as saving for a vacation or buying a significant asset, and create a plan to achieve them. These goals require more time and planning but are important for financial stability and peace of mind.

Additionally, it’s beneficial to set short-term goals either from scratch or by breaking down long-term goals into short-term goals. Small wins like paying off a small debt can give you a sense of accomplishment and make financial goals feel less intimidating. The goal isn’t perfection; it’s to prove to yourself that you can win one step at a time. 

Either a financial advisor or a therapist can help you with money anxiety. A financial advisor can offer personalized advice on savings, investments, and retirement planning, helping you develop a strategy to achieve your financial goals, while a therapist can help you understand and work through the emotional aspects and provide you with coping mechanisms to manage stress.