Money and Mental Health - The Truth About Tax Anxiety
“Our money and mental health intersect because they’re two parts of our overall wellness.” Says Lindsay Bryan-Podvin, financial therapist and founder Mind Money Balance. The fact that we have professionals with the title ‘financial therapist’ is alone quite telling.
We can experience financial stress at any point throughout the year, but many Americans find themselves in a state of fear and overwhelm during tax season. “If we’re overwhelmed by our anxiety, that’s where it may lead us to avoid thinking about finances or trying to avoid thinking about taxes.,” says psychologist Dr. Tanya Farber.
The deadline for filing may motivate some but for others it can make them feel paralyzed. The first step to preventing this is uncovering the reason for the behavior that causes it; avoidance. Not looking at your finances doesn’t change the state of them. But looking actually can!
That’s why the first recommendation you’ll get from the experts for reducing financial stress, especially during tax season, is DON’T AVOID, PLAN.
No matter where you’re at with your books, you can start getting them in order. That’s step 1. You need accurate information to work with. If the biggest reason for your anxiety is that you avoided your books all year long and now you don’t know if the information is correct when filing, this is completely avoidable going forward. A Pro Tip: Make a date with your books once a week.
The next key step is gathering all of your documents, W-2 or 1099 forms, savings and investment records, eligible deductions, tax credits, as soon as you can. If you have questions about any of those things, like what you can write off, etc., ask your bookkeeper or CPA. If you’re a HarQuin client, use your checklists throughout the year to stay on track and prepared.
Face Your Fears
If you identify that fear is what’s causing you to avoid your numbers or preparing for taxes, Dr. Farbr recommends that you ask yourself if whatever you’re afraid of is likely to happen.
“When we have fears, they’re possible, probable, or definite,” Farber said. “And oftentimes anxiety is the highest when we’re assuming the worst-case scenario.”
An important aspect of facing those fears is letting someone in on the conversations you’ve been having with yourself. Talk it out with someone that you can trust. Sometimes, the greatest fear you face is being judged and that is what leads you to trying to figure it all out on your own instead o9f asking questions and seeking guidance from an expert. Ultimately, talking with others gives you access to more information.
Focus on Self Care
“We are going to be doing things that are difficult and depleting and anxiety-provoking so doing more things that are restorative can help us balance that.” Farber said.
Doing restorative activities can work as a toolbox of coping skills when you’re in the middle of a stressful situation, like filing taxes.
If you were to step back and calculate the number of hours spent feeling anxious over finances and taxes, compared to the amount of hours spent organizing and planning them, we would say the greater of the two would be the most disparaging. If you prepare now, you will worry less.