How millennials can stop anxiety from ruling their finances

Financial decisions are rarely easy, whether it is buying your first car or home or deciding whether to refinance student loans.

The anxiety can be heightened for millennials who witnessed economic turmoil during the Great Recession as they weigh milestone financial choices as adults.

"Many [millennials] grew up and saw their parents lose a house or have to delay retirement," said Brad Klontz, a financial psychologist and associate professor at Creighton University. "Of course, they are going to be anxious."

In fact, a survey this year by insurance company Northwestern Mutual found that this generation not only has a stronger inclination to make financial plans compared with older generations, but also has a higher level of anxiety about whether they are following the right strategy.

The survey found that 66% of millennials (those born from 1981 to 1996) said they were "highly disciplined" or "disciplined" financial planners, compared with 60% of Generation X (born 1965 to 1980) and 52% of baby boomers (born 1946 to 1964).

At the same time, 70% of millennials said their financial planning needs improvement. That's compared with 68% of Gen Xers and 52% of baby boomers.

There are ways to reduce the stress of financial decisions.

Most of us grow up with a specific approach toward money, often learned from our parents, absorbed from those around us or informed by our own experiences.

Being aware of your relationship with money can help you avoid pitfalls like worrying too much.

Klontz, the author of several books on finances and psychology, said he's found four common approaches to money: worship, avoidance, vigilance and status.

For example, those who are vigilant about money always worry about having enough and experience trouble making spending decisions. On the other hand, avoiders don't look at bills or statements until they absolutely have to, Klontz said.

"Your 'tendency' shapes your perspective on the world and influences what kinds of [financial] strategies will work for you," said Gretchen Rubin, author of "The Four Tendencies." For example, a "questioner" likes doing their own research and will only seek outside counsel they trust, she said.

• Make a to-do list

People who don't know where to begin can start by making a financial to-do list, said Eric Tyson, author of "Personal Finance for Dummies" and a former financial adviser.

You could calculate how much money you earn and spend every month or add tasks like saving money for a goal or getting your credit in shape for a loan.

"Prioritize it, get some early victories," he said. "Don't beat yourself up thinking you've got to do it quickly."

• Stay accountable.

• Visualize the end goal.

If you are a "rebel" who doesn't like being told what to do and wants to pay off debt, think of the freedom you will have when you are debt-free.

Set up automatic payments so you don't have to think about them, Rubin said.

The automatic payments option is effective for anyone, she noted.

Tyson said the biggest mistake that he has seen people make is that they don't get advice — or rely on one source — before making a financial decision.

If you want an expert's perspective, turn to a fiduciary fee-only financial adviser.

Advisers who are paid by fees only, not commissions, have fewer conflicts of interest; those who follow the fiduciary standard put clients' interests ahead of their own.

Or you can set up a free consultation with a nonprofit credit counselor.