4 Signs You Worry Too Much About Your Money (and 4 Tips To Help You Stop)
Written by
Cynthia Measom
Edited by
Levi Leidy
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
According to a recent GOBankingRates’ “Keep Your Money Safe” survey, 29% of respondents said they worry sometimes about whether their money is safe — about once or twice per month. Approximately 17% worry often — once or twice per week — about the security of their money. And 15% of respondents admitted worrying about money safety more than twice weekly.
Worrying can lead to anxiety, and frequent anxiety can result in a whole host of other problems. If you think you might be obsessing too much over the safety of your money, read through the following signs, and also learn how to stop.
Signs You’re Worrying Too Much About Your Money
Here are the signs that you might be focusing too much on the safety of your money and their solutions.
Sign No. 1: Overemphasis on Cash Holdings
Tyler Meyer, CFP and founder of Retire to Abundance, said that if you keep most of your savings in cash or low-yield accounts, avoiding investments altogether, it could indicate that you have an excessive fear of losing money.
Solution: Diversify Your Portfolio
“Spreading investments across different asset classes can reduce risk and provide more peace of mind,” said Meyer. “A well-diversified portfolio is less likely to be wiped out by a single market event.”
Sign No. 2: Avoidance of All Risk
Meyer explained that refusing to invest in anything beyond ultra-safe assets, like government bonds or insured deposits, can be a sign of excessive caution when it comes to money.
Solution: Focus on Long-Term Goals
“Remind yourself that investing is a long-term game,” he suggested. “Short-term market fluctuations are normal, and focusing on long-term objectives can help reduce anxiety.”
Sign No. 3: Constant Monitoring
Meyer said that if you’re checking your account balances multiple times a day or obsessing over every market fluctuation, you might be overly worried about your money’s safety.
Solution: Educate Yourself
“Understanding how investments work and why certain risks are necessary for growth can alleviate some fears,” he said. “Knowledge can empower you to make informed decisions with more confidence.”
Sign No. 4: Paralysis by Analysis
Meyer pointed out that taking too long to make financial decisions or not making any decisions at all due to fear of losing money can also be a red flag.
Thanks!
Solution: Set Up Automatic Investments or Consult With an Expert
“Automating contributions to your savings or retirement accounts can help you stay on track without constantly worrying about when to invest,” he explained.
Meyer also said that, sometimes, just talking through your concerns with a professional can help. “A financial advisor can create a tailored plan that aligns with your risk tolerance, providing reassurance that your money is being managed safely,” he said.
5 Additional Tips To Lessen Financial Anxiety and Stress
Crissi Cole, founder and CEO at Penny Finance, said the first step if you’re worrying too much about money is to tackle the problem head-on.
“While money might be the trigger, the underlying response is anxiety,” she said. “Managing anxiety is all about managing your nervous system — your attachments to money and how it makes you feel. No matter how much money or money knowledge we have, if we are stuck in cycles of poor management and perception, our feelings behind it, and therefore, our response, likely won’t change.
“By understanding when and why we enter a worry cycle, we can break free from it. You don’t need to eliminate all worry about money — some worry shows you care about your financial future. What’s important is being aware of how, why and when you feel anxious. Understand these feelings and use that insight to manage them more effectively.”
Cole offered these additional tips to help deal with money worries.
1. Know your numbers. Cole suggested creating a mini budget to track income, expenses and remaining funds.
2. Create an action plan. “Think big, then get small,” said Cole. “If your goal is to save $1K in one year, break it down into tiny, bite-sized pieces. Baby steps add up.”
3. Eliminate debt. “Ugh, the D-word,” Cole said. “Everyone hides it, but everyone has dealt with it at some point. Your first step? Write it all out. There is power in knowing.”
4. Build your emergency savings. Cole recommended thinking of emergency savings as an opportunity fund for any curveball life throws your way.
5. Build your nest egg. “It’ll take years to hit that million-dollar goal, but it’s doable,” Cole said. “Start small, start now. Your future self will thank you.”
More From GOBankingRates
