4 Ways I Deal With Financial Anxiety

As a self-proclaimed high-strung, worst-case scenario worrier. Eep

Author

Michela Allocca
March 04, 2025

❄️ Spring is in the air and it is bringing me back to live!! I am so excited for daylight savings this weekend 🌷 

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MONEY
4 Ways I Manage Financial Anxiety

So fun fact about me is that I have a lot of anxiety about everything all the time. And yes I should probably be medicated and reduce my caffeine intake.

Anyways, because I know that financial success really boils down to habits and math, I’ve found things I can do to manage and control my anxiety so it doesn’t get the best of me.

Let’s get into it!

1️⃣  I Start With My Systems

This truly is the foundation of my entire financial strategy and I rely on my systems to help me continue to grow my wealth. Here are the systems that build my foundation:

  • Financial Framework: I have 4 key accounts (checking, HYSA, retirement, and brokerage) and I aim to keep them consolidated and minimal.

  • Zero-Based 3-Bucket Budget: This makes it easier to allocate my spending and plan for my financial goals each month.

  • Weekly Routines: I am always sticking to my weekly money routine where I track my expenses and make adjustments to my budget.

2️⃣ I Play Financial Offense

I mentioned this in last weeks newsletter, but I am always seeking new ways to earn or scale my income.

At the end of the day, there is only so much you can cut from your budget. The fastest way to financial success is to make more money and I’ve seen that happen in my life over the last few years.

I’ve reduced my expenses as far as they can go, and I aim to keep my lifestyle minimal (within reason). Beyond that, I am looking for ways to EXPAND my earning power.

3️⃣ I Don’t Take Unsolicited Advice

I create enough stress and anxiety on my own. I don’t need other people to add to it by psychoanalyzing my situation and providing advice I didn’t ask for based on their perceptions or opinions of me.

While I know this is often well-intentioned, it rarely lands. I especially tune out advice from people who are not in situations I would want to be in, and male podcasters (take the mic away!!)

I think advice is best suited when solicited. I try to be cognizant of this in my day-to-day life, too. Most often when someone is stressed or anxious, they don’t want advice - they want empathy and validation.

4️⃣ I Scenario Plan

I am always running my numbers, and I do this using the Personal Finance Dashboard. I love using the Annual Spending Plan tab to map out different income and spending scenarios, and how different changes can impact my financial outcomes for the year.

I have also started to explore financial independence scenarios, and what is required of me to become work-optional and how that can help drive my professional life and earning power (more to come on this topic).

Truly knowing your numbers and how they can change makes the biggest difference for me in feeling CONFIDENT about my financial decision-making.

WEEKLY RECOMMENDATION
Work Optional the Non-Penny Pinching Way

I recently purchased this book, Work Optional: Retire Early the Non-Penny-Pinching Way, and I’ve been loving it. Obviously I have FI/RE on the brain, and this is the only book I’ve found on the topic that isn’t focused on extreme frugality. While I am in the process of working on some of my own resources, I highly recommend checking this book out!!

RESOURCES
What’s Happening This Week at Break Your Budget

  • This week on Don’t Depend on Daddy: I sat down with Paige Pritchard of Overcoming Overspending and we covered ALL THE BASES related to spending, overspending, and self-sabotage. This was one of my favorite episodes yet, and yours too!

  • Weekly Money Routine: Curious about financial routines and how I manage my budget? I recorded and in-depth video taking you through my weekly money routine! And I also shared my current budget (which I know some of you are curious lol)

LOOKING FOR MORE?
Check out ALL of my Money & Career Resources!

xoxo,

Michela