According to a 2016 report by Northwestern Mutual, 85% of Americans experience financial anxiety. If you’re in this majority, you know how much worry can accompany financial planning and decision-making – and even day-to-day money matters. Thankfully, there are realistic steps you can take to reduce your anxiety and get on a stress-free path!
Here are our independent financial advisors’ best pieces of advice for reducing your financial anxiety:
1) Define Your Situation
Unknowns are a big factor in stress. By taking stock of your financial position – and staying up to date – you can avoid surprises that contribute to anxiety. In addition to knowing where your money and investments currently are, it’s great if you can look for habits and trends. Knowing how you typically approach your finances can help you plan for the future and avoid mistakes you’ve made before. And, as you watch your situation improve, that anxiety can be replaced with self-confidence and optimism!
2) Take Bite-Sized Steps
Having ambitious goals in life is great, but setting unrealistic or overly aggressive financial objectives will only add unnecessary pressure. If you make your goals too small, however, you may not see the financial change you want and lose patience for the good habits you’re trying to set. By finding the right balance between “large enough to make a difference” and “small enough to be achievable,” you’ll end up being able to make progress at a comfortable pace while seeing positive change over time.
3) Talk to an Expert
As you figure out where you are and where you want to be financially, you’re going to have questions. You also may feel overwhelmed. Avoid these stressors by working with an independent financial planner who can ask the right questions, supply needed answers, and give you tips based on years of education and experience. Getting help with financial management and taking advantage of financial planning services is one of the best ways to remove anxiety, as you know you’re in good hands.