Reducing financial anxiety begins with learning to have a higher emotional intelligence (EQ) with your money. The usual advice is that managing money benefits from rationality. There is little room for emotions.
However, I heard a unique thought practice on The Afford Anything Podcast with their guest, Ken Honda. He is the author of Happy Money describing “The Japanese Art of Making Peace with your money.”
During the podcast, Honda shares his thoughts on money EQ, and I have listed my main take-aways about how to overcome financial anxiety below.
How to be Zen with Your Money
1. Receive Money Well
Be grateful for the money that finds its way to you. In a study discussed in the Yale Happiness course, when people receive a promotion with increased pay, people think they should be earning $1.40 more for every dollar of the pay increase. To illustrate, if someone gets a raise of $10,000, they believe the raise should have been $14,000. Constantly wanting a higher salary can lead to dissatisfaction with current wages, no matter how high they go. Being disappointed about wages explains why CEO millionaires can be so unhappy with seven-figure salaries.
In this example, instead of being upset about being “short-changed” $4,000. Be grateful for the extra $10,000.
2. Appreciate Money
Say thank you for all the bills and goods you are paying for. If you are like me, paying bills is one of your most unpleasant monthly routines. It has to be done, but seeing hard-earned money leave every month is awful.
Honda wants us to say, “thank you money. You are letting me pay for these bills. Thank you rental bill, because of you I have a place to live. I am sending you money now” and sincerely do that. Thank the money flowing out of you as much as the money that flows to you. Saying thank you for paying bills feels weird at first.
However, after the first several times, you start to experience more gratitude for the blessings in your life, even if you have to pay for them each month.
3. Trust that the future will be better, and current challenges things will turn out well.
Trusting in the future is speaking to learning how to be more optimistic. Honda’s logic is as follows:
If you believe in the future more -> than you can be riskier in the day of pursuing what you want -> if you know what you want, you can handle the bad things better -> you can slowly work towards your goals and overcoming the current challenges.
He also views setbacks as some of the more exciting times in life. I agree with him that we should be ambitious and spend our time doing what we would like our lives to be. Being optimistic is a great skill to have. Just be sure to have back-up plans (plan A, B, and Z) in case all else fails. Being optimistic is also a great way to lower your financial anxiety in general.
4. Share What You Have
Also, from the Yale Happiness Course, giving money and being altruistic raises your happiness. Sharing what you have provides the notion of having enough money (to counter the need of always thinking we need more), and it allows you to thank money when coming and going.
I also like this practice because you can immediately see the intangibles that money can provide. Giving to a worthy cause or helping someone in need has a real impact on the lives of others. That means more than accruing interest in a bank. Take care of yourself and your future, and you can always have enough to share with others.
Main Take-Aways
- Thank money both on the way in and on the way out. One is much easier than the other. However, by working on thanking money on the way out, it practices gratitude to be thankful for what we do have in our lives.
- Be optimistic about the future. Being optimistic lets you pursue your dreams and work more effectively. While allowing for a quicker bounce back in the face of adversity
- Share what you have. Build the muscle of being altruistic and helping others in the ways we can. If money is not possible at the moment, time can also work. Call a friend in need or volunteering at a local charity is a great way to share your time.
Action Item
What are you thankful for that money affords in your life? How can you cultivate more gratitude with money?
