Finding control when money feels overwhelming

Understanding the problem

Anxiety can change the way we view problems. A setback can seem much worse than it really is when we let our emotions take over.

If you are worried about money, that usually means financial security matters to you – which is a positive. Worrying is often a sign that something isn’t right. But it doesn’t always mean there is an immediate problem. Taking time to understand the facts, and talking things through with someone, can help separate genuine concerns from anxious thoughts.

Often, if you have money worries, it can feel easier to ignore a bank statement or account balance. But avoiding or delaying dealing with a problem can make things worse.  As with many of life’s challenges, most problems will have a solution.

Anxiety can also cause us to catastrophise. A setback can escalate in your mind until you feel that everything is going wrong. But while these thoughts are understandable, they’re typically driven more by fear than by facts.

Turning down the noise

When times are tough, thinking clearly about problems becomes more challenging.

This is why prioritisation can be a useful first step. Dealing with one problem at a time is often the simplest way to make an issue feel more manageable.

Start with a small task that is achievable, but also important. Taking one meaningful step can build confidence for tackling bigger challenges.

At its simplest, prioritisation addresses the question of what needs to be done immediately and what can wait until later. This approach helps separate immediate actions from broader financial concerns.

Reducing anxiety through action

The hardest part of overcoming money anxiety is often moving from understanding the problem to taking action. Following some clear, meaningful steps could help you feel less overwhelmed.

Alexandra Loydon, St. James’s Place’s group advice director, says: “Understanding your financial position and putting a clear plan in place can help build resilience and give you greater confidence about the future.

“Finances can be a difficult topic to discuss, but you should not feel you have to manage these concerns alone. Seeking support from family and friends, debt advice charities, financial advisers or mental health professionals can provide valuable guidance and reassurance during difficult periods.”

•    Understand your current position

People who understand their financial position – income, expenditure, debts, savings and investments – are better placed to identify what is the priority. Start by creating a simple summary of your finances to understand your overall position.

•    Pick a priority

Once you’ve assessed your position, choose a priority. It is important to avoid the temptation of tackling everything at once. Small, consistent actions are often more effective than trying to solve every problem immediately.

•    Establish a routine

Regular reviews can help reduce avoidance. Managing money becomes easier when it forms part of a consistent routine. Small steps taken consistently can make a big difference over time.

Whenever possible, building an emergency fund brings many advantages. Aim to cover three to six months’ spending to build protection in case of an unexpected financial emergency. Having that buffer can also provide peace of mind.

•    Seek support if needed

When a situation feels unmanageable, ask for help. If your financial worries are putting too much pressure on your mental health, consider seeking help from a mental health professional.

A financial adviser can help you with a plan for your money. They can provide an objective account of your finances and help you make decisions that align with your short- and long-term goals.

“During times of financial uncertainty, we may feel inclined to avoid the situation and put off tackling the problem head-on,” Alexandra adds.

“However, this only makes matters worse, both financially and emotionally, and it’s important to confront your financial worries as soon as you can, assess your finances and make a plan to action. Speaking to a debt planner or financial adviser can be useful as they can answer any specific questions you may have, and offer tailored advice based on your personal financial situation.”

Clarity reduces fear

Feelings of anxiety may tempt you to try and solve all problems immediately, but that is not always the best solution.

Financial resilience comes from slowing down, understanding your situation and taking manageable steps forward.

A clear plan helps separate what matters from what can wait. When you focus on the information that matters to you, take one step at a time, and stay consistent, a plan can help restore a sense of control, especially during uncertain times.

The value of an investment with St. James's Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.