Financial Anxiety

Americans are currently losing sleep over concerns about their financial status. Recent research from Northwestern Mutual states that nearly 23% of millennials report that financial anxiety makes them feel physically ill. The survey discloses that Americans worry about losing their job, adequate insurance and financial security during retirement. The individuals interviewed agreed that financial stress affects their relationship with a spouse or partner hourly, daily or weekly.

Financial Goals

Regardless of your income there are times in life when you fall behind in your financial responsibilities. Whether you are trying to get out of debt, save enough money to retire or pay for repairs on your home you will have to manage your financial stress. Doug Hughes a Partner and Lead Consultant of Comprehensive Financial Consultants gave the example of being 45 years old and receiving bi-weekly paychecks. Doug stated if you want to retire at 67 years old you have 572 paychecks “to pay off your mortgage, put your children through college, save for your retirement and enjoy life. This creates stress.”

Experts suggest that you build an emergency fund that would provide three to six months of income for you and your family. Even if you can only save $10 to $20 dollars a paycheck it will provide emotional security to know that your money is there for you. This cash buffer for medical care, transportation concerns or home repairs will help to reduce your stress. Many people continue to spend more than what they make which creates the cycle of “never having enough” cash flow so they resort to credit cards. Bypass this stress by purchasing items you only have the cash for or can pay off at the end of the month to avoid the finance charge. 

Financial Plan

To build a stress free financial life, start with a monthly budget. Ben Barzideh , wealth advisor at Piershal Financial Group suggests that we “start by looking at your current situation, analyze the cash flow that comes in and the cash flow leaving. Then build in some goals for the future and fill in your assets with some growth assumptions. The plan will be a blueprint for how much you will need to live comfortably now and into retirement.”

Couples and families must be mindful of managing their expenses to improve their financial health. Being mindful will help you purchase things with a decision-making process to detour impulsive purchases. People tend to spend less when they pay with cash. Current studies are reporting that when we are mindful it can benefit the brain to perform better and reduce stress and anxiety. Mindfulness is also linked to increased creativity, helping you discover solutions and solve problems. So be mindful and get a good night’s sleep, eat nutritiously and set aside thirty minutes a day to exercise to be at your optimum each day.