Through the course of life, our financial needs constantly evolve. Lack of proper management of these needs could result in financial anxiety. So, how can one effectively deal with this? Here are three ways to keep financial anxiety in check.
- Identify financial needs: The first and foremost thing is to identify one’s financial needs and prioritise them. A comprehensive financial wellbeing checklist could help identify needs and bridge gaps. It’s important to review your financial needs every few years.
- Work With A Financial Advisor: The role of a financial advisor is to pay attention to your financial decisions and construct a portfolio that manages risk and delivers on performance. In the investment context, financial anxiety arises from underperformance or fear of losing money. An advisor can handhold you through this process and vet the quality of investments. While nothing is guaranteed, a sound process could help minimize risks. Another source of financial anxiety is from unintended consequences of financial decisions. An investment advisor cannot prevent events from occurring but can prepare you for them.
- Work To A Plan – Having a plan in place reminds you of what matters most. So, you needn’t sweat the little things anymore and instead, you focus on your long-term financial wellbeing. Financial planning can help you bring down your debt, prepare for uncertainties, insulate yourself and your loved ones from financial risks, and provide for your future. But a plan is effective only when it is current. So, it’s important to respect the process of financial planning by regularly reviewing and implementing the plan.