The First Step to Overcoming Anxiety About Money Is to Face Your Own Finances.
The more you learn about something, the less intimidating it becomes. This is true for most things and of course for money. Money isn’t nearly as scary once you know it, but the first step that holds most of us back is to look at our own financial picture.
In Wealthsimple, Charles Duhigg , author of The Power of Habit, explains why he isn’t afraid of money.
He elaborates a little, but it all boils down to this:
I don’t have much of anxiety about money. When people experience anxiety, it is usually due to the unknown, because they are worried that they will not have enough of what will happen next week or next month. Once a week, I update a spreadsheet containing all my financial information, so I know down to the last dollar how much money I have in my accounts, how much investment I have, and how much I have on my credit cards. Most people shy away from this knowledge.
In short, the more you hide your finances, the scarier it gets. The good news is that there is one simple first step to take to gain control: face your own financial situation. This means that you need to draw up a budget . Check your bank statements periodically. Be realistic about what your expenses look like and come up with a plan to pay off the debt .
From now on, managing your money isn’t easy, but it’s much less daunting than you can probably imagine. Check out the full interview at the link below.
Author of The Power of Habit on Not Being Afraid of Money | Wealthsimple via Rockstar Finance