Financial Anxiety Is Real. Here's How to Manage It

The latest data shows 84% of Americans are worried about the economy. And some feel more financial anxiety than others. Among Gen Z, 39% rate themselves as "very" or "extremely" stressed about making the wrong choices with their personal finances, according to Ernst & Young.

Here's what financial anxiety looks like for some people and what you can do if your finances feel too overwhelming.

What is financial anxiety?

Financial anxiety can be any stress or worry related to your financial situation. It may be brought on by a specific situation or the combination of multiple pressures.

Some situations that cause financial anxiety are:

• Losing your job
• Accumulating too much debt
• Receiving a pay cut
• Mounting bills or other expenses
• General worry about the economy

While most people experience some sort of financial stress at some point, financial anxiety may be persistent for others.

Some people deal with stress by overspending or completely ignoring their financial situation.

No matter how you might deal with the anxiety, the good news is that there are ways to improve your situation.

How you can manage your financial anxiety

Half of all adults who are in debt have felt financial anxiety, according to WebMD. And while everyone's situation is different, you can take some common actions if you're feeling financially overwhelmed.

Here are some suggestions from the UK's National Health Service and WebMD:

• Stay physically active and spend time with friends and family to help your mental health
• Get advice on how to pay off your debt
• Talk with experts to determine what's causing your financial stress
• Devise a budget
• Build an emergency fund
• Create a strategy with a financial planner

How to take the first step

Once you've determined the source of your financial anxiety, the first step is figuring out what you can do to help improve it.

For example, if you're worried that you don't have any money saved for a rainy day, then opening a savings account and building your emergency fund may be the first step.

Or, if you've accumulated too much debt, your first step may be to devise a debt payoff plan. For example, using the debt snowball method to pay off your smallest debts first and working up to your largest debts may be a good strategy.

Some people may feel more in control of their finances using a financial literacy app. These apps help you learn financial skills and money management. Topics include debt, saving money, and investing.

And finally, talking to a financial planner can be a great first step for anyone worried about their finances. A financial expert can help you find the best debt payoff strategy, learn the benefits of budgeting, and how to invest your money.

A great place to start is at the National Association of Personal Financial Planners (NAPFA), where you can search for a financial planner that fits your needs. Financial planners can help you understand your situation and make a plan to cope, so you don't have to figure everything out alone.

Personal finances can be stressful for many of us, but taking steps to get them under control could go a long way toward alleviating financial anxiety.