Since the new administration took office, the American economy has been anything but stable. Sweeping tariffs, volatile markets, and mass government layoffs have made financial stress a part of daily life for many households. Even for those who aren’t directly affected by job cuts or market dips, the constant news cycle and rising costs have left people on edge. The emotional weight of this uncertainty can feel overwhelming, especially when it threatens your well-being and lifestyle. Money is linked to our survival and so the threat of its absence can evoke almost primal fears in us.
Feeling anxious in the face of major economic changes is natural (particularly when their impact is unclear). But there are ways to manage that anxiety so that it doesn’t cloud your judgment or hijack your well-being.
The Difference Between Realistic Concerns Versus Catastrophising
Anxiety often stems from “what if” thinking. What if I lose my job? What if tariffs mean our costs will rise? What if the stock market crashes?
While it’s important to be informed, there’s a psychological distinction between being aware of potential risks and engaging in catastrophising—imagining improbable worst-case scenarios and treating them as inevitable. A headline about potential layoffs may in your mind turn into your job loss, an inability to pay the mortgage, lose your home, being destitute. Acknowledging your fears while also challenging them can help reduce the spiral. Ask yourself: “How likely is this chain of events? Am I imagining the worst possible scenario? Are there less catastrophic scenarios in which, even if you were to lose your job, you wouldn’t end up “on the streets”?
Focus on What You Can Control
This leads me to the next point. Remaining grounded in more realistic scenarios, you can start thinking about measures you can take to protect yourself from them. In other words, you can focus on what you can control. You could start building up your savings through some smart budgeting; or move savings to accounts that pay better interest; or develop another revenue stream (even if it’s selling used items on eBay). Refocusing on what’s within your sphere of influence is empowering and puts you in the driving seat (rather than feeling a victim to it all).
It is important that you don’t let panic drive rushed choices. Ask yourself whether you’re reacting or responding to market changes. You might want to speak with a financial advisor if you’re unsure—objective guidance can provide both clarity and calm.
And remember: few financial decisions come with a clear “right” answer. Often, it’s about trade-offs. Rather than striving for the perfect choice, ask: “What risks am I comfortable taking?”
Filter What You Read and Listen to
The constant stream of financial headlines, predictions, and opinion pieces can feel like drinking from a fire hose and often, the loudest voices are those stoking fear. In times like these, it’s important to differentiate between information and noise. Ask yourself if what you are reading is helping you understand what’s happening, or fuelling your panic. Try not to cling only to the alarming details, while ignoring caveats.
Just as important is how often you engage with this information. Setting boundaries around news and social media consumption—especially close to bedtime—can help you stay grounded and reduce anxiety spikes.
Tune Into Your Body’s Clues
Financial anxiety doesn’t just live in the mind; it shows up in our bodies too—often before we consciously realize we’re stressed. Clients often report symptoms like insomnia, headaches, digestive issues, and muscle tension. These are your body’s way of alerting you to emotional overload. This happens because under stress, our bodies produce cortisol and adrenaline—the fight-or-flight hormones which in small bursts help us manage threats but over time, chronic stress can lead to physical wear and tear.
If you’re noticing persistent fatigue, appetite changes, or disrupted sleep, it’s worth wondering whether there is a level of financial anxiety you are carrying beneath the surface and, left unaddressed, is taking a toll. Bringing it to consciousness can help you turn it into an action plan that improves your financial wellbeing because you put in measures that make you feel more in control and more resilient than putting it off and out of mind.
Avoid Unhelpful Coping Strategies
Anxiety can push us into extremes: some people become overly frugal, depriving themselves unnecessarily – their response to fear is hoarding money. Others respond with avoidance or even further spending, feeling hopeless and trying to self-soothe through purchases. Be mindful of your behaviours: avoidance, “doom spending,” and miserliness won’t improve your financial well-being.
A good way to do it is to set a regular “financial check-in” time—weekly or bi-weekly—to review finances calmly based on the new information. Neither over-reacting to every news article, nor ignoring when it’s too hard to face.
Practice Self-Care and Mindfulness
Financial stress can easily eclipse everything else. But neglecting your physical and emotional health won’t make the numbers in your account any better. It will, however, make you less resilient.
Create space for practices that calm your nervous system. Meditation can be helpful, especially before bed. Gentle exercise, journaling, or even taking a few deep breaths when your anxiety flares can help you reset. You don’t need hours—a few intentional moments can make a real difference.
Talk About It
Money anxiety can be isolating—but it doesn’t have to be. Talking about your concerns with a trusted friend, partner, or therapist can provide perspective and relief. You may even find that others share your worries, creating a sense of solidarity rather than shame.
Suppressing anxiety tends to amplify it. Giving your fears a voice allows you to see them more clearly—and manage them more effectively.
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Worry is unproductive but understandable in times like this. By distinguishing fear from fact, focusing on what you can influence, and taking care of your mental and physical health, you can navigate this period with greater resilience. Turn your anxieties about finances into something positive: a new plan, a list of actions you can take to build financial resilience or find out something new about financial management.
The future may still be uncertain—but that doesn’t mean you can’t feel more certain in yourself.