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Mastering financial stress | Tips for financial well-being

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By Capital Partners Wealth Planning

Anxiety is the biggest detractor from overall emotional well-being and financial stress can be a key contributing cause. The NAB Household Financial Stress Index looks at the role our finances have on our overall well-being – its conclusion is significant!

Our team supports hundreds of families to achieve true prosperity via holistic wealth management. Here are four tips to help you manage financial stress – even when markets look wobbly. 

1. Recognising the emotional connotations

Our relationship with money can be emotional and even complicated!

This dynamic may have roots traced back to childhood. Since money is integral to our survival, any perceived instability can trigger our innate ‘fight-flight-or-freeze’ responses.

It is pivotal to understand that your brain is always assessing risks.

Uncertainty is often equated to potential peril. Economic unpredictabilities, such as fluctuating inflation or interest rates, may precipitate feelings of anxiety and fear. It’s important to distinguish between genuine financial threats and mere perceptions, ensuring your emotional responses are well-calibrated.

2. The power of a positive mindset

In an age where information is ever-present, you might inadvertently immerse yourself in a torrent of worrisome financial news.

In such instances, try to employ the same tactics you might use during other stressful periods— perhaps seeking solace in nature, indulging in meditation, or conversing with a confidant.

Embarking on your day with a tranquil morning ritual can be powerful. Rather than immediately delving into the day’s news or electronic notifications, which might exacerbate stress, you might opt for rejuvenating activities like stretching or an invigorating morning walk. Remember, financial clarity is often obscured by stress; tranquility can aid in discernment.

3. Celebrate the small wins

It’s important to find a sustainable medium between proactivity and taking time out. Focus on what you can control. Periodically review your expenditures, identify potential savings, and even contemplate ways to enhance your financial position. Whether it’s navigating tax strategies or re-visiting your investment approach, every step counts.

4. Adopt a long-term perspective

Financial markets aren’t linear. Through crashes and corrections, it’s essential to remember that disruptions will eventually stabilize. It just takes time. Rather than focus on the day-to-day, adopt a long-term perspective. Practice this by identifying your long-term goals. Where do you want to be in five years’ time? Investment planning without speculation is the key ‘secret’ to creating your prosperous financial future. Discover an investment approach built on patience and discipline. 

Seek expertise when needed

Should you find yourself in turbulent financial waters, remember you needn’t navigate it alone. Various professionals, from financial advisers, accountants or financial counselors, are equipped to assist.

How do we help?

The information provided on this site is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different and you should seek advice from a financial planner who can consider if these strategies and products are right for you.

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