If you are like many other Americans, the news headlines may be giving you financial anxiety.
People report being stressed over current events, whether it is worrying about potential job losses, stretched budgets, or escalating credit card bills.
In a CNN Business article by Jeanne Sahadi, we shared tips on how to deal with financial anxiety and what you can do to wrestle your stress levels back down to earth.
First of all, focus on what you can control. While you can’t stop bad things from happening, you can often minimize the damage by adopting good financial habits, like building up your emergency fund, spending within your means, and avoiding high priced debt.
Next, face your fears by spelling out what’s the worst that could happen, then ask yourself how you could cope with the challenges. While no one wants the worst to happen, it helps to think proactively and develop contingency plans B (and maybe even C!) to deal with disaster.
For example, if you’re fearful of losing your job, you may want to start updating your resume and networking efforts. Consider cutting back on discretionary spending, and check to see how many months of living expenses are covered by your emergency fund. If you’re worried about running out of cash, consider applying for a home equity loan (HELOC) so you don’t need to resort to more expensive credit card debt. On the flip side, a quick review of your financial resources may reveal that you are in good shape with nothing to worry about. Whatever the outcome, knowing where you stand can eliminate anxiety and help you prepare for the future.
You might find you can take the setbacks in stride, and it is calming to know you’ve met the problems head on and have a strategy to survive and even thrive. Rehearsing different scenarios in advance and planning how to react can protect you by preventing you from going into “panic mode” when the time comes.
And don’t forget, if you’re too shaken by events to think straight, it’s best to turn to a trusted and impartial advisor who can examine the options with you and help you make the right decision.
To read the entire CNN Business article, click here: https://lnkd.in/erhK_cQK