The economy may be slowly adding jobs and tipping toward recovery; but for many Americans, it still doesn’t feel like it. (Will it ever?) The National Foundation for Credit Counseling released an online poll that found that financial distress is seeping into all areas of consumers’ lives – affecting everything from their marriages to their health. Twenty-seven percent of respondents to the online poll said that their financial worries are stressing out their marriages, while 24 percent said money troubles are wreaking havoc on their health. Sixteen percent said their financial concerns are also causing them to lose sleep more than usual, and 13 percent said their “role as a parent” has been adversely affected by the stress. “Financial concerns stay with you 24 hours a day, seven days a week,” said Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, in a statement. “They are there when you wake up and when you go to sleep, at work and at home. [So] it is not surprising that this degree of prolonged financial stress manifests itself in areas other than our bank accounts.” As I thought about the poll last night before I went to bed, I pulled Robert L. Leahy’s classic 2005 self-help book, “The Worry Cure,” from my bookshelf and scanned it for a few quick tips that would apply to financial worries. Here are three that stood out above the rest. 1. Don’t jump to conclusions. This is advice that I could use myself. I tend to let my financial worries linger, lurking in the back of my mind as I carry on with other tasks. Then, when a financial hiccup occurs – say, an unexpected car repair or a costly medical expense – I panic: How much is this car repair going to cost? I’ll ask myself. What if it’s more than I can afford? Will I need a new car? I can’t afford that! What if something else happens? What will I do then? At the time, considering potential outcomes feels like I’m shielding myself from surprise; but according to Leahy, I am just making things worse. If you, too, have a tendency to catastrophize, make a list of your top financial worries and critically evaluate them. Identify the worries that you can control – and challenge those that seem over the top. For example, if you’re worried that you’re going to lose your job because your boss is acting differently toward you one day, take a step back and consider other reasons why he or she may be acting strangely. More than likely, you’ll find that you’re ascribing meaning to details that have nothing to do with you. (On the other hand, if you’re worried about your job security because you received a poor evaluation, then this is a good opportunity for you to reevaluate your work habits and figure out what you can improve.) 2. Don’t be a (financial) coward. In my first few years after graduating college, I would avoid looking at my bank account and credit card balance because the numbers made my heart race. But by ignoring the numbers – no matter how hard they were to stomach — I was allowing my credit card balance to grow faster than I realized. I was also denying myself the opportunity to look at my finances as they actually were — rather than how I wished they were – and plan my way out of my predicament. Leahy recommends that you accept the reality that your financial situation is less than stellar — and accept that you are limited in your ability to control your financial outcome. Once you have looked your financial situation squarely in the face — without hedging or burying your head in the sand – you can start taking positive steps toward fixing what you can. 3. Look back; and then look ahead. Critically evaluate your spending priorities, Leahy also recommends, and consider whether inaccurate assumptions about money are causing you to worry more than you need to about your finances. Then use this self-knowledge to combat your money woes from a more realistic place – without worrying yourself into a frenzy. For example, if you grew up thinking that your finances must be in perfect order at all times and you’re only safe if you have a certain amount in the bank, then you could find yourself running in circles and spending less than you need to in order to meet unrealistic expectations. Your bank account balance may be lower than you like; but that doesn’t mean you’ve failed at managing your money – or that you’re destined for the street. Leahy also advises that you keep your perspective as you fight back against circumstances that are out of your control. “We tend to view our income and assets as a sign of success,” writes Leahy. “But they are simply material possessions. One man who had been unemployed for a year recognized that his wife, children and health were far more important than … work … Appreciating more makes money less valuable and essential.”
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