Money Rehab with Nicole Lapin - If Your Finances Are Keeping You Up at Night, You're Not Alone

Episode Date: April 13, 2022

If you answered “yes” you’re not alone. Today, Nicole shares new research on the ties between finances and anxiety, and how you can find peace while meeting your goals. 

Money rehabbers, you get it. When you're trying to have it all, you end up doing a lot of juggling. You have to balance your work, your friends, and everything in between. So when it comes to your finances, the last thing you need is more juggling. That's where Bank of America steps in. With Bank of America, you can manage your banking, borrowing, and even investing all in one place. Their digital tools bring everything together under one roof, giving you a clear view of your finances whenever you need it. Plus, with Bank of America's wealth of expert guidance available at any time, you can feel confident that your

money is working as hard as you do. So why overcomplicate your money? Keep it simple with Bank of America, your one-stop shop for everything you need today and the goals you're working toward tomorrow. To get started, visit bofa.com slash newprosmedia. That's b-o-f-a dot com slash n-e-w pros p-r-o-s media. bfa.com slash newprosmedia. Hey guys, are you ready for some money rehab? Wall Street has been completely upended by an unlikely player, GameStop. And should I have a 401k? You don't do it? No, I never do it. You think the whole world revolves around you and your money.

Well, it doesn't. Charge for wasting our time. I will take a check. Like an old school check. You recognize her from anchoring on CNN, CNBC, and Bloomberg. The only financial expert you don't need a dictionary to understand. Nicole Lappin. Has this ever happened to you?

You're in bed trying to sleep, but when you close your eyes, all you see are the numbers in your bank account. So you start staring at the ceiling and all of a sudden it's 2 a.m. If this has happened to you, you're not alone because I've had nights like that too. I know what it's like to stay awake doing all sorts of calculations in my head over and over. Like if I do X, Y, Z this month, maybe I'll be able to make rent by the first. Counting sheep is supposed to help you fall asleep,

but counting days until your credit card bill is due does the exact opposite. I know that from experience. But it's bigger than just us. A recent study found that 60% of people say they've woken up in the middle of the night thinking about their finances. And two in three find themselves wide awake due to the feeling that they're not where they should be financially. In the past, it has brought me some peace of mind to know that others also struggle

with financial anxiety. But knowing that I'm not alone hasn't made that fear go away. Tackling anxiety often means a change of mindset, and financial anxiety is no different. When I've gone through difficult financial times, here are five things that I've done to help myself. Number one, I take care of my mind and body. It's a lot easier to combat intruding thoughts when you're taking care of yourself. So after one of those sleepless nights, I would try to make sure that I did something the next day for my health. For me, that might mean going for a walk, meditating, writing in my gratitude journal, going for a run, a slow one that might look like a power walk to

some. Maybe making sure that I was just hydrated and hitting all of the major food groups in my meals. I know it sounds simple, but sometimes it's not easy. Fighting off anxiety is just like fighting off a cold. You do better when you're feeling healthy. Number two, I remind myself that comparison is the thief of joy. It's really easy to look at Instagram and think that someone else has more money than you do and more stuff and by extension, a better and cooler life because they're on a nice beach vacation while you're tied up at the computer. But remember that you can't tell someone else's financial situation by social media, nor should you care. That same study I referenced earlier found that nearly three in

five people distort their actual money situation on social media to appear financially stable. So focus on yourself and try to stop comparing. Once you put down your phone, on yourself and try to stop comparing. Once you put down your phone, you'll almost instantly feel better. Number three, I stop catastrophizing. In therapist speak, catastrophizing is when your anxious thoughts snowball into huge worst case scenarios that fill you with dread. When I was paying off my credit card debt, I would catastrophize all the time. And all the time, I would end up thinking that I'd never pay off my debt and that I'd end up alone and homeless and all the bad things. What has helped me is to realize that we suffer more in imagination than we do in reality.

So if you're feeling stressed, take a second to think rationally about the worst case scenario. I know if you're feeling anxious, you won't want to face the worst case scenario. I know if you're feeling anxious, you won't want to face the worst case scenario head on. But if you're catastrophizing, that's pretty much what you're doing anyway. So take a deep breath and face it. What will happen if your paycheck is short this month? Will your family or friends be there to help? Will you be okay? Can you always find another job? The answer to all of those is yes. Don't let your mind spiral to a point where there's a huge disconnect between your fears and what might realistically happen. Also remember to deal with issues if and when

they come up. There's no use in whipping yourself up over what-if questions. Save the real worrying for when a problem actually arises. And it will. Number four. I take the wheel. Anxiety often comes from feeling out of control or lost. The best way to manage those feelings is to be proactive and take action. First, pinpoint what exactly it is you're worried about. Is it planning for retirement, trying to navigate life insurance? Then do your research. Take a class online or attend virtual lessons on that specific subject. Or gee, I don't know, check out the Money Rehab Archive. Just saying. We've done almost 300 episodes, so chances are I've already covered a topic that you want to hear more about. Once you're armed with knowledge, you'll feel more in control and better equipped

to address your specific anxiety. Number five. Last but not least, I ask for help. And this doesn't have to mean spending more money on a therapist, although therapy has been an amazing tool for me and my PTSD. But you can use the tools already available to you, whether it's technology or other people. Perhaps you ask your partner to hold you accountable by taking an inventory of how much you've spent each week. Or you can use an app to help you budget.

It's okay to ask for help, although few people want to. I read a study recently where 30% of participants said they'd rather watch a scary movie than think about their finances. 27% said they'd rather speak in front of an audience, and 28% of people said they'd rather sit in traffic for two hours. But sometimes anxieties worsen when we feel like we're dealing with them alone. Even just talking to a friend about your anxieties can put your mind at ease. For today's tip you can take straight to the bank, don't try to tackle all of your financial anxieties at once. If you're anxious about a number of things, pick one to address first. I would say choose the stressor that's easiest to manage first. Once you've gotten one anxiety under

control, you'll feel better to move on to others. And remember, not everything has to be dealt with right away. It's okay to take time. Money Rehab is a production of iHeartRadio. I'm your host, Nicole Lappin. Our producers are Morgan Lavoie and Mike Coscarelli. Executive producers are Nikki Etor and Will Pearson. Our mascots are Penny and Mimsy. Huge thanks to OG Money Rehab team Michelle Lanz for her development work, Catherine Law for her production and writing magic, and Brandon Dickert for his editing, engineering, and sound design. And as always, thanks to you for finally investing in yourself so that you can get it together and get it all.