October, 2010

Learn to cope with financial stress
These are stressful times. Economic uncertainty has touched everything from corporate earnings to pension plans to the livelihoods of American workers. People are worried about the stability of their retirement plans, company layoffs, and dwindling home values. In one study, eight out of ten people cited the economy as a significant source of turmoil in their personal lives. Another survey found that a majority of Americans are dealing with high or moderate levels of financial stress.

Because financial stress is a normal part of life for most people, learning to cope with money worries is important — vital, in fact — for maintaining positive relationships, job productivity, and personal health. Fortunately, proven strategies for coping with stress (and financial stress in particular) can provide relief for a wide variety of people. If you're dealing with excessive anxiety about your finances, consider implementing the following three policies:

Don't sweat things you can't control. If you've been laid off from your job, for example, don't spend time mulling over the idiosyncrasies of your old boss, the shortcomings of the guy who took your job, or anything else that's beyond your ability to change. Putting aside those emotions may be difficult, but looking ahead can relieve stress now. You might need to expand your job search, network with long-forgotten colleagues, even retool for a new career. Don't waste your energy by dwelling on the past.
Take charge. When dealing with personal finances, uncertainty can generate stress. Preparing a written budget can bring your money worries into focus and provide a starting point for action. You may find that cutting out a few unnecessary luxuries can provide breathing room. Getting the debt monkey off your back may take time, but watching your credit card balances decline for a few months can provide relief and hope for the future.
Broaden your perspective. Remember that life is a lot more than money. If you're burdened with financial worries, take time to consider the many blessings you do enjoy: health, family, nature, whatever gives you pleasure and a sense of well-being apart from your checkbook. Relax and smell the daisies.
Sometimes talking to a trusted advisor also helps. If you'd like additional suggestions, give us a call at (949) 453-1521 or email us at taxalert@maxwellcompany.com.