Feeling Stressed About the Economy Lately? You Are Not Alone.

Four Actions You Can Take Today to Take Control of Your Finances & Prepare for Economic Turbulence

By Kimberly Esse, Questis Financial Coach

As a financial coach, I stay informed about economic news to better support my clients. While money is personal, economic news is often a primary source of stress. With the constant news cycle, it’s easier than ever to feel overwhelmed by global events and their impact on our finances. However, while we can’t control every factor, we can take steps to prepare and reduce financial stress. Here are four actions you can take today to strengthen your financial stability in uncertain times.

1. Prioritize Saving Like Future You is Current You

Uncertain times call for a stronger financial cushion. Even if it’s just a few dollars per paycheck, prioritize saving. If you’re experiencing financial hardship and struggling to cover monthly expenses, resources like 211.org can help you find local assistance.

Building an emergency fund is crucial. High-yield savings accounts currently offer rates above 3%, making them a great place to park your emergency savings. According to the Bureau of Labor Statistics, it takes an average of 21.3 weeks (about five months) to find a new job after becoming unemployed. Ideally, aim to save:

• One month’s expenses if you have high-interest debt
• 3-6 months’ expenses if you’re debt-free

If saving a large sum feels overwhelming, start small:

• First goal: $500
• Next: $1,000
• Then: One month’s basic expenses

Every dollar saved is one less financial stressor in uncertain times.

2. Know Your Monthly Expense Needs

To determine how much to save, you need to know your monthly expenses. Categorize them into:

• Fixed Expenses: Housing, car payments, insurance, utilities, phone bills, and minimum loan payments.
• Variable Expenses: Groceries, medical costs, transportation, and personal care.

Exclude non-essential expenses like dining out and subscription services when calculating your emergency savings goal. Once high-interest debt is paid off, aim to save 3-6 months’ worth of necessary expenses.

3. Identify Where You Can Cut Costs

Review your budget and cut unnecessary spending, such as:

• Dining out and takeout
• Subscription streaming and delivery services
• Personal care luxuries
• Unnecessary travel

This isn’t about deprivation—it’s about making short-term sacrifices for long-term financial security. Adjusting spending habits takes time, so be patient with yourself.

4. Prioritize Your Mental Health

Financial stress can take a toll on mental health. Adrenaline from stress impairs decision-making, so take steps to stay grounded:

• Limit news consumption: Set designated times to check economic updates.
• Schedule stress-release time: Allow yourself a daily window to acknowledge financial worries, then move forward.
• Seek support: A financial coach can help you evaluate goals and build a plan.

Take Control of Your Financial Future

Economic uncertainty doesn’t have to mean financial chaos. By saving, budgeting wisely, cutting unnecessary expenses, and managing stress, you can feel more in control. If you need help setting financial goals, consider working with a financial coach. Prioritizing your financial and mental well-being will better position you for whatever comes next. And of course, talk to your HR team about a solid financial wellness benefit like Questis that includes coaching!

Stay informed, stay prepared, and take care of yourself!