According to a recent Keeping Your Money Safe survey conducted by GOBankingRates, 29% of respondents said they worry about the safety of their money sometimes – about once or twice a month. About 17% worry about the safety of their money often – once or twice a week. And 15% of respondents admitted to worrying about the safety of their money more than twice a week.
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Worry can lead to anxiety, and frequent anxiety can lead to a whole host of other problems. If you think you’re worrying too much about the safety of your money, read the signs below and learn how to stop.
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Signs that you worry too much about your money
Here are the signs that you may be too focused 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 if you keep the majority of your savings in cash or low-yield accounts and avoid investing altogether, it could be a sign that you have an excessive fear of losing money.
Solution: Diversify your portfolio
“Spreading investments across different asset classes can reduce risk and provide greater security,” said Meyer. “A well-diversified portfolio is less likely to be wiped out by a single market event.”
Sign No. 2: Avoid all risks
Meyer explained that refusing to invest in anything other than ultra-safe assets such as government bonds or insured deposits could be a sign of excessive caution in handling money.
Solution: Focus on long-term goals
“Remember that investing is a long-term game,” he advised. “Short-term market fluctuations are normal, and focusing on long-term goals can help reduce anxiety.”
Sign No. 3: Constant monitoring
Meyer said if you check your account balance multiple times a day or follow every market fluctuation, you may be overly concerned about the safety of your money.
Solution: Find out more
“Understanding how investments work and why certain risks are necessary for growth can help ease some of your fears,” he said. “Knowledge can empower you to make informed decisions with more confidence.”
Sign No. 4: Paralysis through analysis
Meyer pointed out that waiting too long to make financial decisions or not making any decisions at all for fear of losing money can also be a warning sign.
Solution: Set up automatic investments or contact an expert
“Automating deposits into your savings or retirement account allows you to stay on top of things without having to constantly worry about when to invest,” he explained.
Meyer also said that sometimes just talking to a professional about your concerns can be helpful. “A financial advisor can create a customized plan that fits your risk tolerance and gives you peace of mind that your money is being managed safely,” he said.
5 additional tips to reduce financial anxiety and stress
Crissi Cole, founder and CEO of Penny Finance, said the first step when worrying too much about money is to address the problem head-on.
“Money may be the trigger, but the underlying response is fear,” she said. “Managing fear is about controlling your nervous system – your attachment to money and how it makes you feel. No matter how much money or how much money knowledge we have, if we are caught in cycles of poor management and perception, our feelings behind it, and therefore our response, are unlikely to change.
“By understanding when and why we enter a worry cycle, we can break free from it. You don’t have to eliminate all worries about money – some worries show that you care about your financial future. The important thing is to be aware of how, why and when you feel anxious. Understand these feelings and use these insights to manage them more effectively.”
Cole shared these additional tips for dealing 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 take small steps,” Cole said. “If your goal is to save $1,000 in a year, break it down into small, bite-sized pieces. Small steps add up.”
3. Reduce 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 down. Knowledge is power.”
4. Build up your emergency fund. Cole recommends thinking of emergency funds as a reserve fund for all of life’s unexpected events.
5. Build up your emergency fund. “It will take years to reach that million dollar goal, but it’s doable,” Cole said. “Start small, start now. Your future self will thank you.”
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This article originally appeared on GOBankingRates.com: 4 Signs You’re Worrying Too Much About Your Money (And 4 Tips to Help You Stop)
