Reader Q&A: It Feels Like So Much Is Out Of My Control—How Can I Stay Financially And Mentally Grounded Right N?
Sabrina age 41 asks...
Facing a financial dilemma? We are here to help.
Every month, we’ll answer questions from you, our readers, to help you get a better understanding of your finances.
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Today's question is from "Sabrina age 41”:
Every time I see headlines about a possible recession or global economic problems, I get overwhelmed and anxious. It feels like so much is out of my control— how can I stay financially and mentally grounded during times like this?
Right now, it feels like every time we turn on the news, things are getting worse.
Sometimes watching the news can feel like watching a doomsday film. The negative, the cost bad news can feel like it’s sucking the air out of the atmosphere.
However, focusing on keeping yourself grounded both financially and mentally is one of the best ways to combat all the negativity.
How to stay financially grounded during difficult economic times
We've got some advice to help you feel in control and less stressed.
Focus on your personal economy
Instead of worrying about the global economy, take control of your own by budgeting, saving, and investing wisely.
The reality is that we can't control what happens in the economy. Wouldn't it be nice to throw a penny into a wishing well and make everything better?
However, all hope isn’t lost because there is one thing that, no matter what, you have control over: your money. Let’s take control of your finances in three simple steps.
Budget
If you don’t already have a budget, now is a good time to try one out. Budgeting puts you in control of your money by making you conscious of how much you’re earning and spending. There are lots of budgets to try:
Save
Hearing or reading the word recession is enough to make us break into a cold sweat. Instead of focusing on if or when the recession will hit, focus on being prepared for it by saving money.
Putting money aside for emergencies or long-term goals can ensure you’re prepared for any economic downturn. If you suddenly get a reduction in hours, need a new car part, or face a medical emergency, having savings to cover these costs can help keep you afloat.
Likewise, focus on saving for the long term, like retirement. Committing to your long-term savings goals will help you to be more prepared in the future.
Invest
You’ve probably read about the stock market rising and falling this week. One of our best defenses against market instability is a diverse investment portfolio. The three-fund portfolio is a simple way to diversify by dividing your investments between U.S. stocks, bonds, and international stocks.
With a diverse portfolio, you’re not putting all your eggs in one basket. If part of your portfolio takes a hit, you can still keep your head above water with your other investments.
Strengthen your financial foundation
Having a strong financial foundation can look like spending within or below your means, making enough to cover your basic needs, reducing high-interest debt, and controlling your spending.
Strengthen your foundation by:
Being mindful of your spending.
Actively paying off high-interest debt by contributing more than just the minimum amount.
Frequently check your bank accounts and their status.
Having weekly or bi-weekly times where you review your expenses, income, and investments.
By having a sense of where you stand financially, you can better adapt to the ever-changing economic climate.
Stay consistent with financial goals
Right now it might feel like you’re running on a treadmill towards your goals. Every time you get a little closer, you hear interest rates are up, tariffs are high, etc.
Watching the news can make you want to give up on your goals. However, it’s important to stay consistent. You might have to change how you progress toward your financial goals.
Maybe you were saving $200 a week towards a home, and you have to reduce that to putting away $100 a week.
Progression towards your goals might slow down or take a little longer, but the important thing is to not give up. Remember that making small, consistent habits can get you a lot further than giving up.
Avoid making emotional money decisions
Fear is a strong emotion, that a lot of us are feeling right now about our money. You might feel compelled to sell your stock when there’s a market dip. You might start panic buying. Everyone reacts to fear differently, but the most important thing is not to let fear be in the driver’s seat.
Before making any financial decision, ask yourself:
Am I making this decision out of fear?
Is this decision aligned with my financial goals?
Do I feel calm enough to make this decision?
Sometimes all it takes is a few deep breaths to help you see things clearly.
Unfollow fear-based content
We live in a time where doomscrolling fits into our schedule like taking the dog for a walk. One shocking headline leads to another desperate news post, and before we know it, we’re scrolling in a dark room with our heads under the covers.
Many platforms use fear-based content to get you to click or scroll on something. But you don’t have to play that game. Here’s how to be wiser with what you consume:
Follow reliable sources.
Always read past the headline.
Check who the post or article is written by and determine if they have any ulterior motives.
Question the information you consume.
Look out for sponsored content.
Take a social media detox
Practice financial gratitude
Gratitude is a powerful tool to help you shift your mind from worry to calm. You can practice financial gratitude by:
Keep a financial gratitude journal
Regularly jot down things you are thankful for financially. This could be as simple as having a steady income, a roof over your head, food on the table, paid bills, or even just a few dollars set aside in savings. Acknowledging these "financial blessings" helps you focus on abundance rather than scarcity.
Reflect on what money can do
Instead of focusing on what you lack, appreciate what your money already enables. Think about necessities like shelter, food, transportation, and utilities. Recognizing all the things you have because of the money you earn can fill you with a sense of pride.
Celebrate small wins
Acknowledge and celebrate every step forward, no matter how minor. Did you pay off a small credit card balance? Add a few extra dollars to your emergency fund? Stick to your grocery budget for the week? These small victories build momentum and reinforce positive financial habits.
Practice mindful spending
Before making a purchase, especially a non-essential one, pause and reflect. Ask yourself: "Does this align with my values? Is this something that will end up collecting dust in the back of my closet? Am I buying this to impress others?" Pause to think before you swipe your card or press “buy now” helps prevent impulsive decisions and keeps more money in your account.
Give back
Philanthropy and acts of kindness are powerful ways to cultivate financial gratitude. Donating to a cause you care about, or buying lunch for a friend who is going through a rough time, reminds you that you can do some good with the money you have.
Learn from mistakes
Instead of ruminating about how you spent way too much at dinner, view your financial mistakes as valuable learning opportunities. Forgive yourself for making a mistake and strategize how you’ll do better next time.
Connect your spending to values
Consciously align your spending with what truly matters to you. When you spend on experiences, education, or contributions that align with what you care about, you naturally feel more grateful for how your money is being used.
Explore recession-resistant skills or income streams
Upskill or start a small side hustle to create a financial buffer.
Now is a great time to be proactive by learning some recession-proof skills that can help boost your income or help you save money. Some skills include:
Preparing meals at home to reduce the costs of eating out.
Learning automotive skills can help you save on car repairs.
Taking online courses specifically in technology, AI, or administrative tasks.
Consider taking up a side hustle such as:
Babysitting or providing childcare.
Selling physical or virtual products.
Get more ideas from this video!
Knowing that you have extra income coming in can help you feel ready to endure whatever changes may come your way.
Talk it out
Sometimes the best thing you can do is talk about your worries and fears. Consider opening up to a close friend or family member about your concerns.
Additionally, you can talk to a professional such as a financial coach or advisor who can not only empathize with you but help you come up with ways to take control of your financial situation.
Limit comparisons
You might be scrolling through Instagram and notice pictures of a friend vacationing for the second time this year. Likewise, you might be stressing about the economic state while other people in your life don’t have a care in the world.
When others around us are doing well, or not so well, it’s normal to compare ourselves. However, comparison road is one of the fastest ways to unhappiness.
While someone’s financial journey can look one way on the outside, behind closed doors we don’t know what’s going on.
Maybe you see someone who has invested in Bitcoin, and their investments are taking off. You might consider making a similar move, but remember one thing: The best financial decision you can make is one that works for your situation.
No matter what, keep your eyes on your own journey.
Prioritize self-care
Sometimes you just need to escape from it all. During stressful times, it’s common to forget about self-care. Simple things like getting eight hours of sleep, going for a daily walk, and staying hydrated can help you take better care of yourself. Taking care of your physical body will keep you strong enough to care for yourself mentally and emotionally.
Remember, amidst the chaos in the outside world, continue doing the things that bring you joy. Go for a walk, call up your best friend, and bask in the sun. Never feel bad for making yourself feel good.
We can’t control the future but we can influence the present
Now that you have some tools to help center yourself during these times, remember to take things slowly.
Focus on one goal at a time. You don’t need to create emergency savings, diversify your stock, or get a new job all in the same week.
Start with one small goal. Once you start making progress, you can add on another goal.
And if you’re ever in doubt, we are here to support you with our over 30 free courses to boost your financial literacy. We even have courses on investing.
