Anxiety and Bad Financial Habits

 Breaking the Cycle: Anxiety and Bad Financial Habits

For many of us, anxiety can feel like an unwelcome passenger we carry daily. It colors our choices, complicates our priorities, and, in some cases, sabotages our financial well-being. If you’ve ever found yourself over-shopping to self-soothe or avoiding bills out of dread, you’re not alone. As a Black woman living with anxiety, these struggles can feel magnified by the unique pressures we face. Let’s unpack how anxiety fuels bad financial habits and explore ways to break the cycle.

Understanding the Connection

Anxiety thrives on fear, and for many, money represents security. When anxiety kicks in, we may react in one of two ways:

1. Over-spending: Treating yourself can be a healthy practice, but when it’s a knee-jerk reaction to stress, the dopamine rush is fleeting. Anxiety-driven spending often leaves us feeling worse, as the guilt of overspending compounds the original stress.

2. Avoidance: On the flip side, anxiety can lead to financial paralysis—ignoring bills, avoiding budgeting, or procrastinating on financial planning. This avoidance only increases the pressure as responsibilities pile up.

Why This Hits Differently for Black Women

As Black women, societal pressures to “have it together” and look the part can fuel spending on appearances, even when our budgets say otherwise. The need to project success is often tied to systemic racism and generational financial inequities. When compounded by anxiety, these external pressures can lead to dangerous cycles of debt and stress.

Finances is a whole conversation, chile!

So, knowing me is to know my money management is horrible! I have never created a budget, like ever! I spend like a street pharmacist because mentally, I know it will return. However, I definitely avoid my responsibilities. Why? I don't know. Literally had a moment when I avoided going home because I knew my landlord was there. Yes, I was behind on rent. And the crazy part is that I had the money! Even more crazy is that I had a very understanding landlord. I say "had" because I am no longer in that apartment. My bad management has led me back with family, unfortunately. I had so many resources I could have taken advantage of, but because of shame, I avoided them.

As I am going through trying to get myself together mentally and financially, I will share resources. I have included a bill tracker and will find a budget manager or create one.

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Steps to Break the Cycle

1. Acknowledge the Root Causes:

Anxiety often comes with feelings of shame or failure. Remember, you’re not alone, and it’s not your fault. Seek therapy or a trusted support group to begin addressing the emotional roots of your financial behaviors.

2. Set Small, Realistic Goals:

Overhauling your entire financial life at once can feel overwhelming. Start small:

• Commit to checking your bank balance once a week.

• Pay one overdue bill or set up an affordable payment plan.

3. Create a Spending Buffer:

Build room in your budget for guilt-free spending. Even if it’s just $20 a month for little treats, having a designated amount can help you stay on track without feeling deprived.

4. Use Technology to Your Advantage:

If you're looking for budget manager apps, here are a few popular options:

• Mint: Tracks spending, creates budgets, and provides financial insights.
• YNAB (You Need A Budget): Focuses on giving each dollar a job, helping you prioritize spending.   
• Personal Capital: Offers comprehensive financial tracking, including investment and retirement accounts

5. Give Yourself Grace:

It’s okay to mess up. Breaking financial habits tied to anxiety takes time. Celebrate small wins, and remember that progress, not perfection, is the goal.

Resources and Community

Find support in financial educators who understand the intersection of mental health and Black womanhood. Platforms like The Budgetnista, My Fab Finance, and local credit unions often provide free resources tailored to our experiences.

You’re More Than Your Bank Account

Remember, your worth isn’t defined by your financial status. Tackling bad money habits caused by anxiety is an act of self-love. The journey is challenging, but every small step you take is a win.

Do you struggle with anxiety and money? Let’s keep the conversation going in the comments—what’s worked for you?

BONUS!

I’ve included a bill tracker!