Financial Fitness

Take Steps to Cope With Financial Stress

Money worries can contribute to feelings of stress, especially amid today's economic upheaval. Here are some ways to help control anxiety about money.

by Alice Lesch Kelly - May 18, 2020

Feeling stressed about finances is nothing new. Today, millions of Americans are facing financial strain, whether it’s from job loss, unexpected medical bills, or seeing retirement savings diminish. And it can be the fear of the unknown in particular that can lead to worry.

Although feelings of anxiety can be hard to overcome, taking these steps may help to reduce financial stress.

Get a clear picture of your finances

The best way to soothe financial fears could be to better educate yourself about your financial situation. Start with a clear understanding of where you stand financially. Create a budget worksheet to organize your information to get a full picture of your current situation.

Seek advice from financial advisors

A financial advisor could help you set—and stick to a plan for achieving—short- and long-term financial goals.  When you understand your finances, have realistic expectations, set reasonable goals, and feel confident in your decision-making skills, you’re less likely to feel stressed.

Once you have a solid savings and investment plan in place, be sure to review it with your financial advisor on a regular basis—once or twice a year, or whenever you experience a change in income, switch jobs, receive an inheritance, or undergo any other type of large financial shift.

Take good care of yourself

When stress becomes overwhelming or when it continues for a long period of time, it can take a toll on your health. Try to recognize the things that cause you stress and consciously change the way you react to them.  Focus on the things you can control and take action where you can to make the changes that can help to reduce or eliminate stressful situations.

Alice Lesch Kelly is a freelance writer based in the Boston area.

Image by iStock

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