Ways to Cope with Financial Stress Backed by Science

It’s not just you. Financial stress is everywhere right now.

In fact, more than 70% of Americans consistently say they’re stressed about their personal finances, according to CNBC/SurveyMonkey polling from the past three years. This year alone, 38% reported being very stressed, and that includes nearly a third of high earners making over $100,000.

That should tell you something: Financial stress doesn’t discriminate. Whether you’re living paycheck to paycheck or sitting on a sizable retirement account, the uncertain economy, sticky inflation and global instability are enough to rattle just about anyone.

But while the sources of stress may feel out of your control, how you respond isn’t. And science gives us some real strategies that can help you feel more calm, confident and in control of your financial future.

Why You Feel This Way (and Why It Makes Sense)

The first thing to know is that it’s okay to feel stressed, no matter your financial situation.

It can seem like you’re being squeezed from multiple directions. For instance, prices for essentials like food, gas and housing rose sharply during the inflation spike of 2022 and haven’t fully come back down. Even though inflation has eased, it still costs nearly $114 today to buy what cost $100 just two years ago.

At the same time, uncertainty around everything from trade policies to interest rates are adding more pressure.

People cope in different ways, such as delaying purchases, stocking up on goods or changing investment strategies. But these responses are largely reactive. They don’t address the underlying anxiety that comes from uncertainty, or the lack of control that so often drives financial fear.

That’s where the next set of tools come in.

Strategy #1: Focus on What Is Within Your Control

Research in cognitive behavioral therapy shows that simply separating the things you can control from the things you can’t can dramatically reduce anxiety. You can’t control interest rates or trade policy. But you can control your spending, saving, and investing decisions.

Start with a financial inventory. Review your emergency savings, debt payments, retirement contributions and budget. This isn’t about judgment, but rather, clarity. And clarity often brings relief.

Then, take a moment to define what you actually need from your money right now. Are you trying to build a cushion? Save for a major expense? Stay the course with retirement?

Once you define the goal, you can start making calm, rational decisions that support it.

Strategy #2: Break the Stress Loop with Small Wins

Financial stress often creates paralysis. You don’t know what move to make, so you make none. Unfortunately, inaction can make the problem worse.

One way to interrupt this cycle is through small, achievable actions. Behavioral science calls this “behavioral activation,” and it’s a proven method for reducing anxiety and improving motivation.

So instead of overhauling your whole financial life, start with something small. Open a high-yield savings account. Cancel an unused subscription. Set up a $25 automatic transfer into your emergency fund. These moves might feel insignificant, but each one builds momentum.

And momentum breeds confidence.

Strategy #3: Don’t Let the Headlines Steer Your Portfolio

In times of volatility, it’s tempting to make changes to your investments based on the news. But our brains don’t always help us make the best decisions. Certain mental shortcuts – like confirmation bias, where we seek out information that supports what we already believe – can make us more vulnerable to misinformation and emotional reactions.

But unless your financial goals have changed, your plan shouldn’t either.

As credentialed and experienced financial advisers, we can say that maintaining a long-term perspective is essential, especially when markets feel uncertain. That might mean reviewing your asset allocation, making sure it still reflects your risk tolerance or checking that your investments are properly diversified.

Just don’t mistake activity for progress. Reacting to every news cycle can do more harm than good.

Strategy #4: Talk to Someone (Preferably a Human)

There’s a reason even therapists go to therapy. Sometimes, you need an outside perspective, especially when emotions are high.

Whether it’s a licensed counselor, a financial planner or a trusted friend, talking to someone can provide relief and insight. And if you’re working with a financial adviser, this is exactly when we earn our keep.

A good advisor can help you cut through the noise, avoid costly mistakes and remind you of the big picture when the details get overwhelming. In truth, it’s not just financial planning, it’s emotional support.

The Bottom Line

Financial stress is real, and you’re not alone. But science-backed strategies, from building small habits to shifting your mindset, can help you navigate uncertainty with greater peace of mind.

You may not be able to predict the economy, but you can take meaningful steps to protect your financial health and your mental well-being in the meantime.

And if you’re not sure where to start, we’re here to help you sort it out.