A Simple Exercise to Reduce Financial Anxiety

A few years ago I learned an exercise that is designed to de-clutter your mind.  While this exercise was really created to be used when you have too many things to do, I found it to be a great stress reliever, and use it anytime I’m worried about something and need to reduce my stress about whatever’s bothering me.

Given the state of the economy and the stock market, I thought it would be a great idea to share this exercise with you to help reduce any stress you may have related to your finances.

To get started… For 15 minutes, write down everything that’s on your mind.  In this case, I want you to focus on writing down everything that’s on your mind about your finances.  It doesn’t matter if you use pen and paper for this exercise, or use a computer (I use a computerized journal).  The purpose is to write down everything that is on your mind about your finances.  Keep writing until you run out of things to write.

When you’ve written down everything you can think of, review your list.  Put an “X” next to everything on your list that you have no control over.  You can even cross these items off if you want.  Things that you have no control over… well, you have no control over them, so you should not spend your time worrying about them.

Next, review the remaining items on your list.  Put a star next to everything that you do have control over and that is a priority to you.  When you have a problem or a concern about something, you should always determine what you have control over and make plans to change those things for the better.  After you have put stars next to each item that you can control and that are important to you, start making plans to improve these items.

For example, you may have listed “I need to save more” on your list.  This is something that you can control, and it’s important to you.  Now that you are aware of that, you can make plans to do things to improve this area.  You might make a note on your calendar to transfer $10 from your checking to your savings each week, or you might start a change jar, or you might start watching how much you spend so that you can save more.  The point is, this is something on your list that you can control, and by taking control and taking action, you will reduce your anxiety around your finances.

Here’s an example of what your list may look like after completing this exercise:

My 401K tanked yesterday
I’m worried that I may not ever be able to retire
I’m worried about how I’ll take care of my mom and my own family at the same time
*I need to pay off my debts
*I worry that I may not be saving enough
I’m mad about the $700 bailout plan
I’m worried that the stock market won’t go back up

In this example, I have crossed off everything that I do not have control over.  I can’t control the stock market or whether or not Congress passes the bailout plan, so I’m not going to worry about those things any longer.  Items that have a star next to them are things that I do have control over, and that I want to prioritize.  I know that I can take steps to pay off my debt and to save more, so I’m going to focus on those items now.  Items that are not crossed off and do not have a star are things that I can control, but they aren’t my highest priority right now.  They will move to the priority list later on.

After doing this exercise, I feel much better because I know what I can and need to focus on, and I know what I can let go of and not worry about anymore.

In this economy, it’s more important than ever to do what you can to improve your finances.  That means stop worrying about the things you can’t control (like what the stock market is going to do today or tomorrow or next week), and start taking action around the items that you can control (watching spending, saving more, etc.).  I hope you found this exercise helpful!