Over the past year, finances have been a constant concern for me. I've been stressed about the rising cost of living, and wondering if I'll ever be able to afford a house one day. I'm sure many of you, especially my fellow young Canadians, feel the same way.

According to the Deloitte Millennial Survey, about 30% of Millennials and Gen Zs say they do not feel financially secure. And 55%, live paycheck to paycheck.

Managing Financial Anxiety with Heather Duncan: A Fresh Perspective

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That’s why this episode couldn’t have come any sooner. This week, I had the pleasure of speaking with the wonderful Heather Duncan, a certified financial planner, who shared her insights on budgeting, achieving financial goals, and fostering healthy mindsets for growth. She wrote a book called There’s Always Something You Can Do, which offers an uplifting perspective on our potential and shows how we can always take action to set ourselves up for a more comfortable future.

To gain the most insight, I recommend listening to the entire episode, but there are also a few points in this blog posts to remember when dealing with financial anxiety. Let’s dive in!

Live on Spotify, Google Podcast, iHeart Radio, and Apple Podcasts :)

Detaching Emotions from Money

In this episode, Heather brings a refreshing perspective on managing financial anxiety. One of her key points is the importance of detaching emotions from money. Money is not a part of you; it is a tool to help you. Another crucial distinction she makes is between net worth and self-worth:

Net Worth: A measure of financial health, calculated as the difference between total assets and total liabilities.
Self-Worth: Understanding your deeper self, which gives you the security of being on this planet and feeling deserving of love and respect unconditionally.

Subconscious Beliefs About Money

Heather also discusses the subconscious beliefs we have about money, often shaped by our upbringing. How did your parents handle money? Did they criticize people of lower socioeconomic status or feel threatened by those of higher status? These attitudes can influence your financial mindset today. As Heather says, "You learn by osmosis."

Take Control of Your Finances

Many people experience fear when they don't fully understand their financial situation. They ride the highs and lows of money coming in and out. To alleviate this anxiety, Heather recommends creating a money map. Unlike traditional budgeting, which can feel restrictive, a money map provides a more comprehensive view by analyzing annual expenses in various categories, such as gifts, mortgage, groceries, vacations, and more.

After categorizing your expenses, assess your previous year's income, including tax refunds. Finally, determine what funds remain to allocate toward financial goals like a TFSA, high-interest savings account, crypto, or other investments.

More on a TFSA, RRSP & FHSA

In Canada, Tax-Free Savings Accounts (TFSAs), Registered Retirement Savings Plans (RRSPs), and First Home Savings Accounts (FHSAs) are all tax-advantaged accounts designed for specific financial goals. Here are the main differences between them:

TFSA: Best for general savings with tax-free growth and withdrawals for any purpose.
RRSP: Best for retirement savings with tax-deferred growth and tax deductions on contributions.
FHSA: Best for first-time homebuyers with tax-free growth and tax-deductible contributions specifically for purchasing a first home.

The Money Map

Understanding your financial situation can significantly reduce anxiety and help you take control of your future. Heather's practical advice and uplifting presence can guide you in creating a healthier relationship with money.

By embracing these strategies, you can move towards financial stability and peace of mind. Heather's insights remind us that while financial challenges are real, there's always something we can do to manage them better.

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Photo Bianca Venchiarutti, the writer of The Twenties Detox

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