The Mint app has shut down as of Jan. 1, 2024. For alternatives, check out CNBC Select's ranking of the best budgeting apps.
Being stressed about money is a common feeling — about 70% of Americans say that they’re stressed about money, according to CNBC’s Your Money Financial Confidence Survey. And one way that stress can manifest is avoidance.
“There’s a cognitive bias we call the ostrich effect,” says Mary Bell Carlson, president of Financial Behavior Keynote Group. “[Like an] ostrich with its head in the sand, where you just avoid [a situation] at all costs because it's so overwhelming. Money absolutely can create the ostrich effect for many people."
But simply avoiding your money stressors generally won’t make them go away. Here are four steps Carlson recommends to anyone who's ducking their finances right now.
1. Start a conversation about your financial situation or concerns
Whatever is causing you to stress about money — an overdue credit card bill, a mortgage payment or anything else — talking about it with someone you trust is a great first step according to Carlson. “[The problem] begins to be put into perspective, and you start to see the forest for the trees," she says.
While talking about money can be uncomfortable, it could help if you've been avoiding your finances. Whether you decide to talk to a partner or spouse, a trusted friend or family member, or even a therapist or other professional, it could help you feel like you don’t have to go it alone. “You start to have a team to help you approach whatever the problem is,” she says.
2. Take baby steps, even if they feel small
While you might feel like you need to make a drastic change to improve your situation, that’s not always the case.
Carlson suggests starting as small as possible. Whether that’s something as minor as opening a savings account or checking your credit score, taking action can help build momentum and motivate you to continue to stay on top of your finances.
Downloading a budgeting app can be a great way to start organizing your money and make your finances less stressful. Some of CNBC Select’s top picks include Mint for its free and simple-to-use interface and ability to bank accounts and credit cards for payment reminders and alerts. For those prone to overspending, PocketGuard is a top pick because its algorithm-generated feature shows how much you have available to spend based on your goals.
Mint
Cost
Free
Standout features
Shows income, expenses, savings goals, credit score, investments, net worth
Categorizes your expenses
Yes, but users can modify
Links to accounts
Yes, bank and credit cards
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Verisign scanning, multi-factor authentication and Touch ID mobile access
Terms apply.
PocketGuard
Cost
Basic PocketGuard plan is free, while PocketGuard Plus subscription is $12.99 per month or $74.99 annually. Lifetime membership offer available at a reduced rate.
Standout features
In My Pocket feature uses your income, recurring expenses and savings goals to determine how much you have for everyday spending.
Categorizes your expenses
Yes, but users can customize
Links to accounts
Yes, users can connect accounts through Plaid and Finicity to import data automatically or manually add cash accounts for tracking
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
PocketGuard utilizes bank-level encryption, PINs and biometrics like Touch ID and Face ID
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
“It may be a very small step,” Carlson says. “[But] before you know it, you’ve gone a lot further than you ever would have gone had you just ignored it and hoped it didn’t appear.”
3. Put money in perspective and celebrate your wins
Remembering that you aren't powerless to change your financial situation helps you face your fears with confidence. “You have the ability to control [money], it doesn’t control you,” Carlson says.
Whether you need to pay off debt, earn more income, or save for retirement, putting money in perspective can help it feel less daunting. One way to help shift your mindset is by remembering the times you've accomplished your goals — no matter how small they may have been. Putting aside a few dollars in a savings account or paying a bill on time is proof that you have the ability to take control of your finances.
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Bottom line
If you’ve been ignoring your money, it’s best to talk to someone you trust about how you’re feeling. Then, you can start to take small steps that can help improve your situation, and change your outlook on your finances, focusing on the good choices you’ve made.
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