5 Ways to Manage Financial Stress in 2023
Let’s address the financial elephants in the room - inflation and recession. Just the mention of these terms right now is enough to wrack some nerves. Thankfully, you can overcome the worry and not have it define your future. Below, are 5 ways you can manage financial stress in 2023:
1) Review Market History
One way to overcome your financial stress is to review market history. Take the time to review more recent downturns like the Great Recession and the Coronavirus crash.
You’ll quickly realize this isn’t the first time we’ve faced tough financial times. You’ll also see that the economy has always rebounded and that long-term rewards favor investors who stay the course rather than those who panic sell.
2) Establish a Budget
A budget will give you an overview of what your money is doing. It’ll show you what’s coming in, what’s going out, and where you can save. By working a budget, you start seeing more of the variables you get to control.
A budget empowers you to:
Redirect money as you see fit
Start saving towards meaningful goals
Separate the habits that are helping from the ones hurting you
3) Build an Emergency Fund
An emergency fund is a buffer between you and the unexpected. It protects you during vulnerable times of need and is an absolute necessity in counteracting financial stress. For this reason, you’ll want to have at least 3 - 6 months of your living expenses saved up in an immediately accessible place like a savings account.
4) Eliminate Unhealthy Spending
Bad spending habits can sabotage your financial future and undermine your autonomy. By correcting them, you can build confidence in your ability to direct your future. Great places to cut back on unnecessary spending include: canceling unused subscriptions, going out to eat less, and not spending until you’ve checked your budget.
5) Work On a Plan with a Financial Advisor
At Burton Enright Welch, we understand how stressful the economy is right now. But by working with a financial advisor, that stress can come off your shoulders. You’ll have an experienced professional to help you understand market history, work a budget, build an emergency fund, eliminate unhealthy spending, and put a long-term plan in place that aligns with your values. For one-on-one help, please feel free to book an appointment with one of our advisors