Let It Go: Stress, Finances Don’t Mix Well

Ray’s Take: Worrying is a way that our brain prepares us for the next challenge or opportunity, and it’s healthy in low doses. But too many of us are consumed by worry, which creates stress. And stressful thinking can sabotage your finances. A 2015 study by the American Psychological Association found that money is the leading cause of stress for many Americans.

Worrying affects not only your quality of life but also the quality of life of those around you. And worrying about money can lead you to make bad financial decisions. And actually lead to poor health and strained relationships, which may cause more financial issues. It can become an endless circle leading to a downward spiral.

Some deal with worry by ignoring reality and any constructive ways of dealing with it. This rarely helps.

We all deal with stress in different ways, but a good approach to reducing money worries is to take an active role in taking charge of your finances. Money is a wonderful servant but a terrible master. Always be aware of how much debt you owe and take steps to reduce it. Set some goals and develop a plan to pay off that debt or buy the house you’ve been dreaming of.

Changing the way you think and changing the things you are doing can have a big impact on your stress levels. These are two things that you have control over in a world that sometimes seems to be taking us for a roller coaster ride. Taking a hard look at the worst-case scenario, and figuring out that you would survive it somehow, can take the worst of the edge off of your stress level.

If you’re a worrier, it’s time to let it go. Assessing the details of your situation can seem like an overwhelmingly stressful practice, but if you use stress-reducing tips to keep you on track, you might finally have the control you need to diminish those anxiety levels for the long term.

Dana’s Take: Do you remember the Travelers Insurance commercial with the shaggy white dog that constantly moved his bone because he was worried it would disappear?

It’s easy to become like that poor dog without even realizing we’re doing it.

It’s possible we learned to worry about money from our parents. Or use worry to stay on top of our finances as a kind of safety valve. Or we may simply worry because we don’t know where all of our money disappears to each month.

Worry less. Starting now. Start by figuring out the difference between irrational worries that you can set aside and valid concerns that need action. Once you start figuring things out, all of that worry starts to melt away.

The Magic Numbers
Realistic Returns