Banxiety: Top tips to tackling and understanding it
Banxiety is a new term coined to describe the anxiety that Brits face when checking their bank accounts.
Banxiety might not be a real word that you will find in the dictionary, but feeling anxious when thinking about your bank balance is becoming more common than you’d think.
In fact, the fear of checking a bank balance has meant that some people have avoided checking it altogether, while others are incessantly checking it out of fear.
Money on your mental health
Worrying about money can be really hard on your mental health, and poor mental health can make managing your money harder, resulting in a vicious cycle.
The past year has seen millions being placed on furlough due to the 3 lockdowns that took place throughout 2020 and 2021. Some businesses, such as the Arcadia Group and Debenhams, collapsed altogether resulting in unemployment worries.
Although Coronavirus restrictions have now ended across the UK, there are new concerns regarding the Energy Crisis that has seen smaller energy companies collapse and the threat of increasing energy bills. In addition, supermarket shelves have been empty and there are concerns with the rising food bills overall resulting in increased outgoings for all.
According to Raisin UK research, over 18 million people admitted money stress keeps them up at night (35% of adults), whilst additionally over 14 million people admitted to thinking about money consistently throughout the day (28% of adults), This research shows that for some adults money is never off their mind!
With money negatively impacting 34% of people’s mental well-being, it’s important to rethink money and build a positive atmosphere around banking and saving.
Tackling banxiety once and for all
Kevin Mountford, savings expert and CEO of Raisin UK, gave these tips to Brits wanting to overcome the anxiety around money.
“From the research, it’s clear to see that without a plan to help you manage your financial future; money dreams can quickly turn to money nightmares.
“Whilst money can be seen as a tool for happiness, it also comes with a lot of stress. It’s super important to set realistic and achievable financial goals, and don’t be too hard on yourself if you occasionally stray off track.
“In the same way, treating yourself or dipping into savings sometimes is okay, and not something to feel guilty or ashamed of.
“Whilst it’s important to treat yourself, it’s also important to recognise when you may be treating yourself too much. Discipline is a key part of tackling this banxiety, allowing you to feel in control of your money and the future of your savings.
“Many banks allow you to set up savings goals or sometimes saving accounts/pots. You may want to set up an auto-payment of a set amount to enter your savings as soon as you are paid. Then, whatever you have left in your current account, you can spend. Alternatively, you could start a roundup system where you round up your transactions and put that money into your savings.
“You can also start some good saving practices, such as reviewing your expenses. Make sensible swaps with your shopping and try cheaper supermarkets. Also cancel any unnecessary subscriptions, such as the TV streaming service you don’t use or the grocery subscription service that you think is overpriced.
“Easy Access accounts are the most flexible type of savings account available. Savers can top up, and withdraw money at their convenience, meaning you can save extra or dip into your savings if you need to. You can also keep your account open for as long as you want, making these accounts the ideal solution for both short term and long term savers.
“You are in control of your finances, and with discipline and being open and talking to others, you can relieve yourself of some of that worry. Talk to family, friends, services such as Mental Health & Money Advice, your local Mind charity, or even try talking to your bank.”