According to a recent study, 70% of Americans are feeling financially stressed. That's hard! But there are steps you can (and should) take to de-stress your financial life...For starters, watch this YouTube video to learn what's causing the increase in financial stress and how you can de-stress your financial life in uncertain times.
What's fueling the surge in financial stress and what can you do to de-stress your financial life?
Higher Expenses
Nearly 60% of respondents cited inflation as the main contributor to their financial stress, followed by economy-wide instability with rising interest rates and a lack of savings adding more fuel.
Growing Economic Uncertainty
Bank failures and tightening economic policy alongside a perceived real estate bubble continue to weaken consumer confidence and create uncertainty for Americans.
Increasing Cost of Debt
Rising interest rates continue to push the cost of debt higher and higher. This increase in carrying cost weakens buying power and increases the cost of carrying debt - especially for high-interest debt.
Higher expenses, growing economic uncertainty, and the increasing cost of debt are individually enough to stress you out, but all three are super stressful, especially when combined at the same time. This begs the question...
How do I reduce financial stress in uncertain times?
No one can be sure about the future of worsening economic conditions or a recession, but there are ways to reduce your financial stress:
Start an emergency fund & start budgeting
Start investing in retirement to capture the maximum employer match (if available)
Pay down debt using The Debt Avalanche approach
Start investing >20% of income to max out retirement
Ever-shifting economic conditions are a regular part of financial life just like peaks and valleys are a normal part of investing.
REMINDER: You don't need to control the uncontrollables to build wealth - you just need to control what you can control.
You've got this!
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