When your financial future feels uncertain, it can cause significant money stress in your life. And right now, there is plenty of uncertainty.
From shifting policies and trade tensions, to rising prices and inflation, many people are finding it difficult to manage their finances and plan for the future. However, there are steps you can take to feel more in control of your money, and more capable of navigating volatility.
Prioritize Your Mental Health
If you are feeling particularly panicked or worried these days, it’s important to focus on reducing stress.
Stress can make it difficult to stick to healthy habits and lead to coping mechanisms like impulse spending. Start by cutting down stress where you can, and anchoring yourself in the everyday things that bring you peace. Step away from the news for a bit, call up a friend for a walk, and make time to unwind and do things you enjoy.
Investing in therapy can also be beneficial for your mental health, especially during stressful times. In recent years, getting professional help for your mental well being has become more accessible than ever, and more widely covered by health insurance companies. Just like you book regular check-ups for your body, scheduling check-ins for your mental health should be another part of your wellness plan.
Talk about Your Money Stress with Loved Ones
Talking about money shouldn’t be taboo. In fact, speaking openly about spending habits, goals and financial concerns is a key component of a healthy relationship.
Money issues tend to get worse when they’re buried or ignored, so make it a point to talk to your family or network about your current situation and future money plans. Getting everyone on the same page can be a huge help in reducing money stress
Try to avoid internet forums or investment gurus when you’re seeking out money advice. Specific financial guidance is not one-size-fits-all, so the tips you find online might not be right for your situation.
Gain Clarity on Your Situation
Having a vague sense of your money situation is stressful. It’s common for people to start avoiding their account balances or credit card statements during tough times, but getting clear on the numbers can help you feel more in control.
Schedule monthly check-ins for your portfolio and more frequent check-ins for your bills and accounts to make sure you’re not caught off guard by any shifts. There are plenty of apps that can help you track your accounts and spending, too. You Need a Budget and Monarch Money are a couple that I recommend.
Come Up with a Flexible Action Plan for Your Money Stress
Another benefit of having financial clarity is that it allows you to make a plan. By knowing where you might be overspending or not saving enough, you can come up with a budget or spending plan to change that.
Having a plan can cut down on your stress, and allow you to feel more in control of your finances. Start by focusing on just a few main goals or actions to make consistent progress in your finances.
Keep in mind that life is unpredictable, and it’s okay for your financial plan to adapt to your changing circumstances.
Build Your Emergency Fund
One of the best ways to feel more confident in your financial situation is to have a healthy emergency fund. An emergency fund offers peace of mind and a safety net for any unexpected expense, whether you have to repair your roof, pay medical bills, or take time off work.
The ideal emergency fund would cover three to six months’ worth of expenses. Start where you can, and build up your emergency savings over time.
Work with a Professional for Money Stress
Contrary to popular belief, you don’t have to be wealthy to work with a financial advisor. There are advisors who work with people at all income levels and life stages.
If you’re feeling stuck, it can be helpful to bring in a professional third party to take a fresh look at your situation. Check out LetsMakeaPlan.org for a list of certified financial planners that suit your needs.
Or, if you’ve found that you struggle to meet your financial goals, it might be a good idea to bring in a financial therapist. They can help you get to the root of your money challenges, and help you repair your thoughts and behaviors around money. Look into the Financial Therapy Association to find a therapist that suits your needs.
About Your Richest Life
At Your Richest Life, Katie Brewer, CFP®, believes you too should have access to financial resources and fee-only financial planning. For more information on the services offered, contact Katie today.
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