Do you find yourself worrying about your financial stability? Even if you’ve always made the best financial decisions, nothing can quite prepare you emotionally for devastating events like the COVID-19 crisis. Whether you’re watching your assets decrease in value, or you’re on a furlough from your job, financial worry can catch up with you quickly.
We’re here to help. Below, you’ll find six steps you can take to cope with financial worry.
Take a Step Back
Because our finances are tied so closely to our emotions, it’s important to take a step back and assess the situation. You might have jumped straight to worry without stopping yourself long enough to take in the facts. Analyze your financial situation: how much you’re bringing in, how your investments are doing, and any other elements that affect you financially. Before you take action, calmly evaluate your situation as a whole so that you can make well-informed decisions when the time comes.
Evaluate Your Budget
Once you have a comprehensive picture of your financial standing, it’s time to reevaluate how you’re spending and saving. Regardless of how the financial crisis has affected your finances, you might find that your current spending no longer aligns with your values. Even if you change absolutely nothing about your budget, it’s wise to consistently check-in on where your money is going.
Review the CARES Act
The recently-passed CARES Act provides relief that affects most Americans in some way. Review the provisions of the act and determine how they might apply to your financial situation. We recently shared a helpful article about what you should know about the CARES Act that explains the primary elements of the law.
Focus On What You Can Control
Feelings of panic are often accompanied by the feeling of being out of control. One way to cope with that out-of-control feeling is to focus on what you can control instead. While you may not be able to control market trends, for example, you can control how you respond to and prepare for ups and downs in the economy. This thought process can apply to many areas of your stress. Another example is that while you cannot control your company’s stability, you can control how much you’re saving in your emergency fund.
Don’t Act Out Of Panic
Decisions made from a place of panic rarely have good outcomes. Your financial decisions should be made based on logic and logic alone. Ensure that you have analyzed your financial plan and have thought through your next steps before you make a decision that could keep you from reaching your goals.
Lean On Your Financial Advisor
Find a financial advisor that you trust to guide you through the ups and downs of the economy. Your advisor acts as your ally, empowering you to make the best decisions based on your long-term goals. Leaning on your advisor will help you stay on track to achieve the best version of your financial future, even as you face so much uncertainty.
Contact us today if you have specific questions. Our advisors are here to help guide you.
