How To Stop Thinking About Money - Investors Psychology
How To Stop Thinking About Money
It's difficult to avoid worrying about money when it affects our everyday lives. However, learning how to stop thinking about money will benefit your mental health in the long run. Finances are a considerate stressors for most people - almost half of all Americans say money is negatively impacting their mental health.
Finding ways to increase your income can feel like the obvious answer to stop thinking about money, yet it's not always that simple. Many people obsessively think about money in ways that do little to actually help them obtain their goals, and instead just causes them to lose sleep over it.
Why are People Obsessed With Money?
Those from unfavorable socioeconomic backgrounds suffer, from worrying extensively about money, to a greater extent than those who are well-off. After all it's logical - odds are you're not worrying as much about money if you're not struggling to pay your bills on a day to day basis.
With that being said, there are plenty of people who'd like to stop thinking about money even though they already have more than enough. At that point, it's an obsession and needs to be treated as such. Which leads us to our next point.
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| Photo by Alexander Grey on Unsplash |
Why Do I Worry About Money When I Have Enough?
There are two common scenarios as to why someone would worry about money when they have enough of it already.
1. They're Simply Obsessed With Money
People can be obsessed with different things, with one of those things being money. Sometimes the obsession with money can be to a fault, or even pathological. It's not unheard of that some financially very successful individuals suffer from high-functioning autism, in which monetary rewards stimulates the brain more than social aspect.
Nonetheless, you might be obsessed with money even if you're not suffering from highly-functional autism. In these cases it's commonly the dopamine reward system being responsible for such obsession. This means dopamine is released in your brain when you for example see your bank account value increase or stocks go up.
2. They Suffer From Money Anxiety
Money anxiety is a common reason why someone might worry about money when they have enough. Often it presents in individuals who grew up under difficult financial circumstances. You might have enough money to pay your bills and even save a buck, but you're still constantly worrying. Maybe you're afraid that you'll lose it to a major expense or some other unforeseen event.
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How To Stop Thinking About Money
There are some different alternatives how to stop thinking about money. Specifically, it depends on what the reason is for these thoughts. Here are a few general recommendations.
1. Go For a Walk or Work Out
Physical exercise is one of the best ways to clear your head when it's going in overdrive, even research support this. Just taking a short walk or going to the gym can have great benefits both on your mind and body. Afterwards you won't feel as obsessed with money and may approach the topic in a more sensible way, or maybe you don't feel the need to think about it at all.
2. Make a Budget
Having a budget can help you avoid money anxiety and make you keep better track of where your expenses are coming from. This may help you figuring out ways to save money if you're in a difficult financial situation, thus helping with the stress from money. A scientific study found that financial planning is the best way of reducing monetary stress.
3. Get Professional Help
We suggest seeing a mental health care professional if there are any underlying problems related to gambling, addiction or obsessive thoughts that is causing you not being able to stop thinking about money. Financial planning and physical exercise may not be of any benefit in severe situations like those aforementioned.
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How To Stop Worrying About Inflation
It's hard to stop worrying about inflation when the current rate in the US is over 7% and for some countries in the world above 20%, with no signs of slowing down.
Effects of Inflation
Inflation doesn't just make everything more expensive in the short term, it also leads to the national banks having to raise interest rates in order to combat it. This in itself leads to the economy cooling off, as loaning becomes more expensive and less money is changing hands.
As a result you might not just be worried about increased expenditure (e.g. higher food prices and electricity), but also the danger for losing your income due to massive layoffs in certain fields, such as tech.
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| Photo by Erik Mclean on Unsplash |
How to Handle the Inflation
There are only really two proper ways to stop worrying about inflation. One is hands-on practical, the other is emotional.
1. Practically
The first way to is to have a solid financial plan. Adhering to these simple rules can get you a long way in times with high interest rate:
- Make a budget and adhere to it
- Pay off your highest interest loans first
- Avoid taking on new loans
- Ask for a pay raise or join a union
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2. Psychologically
Secondly, you need to be willing to disconnect yourself from the topic causing you grievance. In other words, to stop thinking about money you'll need to find other ways to occupy your mind. Listening to music, spending time with friends and family or engaging in physical exercise are excellent ways to give yourself some headspace and increase you're mental health.
Another way is to understand yourself better and learn more about the psychology behind money. Morgan Housel wrote a book on this topic, and Investors Psychology warmly recommend reading it. We wrote a summary on the psychology of money in case you don't have the time to read the whole book.
