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CNBC
7 days ago
- Business
- CNBC
Setting aside 'worry time' can help you get better with money, therapist says—here's how
Feeling uneasy about your financial future? You're not alone. Nearly 7 in 10 (69%) Americans say financial uncertainty has led them to feelings of anxiety and depression, according to a recent survey from Northwestern Mutual. Financial anxiety is a looming feeling, often borne of the notion that you're not doing well enough — for your future self, for someone your age or compared with your peers, says Megan McCoy, a financial therapist and professor at Kansas State University. "Anxiety tends to swirl in our minds all day, especially when it's about money," she says. But instead of trying to avoid these feelings or letting them get in the way of other things you want to accomplish, set aside time to deal with them. "A surprisingly effective strategy is to schedule a daily or weekly 'worry time' — 15 to 20 minutes dedicated only to your financial concerns," McCoy says. First, write down everything you're anxious about. This could include everything from concrete, numbers-based worries ("I'm not sure how I'll afford it if my kid wants to go to a private college") to lifestyle-based anxieties ("Everyone on my Instagram feed appears to be taking more frequent, nicer vacations than I do"). From there, sort the items into two lists: things you can control and things you can't, says McCoy. "This process helps transform vague, persistent worry into two buckets: action and acceptance," she says. "It's not about ignoring your fears — it's about learning how to manage them with intention." For the things you can control, focus on taking small, incremental steps toward the change you want. That may be mean setting up regular, automatic deposits into a 529 account or a vacation fund. If you can name dedicated savings accounts after these goals, even better, says McCoy. Specifically named accounts "help people feel organized and emotionally attached to their progress," she says. "They also reduce the temptation to spend impulsively because the money already has a purpose." If getting this set up on your own sounds daunting, don't be afraid to ask for help, McCoy says. A financial planner can help you translate your fears and goals into actionable steps. You may even be able to get free help through your employer. As for the factors that are out of your control — the future of the stock market, U.S. trade policy and tax rates, how much money your friends are making — give yourself a little grace. McCoy suggests taking a step back and trying to redefine success on your own personal terms. Do you have choices? Does your spending align with your values? Are you being intentional about the ways you save and spend money? If you answered yes to all three, you may be doing better than you think. "This reframing reduces pressure and invites a more grounded, compassionate view of financial health," McCoy says.
Time of India
17-07-2025
- Business
- Time of India
Your money stress may not be about the paycheck: What's really behind your financial anxiety?
In a world increasingly obsessed with financial milestones—first car, dream home, seven-figure bank balance—it's easy to assume that money anxiety is simply about not having enough. But what if that constant undercurrent of financial worry isn't about numbers at all? What if your fears around money are actually tied to something much deeper—like who you think you are, or who you believe you should be? This thought-provoking perspective is emerging at the intersection of psychology and personal finance, thanks to experts like Megan McCoy, a financial therapist and professor at Kansas State University. In a recent feature published by CNBC Make It, McCoy reframes financial anxiety not as a crisis of income, but as a possible identity conflict. 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Financial anxiety, however, is more vague. It's a fear that lingers, even when things seem fine on paper.' It's this invisible weight that keeps people up at night, even when their credit score is healthy and bills are paid. To get to the root of this, McCoy often asks her clients a deceptively simple prompt: 'If you woke up tomorrow and by some miracle your financial anxiety was gone, what would feel different?' The answers she receives rarely involve a dollar figure. Instead, clients talk about feeling freer, lighter, more in control. They describe being more present with their kids, less guilty about taking time off, or simply not comparing themselves to others on social media. That's when the real issue reveals itself—because money, it turns out, is often just the most visible outlet for deeper insecurities about identity, self-worth, and societal expectations. You Might Also Like: If your salary is low, Akshat Shrivastava says Sunday is the most important day of your week Financial Anxiety or Life Misalignment? This exploration resonates with a growing number of young professionals and families who find themselves constantly chasing the next financial goal, only to feel just as anxious when they reach it. It echoes recent viral commentary from finance educator Akshat Shrivastava , who advocates for intentional living over status-driven spending. His advice—save wisely, choose value over vanity, and create instead of consume—has struck a chord precisely because it taps into something emotional: the need to feel purposeful, not just prosperous. Shrivastava's idea that "some savings is better than none" becomes more profound when seen through McCoy's lens. Saving isn't just about building wealth—it's about reclaiming agency. It's iteration capital, a cushion for reinvention, a vote of confidence in your future self. A New Kind of Wealth So what happens when we stop asking, 'Do I have enough money?' and start asking, 'Am I living in alignment with who I want to be?' According to McCoy, that's when the healing begins. Maybe you open a small savings account for weekend getaways, not because it's practical, but because it symbolizes freedom. Maybe you stop comparing your career trajectory to your peers' and start defining success on your own terms. McCoy's miracle question might help you untangle financial fears from personal truths, reminding that wealth is not just about accumulation, but about intention. And maybe, just maybe, the path to financial peace begins not with earning more—but with understanding why you're worried in the first place. You Might Also Like: She felt overburdened with work but undervalued by bosses. Ankur Warikoo's advice to 'quiet' employee is striking a nerve across LinkedIn
CNBC
15-07-2025
- Business
- CNBC
7 in 10 Americans are anxious about money—and earning more won't necessarily help, says therapist
Americans are feeling increasingly uneasy about their financial future. Nearly 7 in 10 (69%) say financial uncertainty has led them to feelings of anxiety and depression, according to a recent survey from Northwest Mutual — an 8-percentage-point increase from 2023. It's tempting to point to large-scale financial trends to help explain the uptick. Americans hold near-record levels of credit card debt, for instance, amounting to $1.18 trillion, according to data from the Federal Reserve Bank of New York. And consumers are still trying to gauge how shifting U.S. tariff policies could ultimately affect the rising cost of goods and services. While those factors may explain why some people are feeling stressed about money, they don't get to the heart of financial anxiety, says Megan McCoy, a financial therapist and professor at Kansas State University. Financial stress, she says, is a response to a concrete event. You need new tires and don't have enough money in your bank account to buy them, for example. Anxiety is harder to pin down. "Financial anxiety doesn't have that external effect. It's just this looming feeling," McCoy says. "It's an ambiguous fear that something is going to go wrong or you're not doing good enough or you're not going to have enough in the future." If those sorts of feelings have you tossing and turning at night, experts recommend taking the following steps. While it's possible for people in any financial situation to experience anxiety about their money, having good financial health certainly helps, experts say. After all, someone with no debt and ample retirement savings has a much less uncertain future than someone with escalating credit card bills and no savings. To alleviate financial stressors, the No. 1 thing to focus on is your emergency savings, says Niki Glen, a certified financial planner and wealth management advisor at Northwest Mutual. "You should generally have three to six months' worth of expenses in cash or cash equivalents in an emergency fund, and I'm actually suggesting a little bit more these days," she says. The more anxious you're feeling, the more you should prioritize building up a cash cushion that you can put to work in the event of an unforeseen expense. "If you have any big expenses coming up — big vacations, a new car, major home projects — I would suggest delaying those. That money can be more valuable for you as a financial buffer," Glen says. You may have much of your financial house in order, but still find yourself wringing your hands over money. Rather than feeling guilty about it, schedule weekly or even daily "worry time," where you spend 15 or 20 minutes focusing only on your financial concerns. Write down everything you're anxious about, says McCoy. Divide your concerns into two camps: things you can change and things that are out of your control. "This process helps transform vague, persistent worry into two buckets: action and acceptance," McCoy says. Focus on making steady progress on the things you can control, like paying down debt or saving toward goals such as a home down payment or your kid's college fund. Rather than looking at these goals as a whole, think of them as small parts of your daily routine. "For instance, instead of, 'I want to build a $10,000 emergency fund, try: 'After I make my coffee, I'll transfer $5 into savings,'" McCoy suggests. Of course, some things in the world of finance will always be out of your control, like the direction of the stock market or U.S. trade policy. "Finding a way to do these tangible things that you do have power over will alleviate some of the stress you have about the things you can't control," McCoy says.
New York Times
12-04-2025
- Business
- New York Times
How to Ease Your Money Anxiety When the Economy Is Stressing You Out
Even before this year's economic turmoil hit, financial anxiety among Americans was running high. Really high. Four out of five Americans in a survey for Discover last year said they were worried about their money situation, with inflation, everyday expenses and the state of the economy leading a litany of concerns. Nearly two-thirds said they would be financially unprepared if they lost their job, and more than half felt the same way about a recession. Now, tariffs and a global trade war, which could raise prices and discourage consumer and corporate spending, have economists raising their odds of such a downturn this year. Coupled with wild swings in the stock market, which is down about 9 percent for the year, it's no wonder that financial anxiety is spiking to new heights. 'Since Covid, we've all just been waiting for the next shoe to drop, moneywise,' said Megan McCoy, a financial therapist and an associate professor of personal financial planning at Kansas State University. 'For years now, it's been one kind of painful financial situation after another. We can't catch our breath.' The danger is not just the financial anxiety, which has been linked to higher risk of various health problems, from depression to heart attacks. It's also that the pressure can drive you to take actions that could ultimately make your financial situation worse. 'The urge people feel to do something to make themselves feel better can be overwhelming,' said Anne Lester, former head of retirement solutions for J.P. Morgan Asset Management and author of the book 'Your Best Financial Life.' 'But it's hard to make sound decisions when you're scared.' Here are six strategies that experts say will help you keep a cool head and protect your money when anxiety is heating up. Adjust your perspective. It's hard not to focus on the most recent hairpin turns of the stock market. In the span of just five trading days this month, the S&P 500 had one of the worst two-day drops on record (10.5 percent) followed by its best one-day climb since 2008 (9.5 percent). Add it up, though, and the index is down 4.4 percent for the month — and April isn't even half over yet. But what happens to stock prices in a single week, month or even year won't matter in the long run to retirement savers, many of whom have decades to go before they stop working, said Brad Klontz, a financial psychologist and author of the book 'Start Thinking Rich.' Even retirees often have an investment time frame that could span 20 or 30 years or more. From that perspective, stocks still look like a smart investment for long-term growth, particularly when paired with fixed-income assets for stability. Over the past 100 years or so, stocks have returned 10 percent annually on average, Dr. Klontz said, handily beating other assets. And while recessions are painful, he said, they're a routine part of an economic cycle, happening every few years or so, and the country has always bounced back from them, too. 'What feels in the short term like you're headed off a cliff is more like a speed bump when you look at it with a long-term perspective,' Dr. Klontz said. Viewing your 401(k) performance with a different lens is helpful, too, Ms. Lester said. 'We tend to anchor on whatever our highest balance was, so you may be focusing on how much money you've lost since then,' she said. 'But if you look at your balance from a year ago, you're probably still up. And compared to five or 10 years ago, you're likely up even more substantially.' Slow your roll. For some 401(k) investors, the urge to sell stocks as prices tumbled has proved too powerful to resist. With these savers shifting money from stocks to fixed-income funds, the volume of 401(k) trading during the first quarter of 2025 was the highest in nearly five years, according to Alight Solutions, which tracks workplace retirement plan activity. (The activity involved less than 1 percent of total 401(k) plan balances, but the jump is notable.) The sell-off picked up additional steam after the free-fall in the market on April 3 and 4, with 10 times the usual volume on Monday, April 7, the next trading day — the most transactions in a single day since March 2020. This shows how easy it is for anxiety to spur action that may not be in your best interest, since those sellers missed out on the surge in stock prices later in the week, which allowed the major indexes to recover a big chunk of the losses incurred so far this year. 'All decisions are bets — we never know if they're wise or not until time has passed,' said Naomi Win, a clinical psychologist and behavioral analyst with Orion Advisor Solutions, a wealth management tech firm. 'Resist the culture of immediacy by learning to pause and be thoughtful and take time on decisions rather than reacting on emotion.' One way to do this: Impose a rule for yourself that you must wait at least an hour before making a trade; set a timer to hold yourself to it. And seek out advice first from a trusted source — a financial adviser, if you have one, or a knowledgeable friend or colleague with a calm head and experience in up and down markets. This buys time to reverse the physiological response to acute financial anxiety. When stress rises, Dr. Klontz said, the body's fight-or-flight response kicks in, enlarging the part of the brain that processes emotions like fear and anxiety (the amygdala) and shutting down the part that helps us evaluate options and make informed choices (the prefrontal cortex). 'It takes a good 30 minutes to an hour to calm down,' Dr. Klontz said. 'Then the prefrontal cortex turns back on, and people are left feeling, 'Why, why did I do that?'' Don't look at your balances. (Really, don't.) The pain of losing money is more powerful than the pleasure of making it — a cognitive bias that behavioral finance experts call loss aversion. That's why constantly checking your 401(k) when the market is falling is a bad idea; seeing your lower balances only makes you feel worse. It can also increase the likelihood that you'll lose more money. According to studies from the behavioral economists Shlomo Benartzi and Richard Thaler, investors with long-term goals who rarely check their accounts end up earning significantly higher returns on average than those who monitor more often. Savers who check more frequently will more often see losses, which scares them off investing in stocks, even though stocks, over time, earn substantially more than bonds and cash. If you check your account daily, for instance, you're likely to see losses 30 to 40 percent of the time, historical data shows. If you check annually, you might observe a loss only once every three or four years or so. That's why advisers suggest checking your balances no more than once a quarter and perhaps only once a year. Try to limit your intake of bad news about the economy and market, too. 'We are herd animals, wired to pay close attention to the mood of people around us,' Dr. Klontz said. 'If you're constantly exposed to the panic of others, you're going to be very vulnerable to doing what everyone else is doing and making bad decisions as a result.' Imagine the worst. It may sound counterintuitive, but identifying your biggest fear about your financial situation now, then thinking about how you'd manage the fallout, can be a calming exercise. 'Psychologically, simply knowing there are options reduces anxiety in an otherwise paralyzing situation,' Dr. Win said. Say, for example, you're worried about losing your job. The first thing you might do is calculate how long your emergency fund will last, then reach out to professional connections who could help with a job search. If your job hunt lasts a long time and you burn through your savings, what would you do next? Maybe you could move to a cheaper apartment, downsize or even move in with family for a while. 'The worst time to make crisis plans is when you're in the middle of a crisis, because you're not thinking as clearly — it's the reason we do fire drills,' Ms. Lester said. 'Hopefully, you'll never have to pull the trigger on these plans, but it's helpful to have them, to know what you'd do.' Identify one move. You cannot control stock prices or whether the economy will tip into a recession. So focus on what you can control, especially actions that could improve your financial situation in a downturn. Take spending. 'If you don't have enough cash set aside to cover your expenses for three to six months in case you're laid off, you should be looking aggressively to cut back discretionary spending and get that emergency savings built,' Ms. Lester said. 'You may feel like every nickel is already allocated, but for anybody who is getting takeout, traveling or who has more than zero subscription services, you can find places to cut back.' If you're worried you might lose your job in a recession, try to make yourself more indispensable by learning a new skill that is in high demand in your field. Or warm up your professional network by connecting with other people in your industry or develop a side hustle for extra income, Dr. Klontz suggested. Finding other places in your life to assert control that have nothing to do with money can help calm financial anxiety, too — and provide a welcome distraction. Ms. Lester, for example, recently found respite from the market chaos by tidying her home office. Tending your garden, organizing family photos or taking a daily walk are activities that may give you a sense of mastery over your environment when your finances feel outside of your control. 'As soon as you start creating more order, even a little bit of control somewhere, you feel so much better,' Ms. Lester said. Practice self-compassion. Sometimes compounding the financial anxiety is a sense that you may be partly to blame for your money struggles. 'At times like these, people often see financial failures as personal failures: The market is crashing, and now I'm not going to have enough money because I didn't make enough or save enough or I didn't work hard enough or I'm not good enough at managing this stuff,' Dr. McCoy of Kansas State said. She encourages a gentle reframing: 'Tell yourself, 'I did the best with what I knew at the time.'' Ms. Lester said she also saw this pattern of self-blame frequently. 'Understanding that we are hard-wired to behave certain ways under certain circumstances, and forgiving yourself, is really important,' she said. 'Understand that there are many things you can do from this point forward to help yourself financially, take a deep breath, then take that next step.'
