How to Reduce Money Anxiety—Compassionate Advice from a Finance Pro

Even in the best of times, managing personal finances can be daunting. When and how much should I save for retirement? How do I get out of debt? Does my budget make sense? What the heck is a 403(b)? But things can feel even more dire during life or career transitions, after unexpected expenses, or especially when there's a global financial downturn.

If you experience money anxiety, you're certainly not alone, especially right now.

Sometimes, money questions can feel so overwhelming that we avoid thinking about it, letting the bills pile up, or not checking our credit score. Sometimes the opposite happens—we can't stop worrying, and we feel stuck in making financial decisions for ourselves and our families. If you experience money anxiety, you're certainly not alone, especially right now when there's so much uncertainty and change in the economy. 

How can we dial down the anxiety meter so we can keep our heads and make wise money decisions? I talked to a money expert to find some answers.

And not just any money expert. I talked to Laura Adams, one of the nation’s leading personal finance and small business authorities. As an award-winning author, media spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers, listeners, and loyal fans benefit from her practical advice. She’s written multiple books, and the latest title is Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers. I love her work not only because she's got great practical advice, but also because she brings empathy and compassion to all her listeners and readers. Below is a lightly edited transcript of our conversation:

Jade Wu

Welcome to the show, Laura. We're so excited to have you with us.

Laura Adams

Thank you, Jade. It's really fun to be with you.

What are the most common money anxieties?

JW

What are the most common money anxieties that you hear about from people? And are there any ones lately that are particularly salient?

LA

I think a big [source of] anxiety is just not getting started early enough. I think a lot of people reach middle age, maybe even they approach retirement, and just feel like they haven't done a good enough job of saving. That's pretty common. Even people who've saved a lot will also feel anxious. So if you are starting earlier, I think that can give you a sense of peace and security that at least you have a plan in place.

And certainly, right now, people are anxious about burning through their savings, if they've lost their job, if...

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