Worried about money all the time?

Why money worry doesn't switch off

Most worries stay in one part of life. Money follows you everywhere. The card reader at the till is a reminder, and so is the energy bill on the doormat, so the worry never gets a chance to settle.

It also feeds on not knowing. When prices keep moving and you can't tell what next month looks like, your mind runs the sums again and again, usually at night and without a pen. Sums done in your head at 2am tend to come out worse than the same sums on paper.

Money worry also takes up thinking room. Anandi Mani and colleagues showed this in a 2013 study in Science. They asked shoppers at a New Jersey mall to think through how they'd pay for an expensive car repair, then gave them reasoning puzzles. People on lower incomes did worse on the puzzles when the repair was expensive than when it was cheap. For people on higher incomes the price made no difference. Sugarcane farmers in India did better on the same kind of tests after the harvest, when the money had come in, than before it. So if you're more forgetful in a tight month, the worry is likely part of the reason.

It happens on good salaries too, when most of the money is spoken for before it arrives.

Why not looking makes it worse

When money feels frightening, it's tempting to stop opening the banking app and leave the letters on the side unopened. Economists call it the ostrich effect: looking at account data from Scandinavia and the US in 2009, Niklas Karlsson and colleagues found that investors logged in less often when the market was falling. Not looking brings a day of relief. Then the unopened letters become a worry of their own, and the number you imagine is often worse than the real one.

Looking doesn't have to be a big sitting. Open the app and read the balance, nothing more. After a week of that, you know the number, and you can start planning around it.

Look at the numbers once a week

Pick one evening a week and give it half an hour, with a pen. Write down what comes in and what has to go out. The difference is what you live on.

Then choose one small action for the week, the one that would take the most weight off, such as calling about a bill or moving a payment date to just after payday.

Outside that evening, give the worry somewhere to go. When it turns up at work, add it to the list for the next money evening and let it wait. A worry is easier to leave alone when you know when it'll get its turn.

If you share money with someone, do the evening together, or at least share the list, so one person isn't carrying the whole picture.

If there are bills you can't pay

Get in touch with the company before you miss a payment, or as soon as you can after, and ask whether a payment plan is possible.

Free, independent debt advice exists, and it's worth using early. In the UK, MoneyHelper, which is backed by the government, can point you to a free adviser, and Citizens Advice helps with debt by phone and online. Elsewhere, ask your local council or a consumer advice centre what free debt advice there is.

Be careful with firms that charge to manage your debts. Free advice is available, so check there first.

When it's more than money worry

Money worry is common when prices are rising, and it often eases once the numbers are in front of you and the next step is clear. Talk to your GP or another qualified professional if it's there most days for weeks, or if it's stopping you sleeping. If you're having thoughts of hurting yourself, or you're in danger now, call your local emergency number.

Sources

• Mani, A., Mullainathan, S., Shafir, E. and Zhao, J. (2013). Poverty impedes cognitive function. Science, 341(6149), 976-980.
• Karlsson, N., Loewenstein, G. and Seppi, D. (2009). The ostrich effect: selective attention to information. Journal of Risk and Uncertainty, 38(2), 95-115.
• MoneyHelper (government-backed money and debt guidance, UK)
• Citizens Advice (free debt advice, UK)
• Caritas: Schuldnerberatung (kostenlos)
• European e-Justice: brezplačna pravna pomoč v Sloveniji