It can keep you up at night. That nagging worry about inflation or the future, even when you know you've checked the boxes on your financial roadmap. It is completely normal to feel this way, and your feelings are valid regardless of your bank balance. We're here to help you understand why this happens and how to find your calm.
Acknowledge your feelings
Even when you have a dynamic financial roadmap or are working with a planner, thinking about your finances can still make you anxious. You are certainly not alone if you lie in bed worrying about inflation or Social Security.
Our mental health is closely tied to how we feel about our finances. A recent survey by the American Psychological Association showed that fear of inflation is the leading cause of stress in America.
In another survey, 90% said that money is a cause of stress, and less than 25% of adults feel confident about their financial health. Almost as many, 73%, said money is the leading cause of stress.
Don't "should" on yourself
All too often, we tell ourselves what we "should" feel. You might think you should feel secure because you have savings, or that you should feel good because you contribute to a 401(k). In reality, we feel what we feel. There is nothing wrong with that.
When we judge our own emotions, we invalidate them. Instead of denying your money concerns, try these steps:
- Write in your journal.
- Express your nervousness to a partner, friend, or financial planner.
- List the top 3-5 things keeping you from overcoming stress.
The "right now" technique
Once you acknowledge your feelings, remember they are temporary. Tweak how you express your feelings by adding two magic words: "right now."
Tell yourself, "I'm anxious about what inflation will do to my savings right now." This minor adjustment helps you recognize that your feelings will change and that you have the power to change your circumstances.
Identify what’s causing your financial stress
Financial stress comes from somewhere, and it often stems from lessons we learned in the past. Many of our attitudes about money were formed by age seven. If you grew up in a household where money was tight, you likely carry those experiences into adulthood.
For some people, anxiety isn't even about money per se. It can be about a lack of control or uncertainty about the future. Understanding the root cause is an excellent first step toward managing it.
Don’t compare yourself to others
Comparing our financial situation to our perception of others is a major stressor. Because money is a subject most people aren't comfortable discussing, we judge others by what we see. We look at their homes, cars, and vacations.
However, we have no idea what their reality is. They may have lots of debt or none at all. They may have a seven-figure 401(k) or little retirement savings. Wondering why your neighbors don't appear to worry is pointless because their financial anxiety has nothing to do with you.
Remember that your priorities may differ. While they may dream of a fancy car, your dream might be feeling financially secure or helping your children graduate college without debt.
Take action
If stress is affecting your life or decision-making, taking bite-sized steps can help. Here are four great options:
- Pursue stress-reducing strategies: Exercise, yoga, meditation, hiking, or even just a walk can significantly benefit your mental and physical health.
- Talk to a therapist: A licensed professional can help uncover the root of your concerns.
- Pinpoint the root of your anxiety: Identify if it is debt, inflation, the stock market, or another topic so you can prioritize your efforts.
- Find the right financial planner: The CFP® Professional designation now requires in-depth knowledge about the psychology of money.
The Facet difference
At Facet, we believe financial planning, when done right, is essential to living well. We are a national SEC-registered investment advisor (RIA) that provides personalized, fiduciary financial advice through a membership-based model. We don't just look at the numbers. We look at your life.
All Facet financial planners are CFP® professionals. Many of our conversations with members are much more about feelings and attitudes than investments or debt. A good planner won't judge or criticize. We want you to feel financially secure as much as you do, and we're here to help you sleep better at night.
