If you’ve found yourself lying awake at night, staring at the ceiling and worrying about your bank balance, you’re certainly not alone.
In fact, recent research shows that nearly half of all Australians (a whopping 46 per cent) kicked off this year already in debt.
With the cost of living continuing to rise and uncertainty around every corner, it’s no wonder money worries are keeping so many of us up at night.
But what can you actually do about it—especially when the stress feels overwhelming?
To help us navigate these choppy financial waters, clinical psychologist and best-selling author Dr Rebecca Ray recently sat down with Sylvia Jeffreys on The Pay Off podcast to share her expert advice on managing money-related anxiety.
Does money really buy happiness?
It’s an age-old question: can money really make us happy? According to Dr Ray, the answer is a bit more nuanced than the old saying suggests.
‘The research tells us that it actually does up to a certain amount,’ she explains. ‘It’s based on being able to meet your basic needs and also have a little bit left over for living well. It’s not that you have to be a millionaire… It’s more that you don’t need to go to sleep wondering where your next meal is going to come from, or whether or not rent has actually been covered.’
In other words, financial security—having enough to cover the essentials and a little extra for comfort—can make a real difference to our wellbeing. But beyond that, the link between money and happiness starts to fade.
How money stress shows up in our lives
Money worries can manifest in all sorts of ways. Maybe you’re feeling anxious, irritable, or even ashamed.
Perhaps you’re losing sleep, snapping at loved ones, or finding it hard to concentrate. Dr Ray points out that these feelings are completely normal, but they don’t have to control your life.
‘Stress, worry, anxiety, fear—it’s easy to be consumed by these emotions,’ she says. ‘But there are ways to manage them, even if you can’t change your financial situation overnight.’
Practical strategies to manage money anxiety
So, what can you do when your mind starts spiralling with financial worries? Dr Ray offers some simple, science-backed techniques:
1. Get some distance from your thoughts
‘Sometimes just getting distance from your mind is a really powerful thing to do,’ Dr Ray says. Try labelling your thoughts—say to yourself, ‘My mind is worrying right now.’
Or, write your worries down on paper. This helps contain the thoughts and gives you a chance to look at them more objectively, rather than letting them snowball in your head.
2. Ground yourself in the present
When anxiety takes over, your brain’s limbic system (the part responsible for emotions) can hijack your ability to think logically. In these moments, Dr Ray recommends grounding techniques to calm your nervous system.
- Slow your breathing: Inhale for three seconds, exhale for three seconds, and repeat for ten breaths.
- Tune into your senses: What can you see, hear, feel, or taste right now?
- Distract your mind: Try naming as many animals as you can that start with a certain letter. It might sound silly, but it gives your brain something else to focus on.
3. Acknowledge your feelings
It’s okay to feel stressed about money—these are tough times, and you’re not alone. Sometimes, just acknowledging your feelings can help take the sting out of them.
4. Seek support
If your anxiety is stopping you from sleeping or affecting your daily life, don’t hesitate to reach out for help. Whether it’s talking to a trusted friend, a financial counsellor, or a mental health professional, support is available.
Why your mindset matters
Dr Ray also emphasises the importance of your mindset when it comes to money. While you might not be able to change your financial situation overnight, you can change how you respond to it.
By practising self-compassion and using grounding techniques, you can reduce the impact of stress and make clearer decisions about your finances.
Taking action: Small steps, big difference
If you’re feeling overwhelmed, remember that small steps can make a big difference. Start by tracking your spending, setting a simple budget, or reaching out for advice. Even tiny changes can help you feel more in control.
And if you’re looking for more tips and support, you can listen to the full conversation with Dr Rebecca Ray on The Pay Off with Sylvia Jeffreys—available wherever you get your podcasts.
Your turn: How do you manage money stress?
We know that money worries are a common experience, especially in today’s climate. Have you found any strategies that help you cope with financial stress? Do you have tips for others in our community? Share your thoughts and experiences in the comments below—your advice could make a real difference to someone else.
Disclaimer: The information provided in this article is for general informational purposes only and should not be considered financial advice. Every financial situation is unique, and readers are encouraged to conduct their own research and consult with a qualified financial professional before making any financial decisions or taking action based on the content of this article.
Also read:
