Top tips for managing financial anxiety 

Understanding the specific factors or issues contributing to your financial anxiety is crucial. Common causes of financial stress in the UK include high levels of consumer debt, concerns about job security, housing costs, and retirement planning. By identifying the sources of your anxiety, you can tailor your strategies and seek appropriate solutions.

When you don’t have a good handle on what’s coming in or going out, costs can creep up on you and you may find you run out of money or worry about paying your bills. 77% of lawyers tell us they either simply don’t budget at all or struggle to stick to one and 1 in 5 admitted to using credit to pay for everyday essentials. 

Budgeting can feel restrictive to some, like going on a diet where they are told to cut things out. We like to think of budgeting as your chance to create an intentional spending plan that gives you the control you need to make informed money choices. Use your budget to create financial goals and to help make decisions about how and where you spend the money you earn. To get started download Wealthbrite's free budgeting tool here.

Creating a safety net or buffer for bumpy or unexpected costs can take a weight off your shoulders financially. Whether it’s paying down a deposit on a new flat for rent or the annual car insurance costs, we all have one-off payments that come around and if they haven’t been planned for can cause short term financial difficulties and may end up costing even more than you planned if you have to use expensive sources of credit.

Although 70% of lawyers told us they were saving on a monthly basis, only 42% of trainee lawyers we surveyed said they would be able to cover an unexpected cost of £850 without relying on borrowing or credit. The uncertainty of not being able to make ends meet or dealing with unexpected costs can be a huge source of anxiety. Use your budget to work out how much you need for annual one-off amounts and what your regular monthly outgoings are. While 3 - 6 months' living expenses is the recommended amount for an emergency fund, we recommend building up savings without dipping into them to grow your confidence and build up your rainy day fund from there.

Debt is a significant contributor to financial stress in the UK. Statistically, UK law graduates leave with £43,000 of debt and for those that also self-fund the LPC or SQE, levels of student debt going into the profession can be much higher. Once in the profession, some may be tempted to use credit in efforts to keep up with appearances - 48% of lawyers told us that they feel pressure to spend beyond their means. If you are struggling with debt, explore options to manage and reduce it effectively. Consider contacting organisations like StepChange or Citizens Advice Bureau for free debt advice and support. They can help you create a debt management plan and negotiate with creditors on your behalf. 

If you are struggling with the impact of interest rate rises on your mortgage repayments, Government relief may be available to you. Find out more about support for mortgage interest (SMI) here.

If you find it challenging to navigate your financial situation alone, seek advice from someone who can help. You don’t necessarily have to disclose financial details but just sharing your concerns with someone else can help you feel less alone and supported.

A financial coach can act as an accountability partner working with you to shape your thinking and actions around money. Coaching is a great way to learn more about your money mindset and discover opportunities for you to reach your financial goals. Find out more about Wealthbrite coaching here.

If you are a solicitor that is in financial crisis you may be able to access support from the Solicitors’ Charity who have a mandate to provide financial, emotional and practical support to help people get back on track. You can also contact the NHS for specialist support if your financial situation is affecting your mental health. 

Remember, everyone's financial situation is unique, so it's important to find strategies that work best for you.