6 Ways a Money Journal Can Help Ease Financial Anxiety
Written by: Mia Barnes
Coping with financial worries can be a heavy burden. Discover the powerful benefits of using a money journal and how to start as a beginner.
What’s a Money Journal?
A money journal is like a traditional diary but geared toward your financial concerns and goals. It’s a tool that allows you to be vulnerable. Jot down your worries or money-related fears that you may have. On the other hand, you can use it to dream big — set financial goals, whether it’s saving for a new home or a vacation.
6 Ways a Money Journal Can Help
Financial anxiety can creep up in the worst moments. Here’s how journaling can help ease your money-related concerns.
Decrease Money-Related Worries
One of the most powerful benefits of money journaling is it allows you to sit with your feelings. Treat it as a trusted friend with whom you can share your uncertainties and doubts. Doing so can help release pent-up stress and anxiety.
Jotting down your thoughts can help you gain clarity and confidence in tackling your financial goals. According to one study, 35% of participants felt relieved after journaling. Try it and feel the weight somehow lighten off your shoulders.
Increased Awareness of Spending Habits
Journaling encourages you to log your spending activities, no matter how small. As you record your expenses, you better understand where your money goes and how it affects your financial health. When you have a clearer picture, you control your life better.
Simplifies Budgeting
A budget helps you live within or below your means, achieve goals, and avoid debt. It might sound intimidating at first, especially if you’re the type of person who sees tracking as a chore. You can use these categories to simplify your budget:
Bills
Needs
Savings
Debt
Wants
If you’re tech-savvy, use a budgeting app and write a summary of your budgeting realizations in your journal.
Helps You Set and Stick to Your Goals
Putting your goals into writing can help transform your thoughts into targets. Whether saving for a vacation or paying off debt, making your plans visible can help you stay motivated.
However, it’s important not to overwhelm yourself with the process. For instance, if you want to own a home, you can start by saving up to 20% of your desired place’s value for the down payment before considering other costs like furniture and renovations. Don’t forget to give yourself grace in the process.
Reduces Impulse Spending
How often have you checked your balance and not remembered where your money went? Impulse buying is a common circumstance. In 2023, one American consumer spends an average of $150 on impulse purchases monthly. Writing down your daily purchases can help you identify your triggers, such as targeted advertisements or feelings of sadness.
Encourages You to Celebrate Wins
A money diary lets you track your journey and realize how far you’ve progressed. People often overlook their wins, but with a journal, you’ll appreciate your growth better than before.
How to Start Money Journaling
You only need a pen and paper or your digital notes to start. Here are some pointers for beginners.
Pick a Prompt
Answer these questions to get your ideas flowing:
How do your parents deal with money?
How do your peers interact with money?
What do you love learning about finances?
What are your money struggles that need urgent attention?
Visualize Your Goals
You’ve probably heard positive things about vision boards and how they help manifest your dreams. The same goes for your money goals — set a financial target by writing or drawing it in your journal. Visit that page every day to reflect on your progress or if you need to make adjustments.
Track Your Spending
Reflect on your spending activities today. Did you buy an expensive coffee? How much did it cost you, and how did it make you feel? These questions can help you better understand your spending habits.
Take Control of Your Finances
Your money journal is your sidekick in your financial journey. Treat it as an accountability tool for sharing your worries and celebrating your wins. Incorporate it into your daily routine and watch yourself become more financially secure.