We want to first start by saying that you are not alone if you stress about your finances. According to the American Psychological Association's latest Stress in American survey, 72% of Americans have recently reported feeling stressed about money. There can be many factors that could be causing this stress around money. Everyone has their own stress, but there are some things you could do to help lower your stress around your finances.
Everyone has things that matter to them, but there is only so much that you can control in life. It is crucial to combine the things that matter the most to you and what you can control so that you only focus on those things. When you do that, hopefully, you experience less financial stress.
6 Things You Should Prioritize To Help WithStress Around Your Finances
1. Determine what is causing your financial stress
Do you have bills that are causing this stress? Are you worried about retiring? Why do you have this stress? You can't fix something if you don't know what is causing the problem.
2. Know where you stand with your finances
What does your cash flow look like each month? What debt do you have? Are you on track for retirement? We often experience stress with things when we don't know what our future holds. How do you know what your future holds if you don't know where you are at currently?
3. Living Below Your Means
Do you have more money coming in than is going out each month? Do you need to create a budget? How do you expect to not be stressed if you are barely making ends meet? You need to have a margin for error in your cash flow so that you can create opportunities for yourself and not be worried about missing a bill payment.
4. Create an emergency fund
Can you cover unexpected life events without taking on debt? How do you expect to not be stressed if you are barely making ends meet? If you have a solid emergency fund, you
probably won't have as much financial stress in your life.
5. Create a plan
What goals do you want to accomplish and how do you plan on accomplishing them? You have to take action after you create a plan or else you won't get anywhere. Then it is important to continue
to monitor the plan because you should plan on your original plan not being the one you stick to. Most of the time things will need to be updated.
6. Consider outside help
Why go through something by yourself when you could have someone help? An advisor could have valuable lessons they have learned to help you. We have helped people from all walks of life
and may know a couple of strategies or perspectives that could help you.
Additional Financial Thoughts
Life is a combination of skill and luck. You can control one but not the other. Focus on the one you can control.
Do you see any of the goals you have for yourself?
Article: U.S. markets outlook for 2023 - Stock Prices
Being a Leading Indicator
“…stock markets usually start to recover before a recession ends. Stocks have already led the economy on the way down in this cycle, with nearly all major equity markets entering bear market territory by mid2022. And if history is a guide, they could rebound about six months before the economy does.”
Source: Capital Group: U.S. markets outlook for 2023
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We look forward to helping people just like you every day. So if you just want to have a conversation about something top of mind or take the relationship to the next level, don't hesitate to reach out.
Additional Disclosures
THE MATERIAL CONTAINED IN THE NEWSLETTER IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INTENDED TO PROVIDE SPECIFIC ADVICE OR RECOMMENDATIONS FOR ANY
INDIVIDUAL NOR DOES IT TAKE INTO ACCOUNT THE PARTICULAR INVESTMENT OBJECTIVES, FINANCIAL SITUATION, OR NEEDS OF INDIVIDUAL INVESTORS.
ALL EXAMPLES ARE HYPOTHETICAL AND ARE FOR ILLUSTRATIVE PURPOSES ONLY. THE INFORMATION PROVIDED HAS BEEN DERIVED FROM SOURCES BELIEVED TO BE RELIABLE, BUT IS NOT GUARANTEED AS TO ACCURACY AND DOES NOT PURPORT TO BE A COMPLETE ANALYSIS OF THE MATERIAL DISCUSSED