‘It’s like I’m going crazy if I spend any of it.’: I used to have terrible spending habits, now I’m struggling to spend any money. How can I overcome this fear of spending?

Hi Money Minder,

I used to be a real mess with money – maxed out credit cards, only $100 in my checking account before payday. But now I’ve turned things around! My credit card gets paid off in full every payday, my credit score is in the 700s, and I’ve got over $3k in my account. It’s crazy, I’ve never had this much money before! I want to keep saving, but I feel like I’m losing my mind. Not because I want to spend it all, but because I’m scared to touch it. I find myself checking my balance multiple times a day for no reason. Is there a term for this?

Thanks for your help,

Savvy Saver

Response from THE MONEY MINDER:

Hello There,

Congratulations on turning your financial situation around and being proactive about paying off your credit card debt and building up your savings! It’s great to hear that you have improved your spending habits and are now in a much better place financially.

It’s completely understandable to feel a bit anxious or even guilty about spending money after going through a period of financial struggle. Some people refer to this feeling as “money anxiety” or “financial anxiety.” It’s a common experience for individuals who have had financial difficulties in the past and are now in a more stable position.

One practical approach to managing this feeling is to create a budget and financial plan that aligns with your goals. By having a clear understanding of your expenses, savings goals, and discretionary spending, you can give yourself permission to spend money on things that are important to you without feeling guilty.

It’s also helpful to set aside a specific amount of money for discretionary spending each month. This can be your “fun money” that you allow yourself to spend on things you enjoy without feeling guilty. By having a designated amount set aside, you can enjoy spending money on yourself while still meeting your savings goals.

Checking your account balance multiple times a day could be a habit that developed during your previous financial struggles. Instead of checking your balance out of anxiety, try to set specific times during the day to review your accounts. This may help reduce the urge to constantly check and alleviate some of the stress associated with spending money.

Remember, financial management is about finding a balance between saving for the future and enjoying your hard-earned money. You have already made significant progress, and it’s essential to celebrate your achievements. Keep up the good work, and all the best from THE MONEY MINDER!