If you’re like most Canadians, at some point in your life you’ve experienced (or are currently experiencing) some stress or anxiety when it comes to personal finances. Debt levels, volatile markets, aggressive news cycles and big decisions all take a toll on our mental well-being. If you’re looking for a few simple ways to combat this strain and unburden yourself, here are a few suggestions:
1. Refocus on your goals. A way to alleviate financial anxiety is to take a step back and re assess your goals. Money is not and should not be your end game; rather, you should focus on what money can do for you and your family. Are you working towards buying a home? Retiring early? Taking a vacation? Ask yourself what your money is to be meant for and keep that mission at the forefront of your mind.
2. Build a plan. Take time to concentrate on the factors you can control (what you save, how you save, what you choose to invest in) and do the math to see if you’re on track. At your current pace, how long will it take you to be debt free? How long until you can switch careers? How long until you can hit that goal? By having a timeline in place for achieving your financial goals, you’ll feel much better about your current state and where you are in your journey.
3. Mitigate the risks. Ask yourself, “what can stop me from reaching those goals?” Would an unexpected injury, job loss, illness, or bear market put an end to your plan? If so, take the necessary steps to review and shore up your personal insurance protection (home, life, disability, critical illness etc.), build an emergency fund (three to six months of living expenses) and assess your investment allocation. Putting these guardrails in place will help you understand that your plans can run smoothly through any life scenario.
4. Work with a professional. You don’t have to go it alone and shoulder all the responsibility for your household financial decisions. Consider offloading some, most or all the weight on a financial security advisor you trust. Making one decision on who to work with will save you countless hours of energy and effort in your future decisions.
5. Ignore the noise. Take some time away from the things we all know cause stress. Social media and news outlets are competing for our attention, so sensational stories make the best stories. What happens in the outside world often has far less bearing on our household finances than you may think. You won’t lose anything by taking a break from the noise while you will certainly gain some relief. This information is general in nature, and is intended for informational purposes only. For specific situations you should consult the appropriate legal, accounting or tax advisor.
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