How to Replace Financial Anxiety with Confidence
Researchers at the Global Financial Literacy Excellence Center at George Washington University and the FINRA Investor Education Foundation found that 60% of study participants feel anxious when thinking about their finances and 50% say they're stressed about them.1 Major financial triggers cited by participants include:
Recent economic challenges, including inflation, rising interest rates and ongoing market volatility, have added to the stress many people are experiencing. However, there are practical ways to help cope with and overcome these obstacles. That begins with understanding the causes and symptoms of financial anxiety.
What is financial anxiety?
There’s no question that worrying about having enough money to make ends meet each month, pay for an unanticipated expense, or save for retirement can lead to tension and anxiety. Market and economic conditions can also play a role, especially if you’re concerned about fluctuations in the value of your investment portfolio during periods of increased market volatility, or whether you’ll outlive your income in retirement. Financial stress can manifest in different ways, such as obsessive saving or spending behaviors, addiction to work or emotional decision-making. These unhealthy behaviors compound stress, which can impact your physical and mental well-being, resulting in conditions such as insomnia, fatigue, muscle aches, depression and more. While it’s common to experience some level of financial anxiety during your lifetime, especially when faced with circumstances beyond your control, chronic financial stress is harmful and can adversely impact your health, relationships and even your job performance.
What can you do about it?
Have you ever thought, “If only I had a little extra money each month, all of my worries would go away”? While more money seems like the simple answer for resolving financial stress, it’s often insufficient because it doesn’t deal with the underlying cause of your anxiety. For example, if you grew up in an environment where money was scarce or your family experienced a significant loss in income or assets that impacted your lifestyle, you may harbor fears about never having enough. As a result, no matter how much you make, you’ll never feel confident about your financial circumstances until you deal with that underlying fear.
4 Steps for replacing anxiety with confidence
No matter the source of your financial anxiety, there are steps you can take now to not only help you cope with, but overcome, any challenges you face. To put yourself on a fast track toward conquering the financial stressors in your life, consider the following steps:
To learn more about preparing for a confident financial future, call the office to schedule time to talk.
This information was written by KRW Creative Concepts, a non-affiliate of the Broker/Dealer.
Please note that neither Cetera nor any of its agents or representatives give legal or tax advice. For complete details, consult with your tax advisor or attorney.
Some IRA's have contribution limitations and tax consequences for early withdrawals. For complete details, consult your tax advisor or attorney.
Distributions from traditional IRA's and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½, may be subject to an additional 10% IRS tax penalty.
Financial Watch | June 2022
June 21, 2022|