By Gordon Chavez, Financial Reporter
Money affects more than our bank accounts—it can affect our mental health, relationships, and even how we see ourselves.
One common challenge is what some experts call a “scarcity mindset,” happens when we become so focused on not having enough that every financial decision creates stress and anxiety. People may obsess over every penny, avoid necessary expenses, or feel guilty spending money on things that could improve their lives, such as education, health care, or professional development.
My wife and I experienced it when we were first married. As we worked to organize our finances, we found ourselves stressing over nearly every expense. We didn’t always see eye-to-eye on money, and it took years of communication and patience to get on the same page. Looking back, some of our stress wasn’t caused by the actual numbers—it was caused by fear and uncertainty.
My friend and mentor, Karlo Salgado, CEO of Innergy Financial, says, “I’ve been broke, but I’ve never been poor. Being broke is temporary; being poor is a state of mind.” While financial hardships are real, our mindset can influence how we respond to them and whether we see possibilities or obstacles.
According to the American Psychological Association (APA), finances remain one of the leading sources of stress for Americans. Research shows that financial stress can affect sleep, relationships, health, and emotional well-being.
Financial coach Christopher Parks believes the solution begins with creating structure. He explains, “Allowing money to stress you is allowing your finances to control you. Create or find a financial system that works effectively for you, and your financial stress levels should subside.”
If you find yourself feeling anxious about money, focus on what you can control:
- Create a simple spending plan.
- Build an emergency fund over time.
- Have regular conversations about finances with your spouse or partner.
- Remember that progress matters more than perfection.
At the end of the day, money is simply a tool—not a measure of your worth. In many ways, it’s the opposite. The value you create through your character, knowledge, relationships, and service to others can directly impact your financial future.
