Money Anxiety: How to Overcome Financial Stress

Estimated reading time: 14 minutes

Explore the impact of money anxiety and how to take proactive steps towards financial stability and peace of mind.

Is money anxiety making you ill? Perhaps you’re struggling to sleep at night because your money anxiety takes over.

You’re not alone.

If you don’t worry about money, it’s likely because you panic when it becomes a problem.

Try not to do that because tackling debt standing before the pit of fire can be tough.

What once kept people afloat has sunk with COVID-19, which has changed the state of the economy.

Recovering from a “COVID-19 hangover” will take time as consumers and retailers will be more cautious.

I also know that telling you you’re not alone means little because that doesn’t solve the problem.

The reality is there is no quick fix; however, you can take steps to make the process easier.

Money Anxiety Over Job Loss

Canadians have had a wake-up call over the past 2 years since Covid-19 landed on our doorstep.

Many were laid off or let go permanently as businesses struggled to keep the doors open, even for curbside pickup.

Although consumers wanted to help support small businesses, the money wasn’t there for them.

To add salt to the wound, prices of almost everything are increasing, especially groceries and utilities.

Related: How to save money buying meat at the grocery store.

In fact, in the past four months, the price of ground beef has risen by 5 percent, steak and bacon are up 4 percent, and chicken is up 3 percent, according to Statistics Canada data.

Meat Prices Are Heating Up In Canada

Although we are debt-free, we still have money worries because if I get sick or die, we lose my income.

We are prepared with life insurance policies in case of death, and even so, we worry.

Having a financial plan leading into retirement is fantastic, but anything can happen.

This is where plan B comes into play, but even that can become a source of stress for those with little to no funds.

Money anxiety is lifelong; however, there’s that fine line between feeling better about where you stand as opposed to falling over.

Rental Money Anxiety

Those who owe a mortgage or pay rent also feel the financial crunch.

How am I going to pay my rent?

If you’re unlucky, your landlord is cashing in and putting up their rental for sale.

With houses fetching over $100,000 asking prices, many older people, such as landlords, are selling.

Being a landlord is not for everyone, so for those who want out, now is the time to cash in.

As a tenant, you’ll need to find another rental, and the prices are scary now.

How would a rental increase affect your monthly budget?

Just renting a room in a city such as London or Ontario can cost up to $1000 all-inclusive.

A one-bedroom apartment in our city in the Greater Toronto Area starts at $1299 plus utilities.

Money Anxiety Paying The Mortgage

For those of you who have a low-interest mortgage but are on the high end of your budget, money anxiety can be a huge burden.

Just about anyone who owes money and is relying on the government for funding is trying to pick themselves off the ground.

It was and still is a financial blow to so many people, and it could take years to see recovery for all Canadians.

Money anxiety is real and it can cause depression, stress, and other mental health problems.

I’ve learned over the past two years that we can’t let anything stop us from being happy.

Money is important, and I’m not trying to downplay it; however, so is our well-being.

Someone recently emailed me about his money anxiety, and he’s not the first, as I get them often.

It’s easier to talk to someone you don’t know about money than it is someone you do know.

A Couple With Money Anxiety Needs Guidance

Dear Mr. CBB,

I’ll get right to the point about why I’m emailing you since I know you are very busy.

We are struggling financially, and I’m unsure what to do.

Our money worries are intense, and we don’t want to ask relatives for help, let alone talk about it.

My wife lost her job, which nets $2200/month, and I’m working from home, earning my full income.

She has gone into a depression because she misses her coworkers and earning money.

The last thing she expected was to be collecting unemployment. I guess no job is ever secure.

We are also being pulled relatively thin when paying our monthly bills and debt.

Currently, we have a mortgage of $1500 a month, a credit card debt of approximately $23,000, and two car payments of $475/month and $350/month.

On top of this, one child is homeschooled, which prevents her from looking for another job.

I’m earning enough to pay the bills, but we’ve had to cut off our retirement savings.

We are worried that something will happen and we won’t have anywhere to turn.

What do you suggest we do to start improving our financial situation?

Bob, Belleville, Ontario

Tackling Money Anxiety Head-On

Hi Bob,

Thanks for being strong and reaching out to me about your money anxiety.

I know it’s a tough place, and I am stepping up to say help is needed.

We often just need to get what we want to say off our chest because we don’t want to burden those close to us.

Most importantly, you’re seeking help before something goes wrong.

From the information you provided, I can tell you that you’re not alone in this fight to recover financially from COVID-19.

There are a few things I will suggest to at least give you both some direction and peace of mind.

First off, you both have to be committed to finding ways to reduce or get rid of expenses you can do without.

It now becomes a game of wants and needs, so you must choose wisely.

Let me create a list below of how we reduced our bills when Mrs. CBB lost her job, and we were living on one income, just 3 months after buying our home.

The Canadian Budget Binder Budget was born in 2012, although it was in 2009 that she lost her job.

In between those years, we managed our money without a budget, although we wrote everything down.

It wasn’t until I started this blog that budgeting took center stage in our lives; we don’t regret it.

Tips To Reduce Money Anxiety

• Creating a budget is a top priority, so you know exactly where you stand. (You can use our free budgets)
• Read our 10-step mini-budgeting course if you’re unfamiliar with how a budget works.
• Are there any utility bills you can reduce or get rid of? Cable, Home Phone, Internet? We canceled our home phone and cable this year, and it felt great. I did, however, get a Freedom Mobile phone.
• Follow the time of use chart to optimize how much energy and water your home uses. (I set the time on our washing machine for the middle of the night).
• Skip eating out, buying beverages, or snacks on the go. Pack it before you leave the house.
• Take advantage of reduced products, grocery flyer sales, coupons, coupon apps, and rewards points. We currently have almost 8 million PC Optimum Points, which we use at grocery stores and at Shoppers Drug Mart.
• Check out other apps such as Survey Junkie, Neilson Homescan, Flash Food, Checkout51, KOHO, Ampli, Rakuten, My Points, Receipt Hog, and many more, which you can find on my Canadian Savings Page.
• Start purging your home for items you don’t use and sell them whether by hosting a garage sale or virtually online with Kijiji or Facebook groups.
• Are you reading your receipts and bills? Start doing that to see if you find any errors. Learn about The Scanning Code of Practice.
• Is there a possibility of renting a room or hosting an international student?
• Talk to your credit card company and ask if they can lower your interest rate. (worth a shot) or transfer the debt using a balance transfer option.
• Your bank may help with debt consolidation with a lower interest rate on a loan or line of credit (not including the mortgage).
• Double-check with your mortgage company to see if you have a mortgage forgiveness month.
• Work overtime if available and track your hours.
• Find a way to earn extra income, whether working for someone else as a second job or using your skills to earn cash.
• Hold off on any renovations unless it’s an emergency.
• Start saving for emergencies, even if it’s a dollar a day or $5 a week. Anything is better than nothing.
• Only shop the sales or second-hand to reduce clothing costs and other household needs.
• Consider selling one of your vehicles if you don’t need it and pay off what you owe.
• Are you paying bank fees? If the answer is yes, then get a new bank and close it.
• Mrs. CBB has used PC Financial since it opened, and I have used it since I moved to Canada. There are plenty of options available.
• Talk to a financial advisor about your retirement savings and see what advice he/she offers you.

These are just some of the essential tips that popped into my head; however, this blog is filled with ideas and free budgeting tools.

I hope I’ve provided some form of stress reduction by letting you know options are available.

Let me know how things go. Thanks for reaching out.

Mr. CBB

Create A Side Job To Reduce Money Anxiety

I wanted to point out something that both Mrs. CBB and I noticed happening on our street.

A young man lives up the road with his mother and brother, both in their 20s.

I was chatting with him the other day about what he’s doing with the furniture he’s finishing.

To our surprise, he said he was struggling to find a job to save money for school, so he created one.

He picks up any free wood furniture he can refinish and sell for profit.

He’s been doing very well with this cash business he created to help reduce money worries.

It was nice to see his inventiveness and that he wasn’t sitting around moaning about not having money.

Often, you have to put yourself out there, whether it be offering gardening services, dog walking, pet sitting, or selling low-risk food or preserves from home.

Low-risk items that can be sold more easily now under new rules in the province include most bread and buns (without fillings or meats, etc), most baked goods (but no custard), chocolate, hard candies, pickles, jams, preserves, granola, trail mix, brownies, muffins and cookies (unless the icing requires refrigeration), as well as coffee beans and tea leaves. 

CBC New Rules For Home Based Food Businesses 2021

Although not everyone can jump into furniture refinishing, he’s found a way to earn extra money.

I also applaud him for chatting about his money anxiety, which is difficult for people.

What once was a taboo topic has eased into daily chit-chat.

I was stressed when I moved to Canada, not knowing what I could do for a career.

Strip Down To The Basics

Final thoughts: strip your money down to the bare bones and create a reasonable financial plan.

For those of you who are working with basic-level income, I wish I had more answers, but I don’t.

At the end of the day, we are left to spend less (using the tips above) or earn more (extra income, second job).

Oh, and for the love of all things money, stop caring what everyone else thinks about what you have and don’t have.

The odds are that they have more debt than you do.

Discussion: Have you ever talked to someone about money worries? Who did you turn to, and what steps did you take to work out a financial plan? Leave me your comments below.

Mr.CBB

Recent CBB Posts That You May Have Missed

Below is a recap of my blog posts in the past week.

Support CBB, and I’ll continue working to bring you the best information on frugal living and finance.

If you’re on Pinterest, follow my Pinterest Social Media Account. Let’s PIN together.

• 18 Crazy Things We Do As Extreme Savers
• Father’s Day 2021 Gifts, Crafts, and Dinner Ideas
• Summer Fresh Keto Lemon Pasta With Ricotta Cheese and Herbs
• Budget List Expenses That May Be Ruining Your Budget
• Where Can I Find A Happy Place?

Finance Read Of The Week

Is it better to rent or to buy a house? Well, it depends on the person and their debt-to-income ratio and credit score.

Not everyone can afford a house, especially in today’s market, so renting is a viable option.

An interesting point in this article states that renting is not all it’s cracked up to be.

I must agree it’s certainly not where we wanted to be.

Sure, renting has its time and place. As a student, for instance, it almost always makes sense. But when you have a young family and you’re wanting to put down roots in a community, looking to provide a stable home near a good school for your kids, renting sucks.

Lowest Rates Canada

Before we bought our home, we rented a basement room, and although it wasn’t ideal, it worked for us.

It helped us to save money for a down payment, and when the markets were in our favor, we jumped in.

That was back in 2009, and not a day goes by that we aren’t happy we made the moves we did.

Mr. CBB’s Thoughts Corner

We all have dreams of being the best we can be at something and being rewarded with money for our efforts.

Isn’t that why we attend college and university or take over the family business?

Although it seems true then, not everything works out the way we want.

You must work hard to stay motivated and find another route.

From a young age, we wanted to be somebody or do something that would save the world.

For instance, I wanted to be Superman, and I am, but just to our son.

There are no financial gains there, love, and I most certainly did not save the world.

However, as a dad, I saved his world.

You’ll always be something special to someone but don’t forget the importance of finding yourself.

If you’ve experienced bumps in the road, look for the other route, and things will fall into place.

Landscape And Garden Tip Of The Week

When I landscaped our front yard, I had to work with a slope on the right side of our house.

I used large rocks to create a tight wall and included steps in between to access the side of our house.

The rock wall must be secured properly, or the rocks will shift over time, so I didn’t cut any corners.

I filled the inside of the retaining wall with soil, two bushes, and a burning bush that was already there.

At the bottom of the burning bush, I added some purple ground flowers, which don’t need attention apart from water.

The idea was to create a rock garden that allowed us to fix the slope and maintain it low.

It must have worked out great, as people who walk by always compliment us if they see us outside.

The article ” How to Decorate A Sloped Yard ” has some great tips and photo ideas.

Weekend Recipe Pick

I grill lots of meat and salmon in the summer on the Akorn Kamado Grill.

Years ago, we removed our propane grill, went with charcoal, and never looked back.

I buy charcoal from Costco Canada for $14.99 and grill it in the winter.

Although I always marinate meats that I grill, I still like a dipping sauce on the side.

This Cowboy Butter Sauce is full of spices and, of course, butter, which makes it keto-friendly.

This sauce is on our list of recipes to try and is so simple to make.

What dipping sauces do you like for your BBQ meat and fish?

Another thought is to use this recipe on grilled vegetables.

The taste would be amazing. Drool!

Find The Full Recipe Here.

• 6 tablespoons butter, melted (grass-fed butter is best for this recipe)
• Juice and zest of half a lemon
• 4 cloves garlic, minced
• 1 tablespoon Dijon mustard
• Pinch of cayenne pepper
• 1/4 teaspoon paprika
• 2 tablespoons fresh chopped parsley
• 1 tablespoon freshly chopped chives
• 2 teaspoons minced thyme
• 1/4  teaspoon crushed red pepper flakes
• Salt and freshly ground black pepper

Saturday Search Term Giggles

These are keywords that readers typed into their search engine and landed on this blog.

I get quite a few of these daily and pick some of the best to feature here.

• DIY haircuts for men – No chance I’d be cutting my hair.
• Money grows on money trees – Funny, we have a 12-year-old money tree, and no luck for us.
• Saving money using a budget – There you go.
• Rhubarb recipes without the rhubarb – what? Hahaha!

That’s all for this week, CBB Friends.

Have a great week.

Mr. CBB

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• Not All Parents Can Afford A Home School Plan
• How To Reduce Stress When Buying A Home