The positive sides of financial anxiety

Feeling anxious about money is common and unpleasant. Financial anxiety can present itself in many ways, but often it entails worrying excessively about money, feeling irritable, having difficulty sleeping or concentrating because of money issues, and/or feeling fatigue or other physical symptoms as the result of excessive worry about money. Like anxiety more generally, financial anxiety occurs on a continuum - some people may experience intense symptoms that require intervention, while others might experience only a few or mild symptoms.

While financial anxiety can have a lot of downsides, it's important to acknowledge that some good can come from understanding anxiety in financial situations as well. At its core, anxiety is a response to stress, and moderate amounts of stress can be a good thing. In fact, research has shown that small amounts of stress can actually boost cognitive performance and memory.

Warning signal

Our bodies developed their responses to stress over time to help us manage and learn from potential threats. Anxiety, therefore, can serve as an important warning signal to us that something isn't right, either with the practical facts of our situation, or morally, in terms of our values. For example, anxiety before a purchase should be something to pay attention to. Your mind is likely signaling to you that something about the purchase is out of alignment with your goals or with your budget!

Motivator

Financial anxiety can also serve as a motivator for many people. Often, anxiety will signal a challenge, or some opportunity for us to prove our competence. These types of challenges can be as much motivating as they are daunting. Consider the popularity of "challenges" in the personal finance world. Events such as "no spend January", 30-day money "cleanses", monthly savings challenges, and others all work by creating excitement through micro doses of anxiety or stress; they are all just difficult enough to create focus and motivation for those participating in them. If you've ever participated in one of these challenges, you know the satisfaction and feeling of achievement that comes from successfully completing one- a feeling made possible in part by the stress of participation.

Flexible thinking

Anxiety also prompts us to consider multiple outcomes to obstacles or opportunities. While in extreme forms (think analysis paralysis) this practice can cause problems, in small doses it can actually be beneficial. Being aware of the possibility of multiple outcomes allows us to think through potential problems and solutions and cause us to make decisions more carefully. These types of skills are particularly useful in personal financial planning, budgeting, and investing.

It's important to note that all of the benefits to anxiety discussed here really only apply to mild cases of anxiety, or situations where the stress and worry isn't overwhelming or getting in interfering with your day-to-day life. If you find that your anxiety around money is starting to get in the way of living your life, it may be time to seek professional help. Speaking with a therapist can help you to learn ways of managing anxiety and determine if additional treatment might be beneficial.