It’s that time when many of us are considering resolutions for the coming New Year. Along with fitness goals, we often think about our finances and may wonder how we can reduce money stress. Certified Financial Planner Suzanne Himes, discusses strategies for easing our financial anxiety.
SUZANNE, PERSONAL FINANCES TEND TO BE A HIGHLY EMOTIONAL TOPIC FOR MANY. WHY IS THIS SO COMMON?
Spending money triggers a reaction in our brains
• Can be actual spending or anticipated spending
• Spending “hangover” can lead to anxiety; aka “buyer’s remorse”
• Money anxiety can happen whether or not resources are tight; can impact relationships and even our health
WHAT ARE SOME WAYS THAT WE CAN REDUCE OUR MONEY ANXIETIES?
First, try to determine the source of money concerns
• Stress often comes from a feeling of uncertainty or not understanding
• Knowledge is power
Then, take specific action if possible
WHAT ARE SOME EXAMPLES OF THINGS WE CAN DO?
• Review household cash flow to understand spending habits
• Update budgets if they’re unrealistic
• Get answers to account questions sooner rather than later
• Automate savings to keep goals on track
• Keep lines of communication open with family and professional advisors
Finally, resist comparison to others, especially on social media.
FAST MARKET FACT: TOP 5 FINANCIAL TERMS SEARCHED IN 2019
- Negative Interest Rate
- Dark Web
- FIRE (Financially Independent, Retire Early)
- Conventional Mortgage
- Negative Bond Yield
Want to learn more about easing financial anxiety? Do you have other general questions about financial planning or investing? Send your questions to our Knoxville Certified financial planners or directly to firstname.lastname@example.org!