How to Reduce Financial Anxiety

How to Reduce Financial Anxiety

How to Reduce Financial Anxiety

Share
No

Unfortunately, there’s been no shortage of bad news lately – from COVID-19, to unemployment numbers, to businesses closing their doors. We’re living in unprecedented times, where many of us are stuck in our homes, and possibly fearful of the outside world and all that comes along with it. That certainly seems like an environment that would naturally breed anxiety, especially when it comes to finances. Whether you’re an investor that saw your portfolio take a big hit, or you’re working on building up your nest egg, there are realistic things you can do (in good times and in bad!) to best prepare yourself to withstand hard times.

1.    Plan/Budget: The dreaded “B” word. However, we’re not talking listing out every dollar you’ll ever spend and where it will go. That’s not realistic or a good use of anyone’s time. A good first step towards getting a better handle on your finances is building a budget. As we talked about in the webinar, a lot of the time the hardest part is just getting started. Start with listing out your expenses. Sometimes seeing the numbers on the page can help you realize where you can make cuts. Once that is done, a good rule of thumb is known as the rule of 50/20/30. It states that 50% of your paycheck should go towards non-discretionary expenses, 20% should go towards savings (pay yourself first!), and the remaining 30% can be used for discretionary (fun!) spending.

2.    Debt: If you find yourself in debt, the best thing to do is to come up with a payment plan to try to limit late fees and penalties. Considering everything currently going on, it makes sense to reach out to your lender if you’re having trouble making payments. There may be options available to assist you. If you find yourself having a difficult time juggling different payments and interest rates, debt consolidation could make sense. If you decide to go that route, you’ll want to engage a non-profit debt consolidator. A quick google search should do the trick.

3.    Professional Help: There’s a reason that there is an entire industry dedicated to helping people with their finances – it’s not easy! If you want to enlist the help of a professional (on an ongoing or hourly basis), The National Association of Personal Financial Advisors has a search tool on their website which can help you find an advisor in your area. Any firm registered with NAPFA will have a fiduciary duty to you, which means they have taken an oath to put your needs and best interests before anything else.

Even though we’re surrounded by negative news, there are still positive steps you can take to improve your finances and reduce anxiety that comes along with it. If you missed our full webinar on Experiencing Financial Stress Due to COVID-19? Learn Stress-Relieving Tips from Anxiety and Financial Experts, you can find it here.

Use of Website Blog Commenting

Use of Website Blog Commenting

ADAA provides this Website blogs for the benefit of its members and the public. The content, view and opinions published in Blogs written by our personnel or contributors – or from links or posts on the Website from other sources - belong solely to their respective authors and do not necessarily reflect the views of ADAA, its members, management or employees. Any comments or opinions expressed are those of their respective contributors only. Please remember that the open and real-time nature of the comments posted to these venues makes it is impossible for ADAA to confirm the validity of any content posted, and though we reserve the right to review and edit or delete any such comment, we do not guarantee that we will monitor or review it. As such, we are not responsible for any messages posted or the consequences of following any advice offered within such posts. If you find any posts in these posts/comments to be offensive, inaccurate or objectionable, please contact us via email at [email protected] and reference the relevant content. If we determine that removal of a post or posts is necessary, we will make reasonable efforts to do so in a timely manner.

ADAA expressly disclaims responsibility for and liabilities resulting from, any information or communications from and between users of ADAA’s blog post commenting features. Users acknowledge and agree that they may be individually liable for anything they communicate using ADAA’s blogs, including but not limited to defamatory, discriminatory, false or unauthorized information. Users are cautioned that they are responsible for complying with the requirements of applicable copyright and trademark laws and regulations. By submitting a response, comment or content, you agree that such submission is non-confidential for all purposes. Any submission to this Website will be deemed and remain the property of ADAA.

The ADAA blogs are forums for individuals to share their opinions, experiences and thoughts related to mental illness. ADAA wants to ensure the integrity of this service and therefore, use of this service is limited to participants who agree to adhere to the following guidelines:

1. Refrain from transmitting any message, information, data, or text that is unlawful, threatening, abusive, harassing, defamatory, vulgar, obscene, that may be invasive of another 's privacy, hateful, or bashing communications - especially those aimed at gender, race, color, sexual orientation, national origin, religious views or disability.

Please note that there is a review process whereby all comments posted to blog posts and webinars are reviewed by ADAA staff to determine appropriateness before comments are posted. ADAA reserves the right to remove or edit a post containing offensive material as defined by ADAA.

ADAA reserves the right to remove or edit posts that contain explicit, obscene, offensive, or vulgar language. Similarly, posts that contain any graphic files will be removed immediately upon notice.

2. Refrain from posting or transmitting any unsolicited, promotional materials, "junk mail," "spam," "chain mail," "pyramid schemes" or any other form of solicitation. ADAA reserves the right to delete these posts immediately upon notice.

3. ADAA invites and encourages a healthy exchange of opinions. If you disagree with a participant 's post or opinion and wish to challenge it, do so with respect. The real objective of the ADAA blog post commenting function is to promote discussion and understanding, not to convince others that your opinion is "right." Name calling, insults, and personal attacks are not appropriate and will not be tolerated. ADAA will remove these posts immediately upon notice.

4. ADAA promotes privacy and encourages participants to keep personal information such as address and telephone number from being posted. Similarly, do not ask for personal information from other participants. Any comments that ask for telephone, address, e-mail, surveys and research studies will not be approved for posting.

5. Participants should be aware that the opinions, beliefs and statements on blog posts do not necessarily represent the opinions and beliefs of ADAA. Participants also agree that ADAA is not to be held liable for any loss or injury caused, in whole or in part, by sponsorship of blog post commenting. Participants also agree that ADAA reserves the right to report any suspicions of harm to self or others as evidenced by participant posts.

RESOURCES AND NEWS
Evidence-based Tips & Strategies from our Member Experts
RELATED ARTICLES
Block reference
Other New Content
Block reference
Blog

Parenting is an increasingly complex job. It’s layered with important responsibilities one of…

Webinar
Are you experiencing COVID-19 re-entry anxiety as restrictions are lifting? You’re not alone. This…
Article
ADAA is very fortunate to receive many stories and to be the beneficiary of many school projects…
PERSONAL STORY

One night I realized one of my truest fears was the idea of being quietly alone with my own…

Advertisement