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\n Money stress exists at all socioeconomic levels. It causes prolonged and serious fights in relationships, is linked to insomnia<\/a> and stomach ulcers<\/a>, and acts as a major stressor<\/a> for most Americans, according to Dr. Megan McCoy, a financial therapist and associate professor at Kansas State University.\n <\/p>\n \n And with the uncertainty surrounding the impacts of tariffs<\/a> on prices and a job market<\/a> that seems to be running out of steam, it makes sense that financial panic may be especially high and emotional well-being particularly low.\n <\/p>\n \n The best time to make financial decisions is before you are in a bad situation, when you can look at your priorities, needs and realities and build a plan that is realistic and resilient, added Elizabeth Husserl, a financial adviser and wealth manager in the San Francisco Bay Area.\n <\/p>\n \n \u201cWe\u2019re holding our breath for something bad to happen tomorrow,\u201d McCoy said. \u201cI hope readers recognize that if they are one of us who are holding their breath, first of all, it\u2019s normal and valid because so many other people are feeling that way, and also to take a deep breath and try to figure out how to focus more on their current situation rather than what may happen.\u201d\n <\/p>\n \n Shawna Humbert promised herself that she was never going to live like she did as a kid, fearing the electricity would be cut off when the bill wasn\u2019t paid.\n <\/p>\n \n But in 2018, she had left her job at a bank to join the police academy before deciding a law enforcement career wasn\u2019t for her. She went from bringing in thousands of dollars a month to nothing, and growing up without financial literacy in her family, she had nothing saved, she said.\n <\/p>\n \n And as she worried over whether she could afford to turn on the air-conditioning or go out with her friends, she felt just like that little girl again, Humbert said.\n <\/p>\n \n The heartache, fear and uncertainty that Humbert faced isn\u2019t unusual when it comes to money.\n <\/p>\n \n Of course, money is emotional. Your financial status influences your access to needs such as clothing, food, shelter and medicine and can be a resource for emotional needs such as belonging, pleasure and rest, Husserl said.\n <\/p>\n \n One problem is the scarcity mindset, or a belief that resources are limited. It\u2019s particularly hard to make sound financial decisions that can help you get your needs met down the road when you are in the fear or panic mode, McCoy said.\n <\/p>\n \n \u201cThe scarcity mindset makes us more hyperfocused on immediate needs, and it makes it harder to think about the long-term goals,\u201d she said. \u201cWe get this tunnel vision of avoiding the scarcity we once experienced, causing a lot of reactive behavior, because we\u2019re just trying to make sure now we\u2019re OK.\u201d\n <\/p>\n \n This way of thinking also carries a lot of shame, McCoy said.\n <\/p>\n \n \u201cFear and shame are terrible financial advisers. Emotional clarity leads to financial clarity,\u201d added Husserl, author of \u201cThe Power of Enough<\/a>: Finding Joy in Your Relationship With Money.\u201d\n <\/p>\n \n Before making any money decisions, it\u2019s essential to address the emotional side first, she said.\n <\/p>\n \n You, and your partner if you have one, can sit down and write out your \u201cmoney story,\u201d Husserl said. What are the major experiences you had around money growing up? How does that impact the way you approach your financial life now?\n <\/p>\n \n And when you start to feel panic creep up, figure out which emotions are underneath that \u2013\u2013 and don\u2019t be afraid to sit with those feelings and really recognize what fears you are holding onto, McCoy said.\n <\/p>\n \n It may feel like you need to make a change in response to the uncomfortable feelings, but you are often better served waiting until you have worked through the feelings and can make decisions from a more even-keeled state of mind, she added.\n <\/p>\n \n People often hear the word budget and think of dieting \u2013\u2013 punishment, restriction and merciless cost cutting.\n <\/p>\n \n Instead, Husserl recommends a spending plan that focuses on building your financial resilience in both easy and difficult times.\n <\/p>\n \n When building your budget or spending plan, start on the emotional side of things once again, said Dr. Sonya Lutter, professor of practice and director of financial health and wellness at Texas Tech University.\n <\/p>\n \n What are the three to five things that are most important to you? Do your top priorities include family, health, novelty or security? Once you know what matters to you, you can look at how you are already spending your money and see whether there are ways you can align the two, she said.\n <\/p>\n \n Part of building resilience also means looking at which parts of your spending can be turned up or down depending on your financial situation of the moment and which are valuable enough to remain consistent, Husserl said.\n <\/p>\n \n For example, she and her family members know that when things are more comfortable financially, they might spend more on entertainment subscriptions or takeout to add a little ease and enjoyment into their day. But if money is tighter, they find shows together on one streaming service or make meal plans for the week, she said.\n <\/p>\n \n On the other hand, Zumba classes keep enjoyable exercise a regular part of her life, so she works harder to retain that as a line item of her spending plan regardless, Husserl added.\n <\/p>\n \n Money can be an effective way to get one\u2019s needs met, but it\u2019s helpful to diversify how you find feelings of satisfaction, McCoy said.\n <\/p>\n \n Could making food at home give you a sense of satisfaction that\u2019s similar to going out for a nice meal? Would longer hugs with your spouse provide the comforting touch you experience when paying for a massage? Creature comforts are still important, but find many ways to meet those needs so that you don\u2019t feel too tied to your spending habits, she said.\n <\/p>\n \n A scarcity mindset also makes it hard to take things step-by-step, which is crucial to making big and sustainable financial changes, McCoy said.\n <\/p>\n \n For her, a six-figure student debt felt impossible to look at as monthly payments, she said. Instead, everything she did was under this dark cloud of an impossibly large number.\n <\/p>\n \n Usually, she would be left feeling guilty and overwhelmed, McCoy added.\n <\/p>\n \n Instead, small and manageable steps that she built over time helped her feel more empowered and motivated.\n <\/p>\n \n Seattle-based money expert Tori Dunlap recommends setting a regular \u201cmoney date,\u201d or a scheduled check-in that you enjoy \u2014 maybe light your favorite candle or make yourself a delicious drink before you settle in.\n <\/p>\n \n Go over where you are financially, automate your savings or bill payments, and take some small steps by canceling a subscription or just texting a friend to let them know you are having a hard time, she added.\n <\/p>\n \n \u201cWe\u2019ve been taught to carry shame around our finances, especially as women. But shame is not a financial strategy,\u201d Dunlap said in an email. \u201cThe more we normalize these conversations, the easier it becomes to move forward \u2014 even when things feel hard.\u201d\n <\/p>\n \n It\u2019s easy to think that you are the only one struggling financially or that those in your community have so much more than you do, but starting the conversation with those you trust may show you that most people are facing similar stressors and constraints, Lutter said.\n <\/p>\n![\"It](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/gettyimages-1403987058.jpg\")
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