Americans aren’t sleeping all that well these days. Sixty-nine percent of people report occasionally losing shut-eye because they’re worried about something, according to a Bankrate survey. And 36% of those folks point to money as one of their primary concerns.
It’s not hard to understand why this is happening. According to a recent survey by Varo Money, 85% of American adults sometimes feel stressed about money—and 30% are stressed about it constantly. About 1 in 5 people are living paycheck to paycheck, and more than two-thirds reported having to tap savings to make ends meet until their next payday at least once in the last two years.
If you’re counting sheep due to financial concerns, experts have some advice to help you put your mind at ease:
Find your “why.” What specifically is keeping you up worrying? “Keep asking ‘why’ to find the root causes,” says Eric Roberge, a financial planner in Boston. “Once you can identify that, you can then consider a specific strategy to address whatever the issue is.” For instance, if you’re worried about running out of money, you might consider increasing your savings rate and contributing more to investments.
Take an inventory. Stress comes from fearing the unknown. Get familiar with your finances by tracking your spending, looking at your balance sheet and understanding how much money you actually have. “Understanding where your money goes each month is a great way to ground yourself in the reality of your situation,” Roberge says. “Simply being aware and mindful may alleviate stress because it’s no longer an unknown.”
Automate your finances. Can you set up a plan to automatically pay down your credit card debt by a certain amount each month? Or automate an amount that goes into savings once a week? “Whether systematically saving or paying down debt each month, setting up automatic transfers can help ensure the plan doesn’t get off track,” says Kristin McFarland, a financial planner in Boston. “And it can help alleviate some of the stress of constantly checking your accounts.”
Build an emergency fund. A lot of financial stress comes from worrying about unexpected expenses. What would you do if you were suddenly hit by a big medical bill or repair bill? “An emergency fund containing three to six months of living expenses will not only give you a financial cushion, but also peace of mind in an otherwise stressful situation,” says Lauren Rilling, a financial coach and founder of The Determined Dollar. “Keep this fund in a separate account from other savings, such as a money market fund, which will earn more interest than a traditional savings account.”
Use a budget. “With a budget, there’s no need to compulsively check your bank account balance,” Rilling says. “Budgeting is usually associated with not spending money, but in reality, it gives you freedom to spend within limits. When you know where your money is going, you regain control and you can relax.”
Reduce your news watching. The 24-hour news cycle makes it possible to watch breaking news—and news analysis—all the time. But more than half of Americans say that watching the news increases their stress. “There is always news out there to consume, so it will be there when you get back,” says Clint Camua, a financial planner in Los Angeles. “Go enjoy the outdoors, ride your bike, surf, run. Not only will these activities free your mind, they will also reduce stress.”
Volunteer. When you’re stressed, it can be hard to see outside of your own situation. “Donating your time to others in need will not only provide a worthwhile distraction from your own stress, it will help put it in perspective,” says Jennifer McDermott, consumer advocate for personal finance comparison website finder.com. “Whatever place you find yourself in, there will always be someone worse off. Remember that as you take proactive steps to better your situation.”
