Managing money anxiety during uncertain times
It’s April 7th 2025 and as it’s the start of the new financial year I was going to write about how the move into the next tax year can act as a fresh start for your money. But with Trump Tariffs and the resulting market turmoil making a lot of people feel nervous, I decided it would be more helpful to focus on the strategies we can use to soothe financial anxiety.
Step one: identify triggers
Try to work out what causes you to worry. Is it the news headlines or listening to financial updates several times a day that heightens your nerves? Perhaps what people are saying on social media is getting to you, or maybe against the backdrop of uncertainty it’s the pressure of being the sole or main breadwinner in your household that’s making things feel strained?
By pinpointing the cause of your concerns you’ll be able to assess whether there’s anything immediate that you can do to alleviate your worries. E.g., it could help to speak to a trusted friend or to a partner if you’re worried about the stability of your income or, if your anxiety is triggered by the news or social media, you could try to limit your exposure to it. When I worked in the City, I found it helpful to make my home a news-free zone once I’d clocked off from work. Otherwise, I found that working through a crisis at the office and continuing to hear about it during my downtime was just too much.
Step two: screen out ‘noise’
Anchor yourself to the practical, everyday steps you can take to bring your long-term plans for your money to life.
Sometimes the stock market will go up and sometimes it will go down. The same is true of Gross Domestic Product (GDP) and other measures used to evaluate the health of our economy. Swings are unfortunately inevitable, but the average person can do little about them.
What you are in control of is where you direct your attention. Focusing on the ups and downs in the economy and share prices will amplify worry. Instead, direct your focus towards your personal financial plans because taking a longer-term approach can alleviate concerns about short term bumps in the road.
Step three: take action
When we worry, we do sometimes identify specific and rational areas of concern. A good example could be feeling jittery about the economic outlook and, after spending some time focusing on your finances, you realise that you don’t have an emergency fund to fall back on if things get tough. If this sounds like you and you’re in a position to change this, then taking action by putting a little bit of money aside each week or month could ease some of your concerns. Remember, a cash safety net should be easy to access. If you’re new to budgeting and saving, it could be helpful to try the ‘50/30/20’ approach, whereby 50% of your after-tax income goes on things you need, 30% can be spent on ‘wants’ and 20% goes into savings.
In my own case, I tend to use bouts of uncertainty to add to my cash safety net and, when I had a mortgage, I’d increase my overpayments if it was possible for me to do so. If neither were immediately possible, then I’d look at my budget and assess whether I could trim my discretionary spending. Taking practical steps to shore up my reserves made me feel like I was doing something useful, and in turn, this curbed the amount of time I spent worrying.
Step four: air out your concerns
If your anxiety stems from short or near-term financial priorities like retirement, re-mortgaging, or dealing with redundancy, then it could be worth discussing your worries with your financial adviser or mortgage broker.
Similarly, if money anxiety is a persistent feature in your life, then it could be helpful to talk your concerns over with a financial coach. A financial coach will listen and work with you to identify patterns in your thinking and actions. A good financial coach will collaborate with you and help you to identify solutions and strategies to deal with your anxiety in a way that brings about meaningful and lasting change.