Planning ahead is the best way to alleviate the financial stress and anxiety many Americans have faced during the COVID-19 pandemic, according to a panel of financial experts who attended Investopedia's "Your Money, Your Health" virtual conference.
The second panel of the event, where Investopedia Editor-in-Chief Caleb Silver was joined by Amy Morlin, Editor-in-Chief of Verywell Mind; life development coach Mike Bayer; George M. Blount, financial therapist; and financial planner Carolyn McClanahan on the topic of financial and mental stress management, which is currently a major concern for many Americans. The main takeaway was the importance of discipline, taking your time and having a clear plan so that we are always prepared to deal with whatever life throws at us.
KEY FINDINGS
In a panel on financial and mental stress, experts highlighted the importance of planning ahead to reduce anxiety.
The panellists focused on staying disciplined, taking their time with decisions, and having a clear plan to deal with what life throws at us.
Meditation has also been cited as a helpful stress management tool.
"It's always important that you have some kind of policy," said Blount, a financial therapist and founder of nBalance Financial. “At this point in our lives, it’s appropriate to say, ‘Okay, in case of an emergency, I’m going to do this’ or ‘In case of a job loss, I’m going to do this. ' Don't wait for it to happen and then try to respond as quickly as possible at the event. If you have time and if you just find it easier to write down these things, come up with certain rules for how you feel about life events, so that when it happens , it won't be a shock to you."
Blount went deeper into the types of financial contingency plans that are useful to have in place. “So if I have my 'lost job' policy in place, when this happens I will have an immediate way to initiate some course of action that will keep me from moving too fast. I need some kind of response that allows me to slow down, understand what's going on, find the resources I need to feel better about what's going on, and then move forward."
Carolyn McClanahan, a physician and financial planner, echoed this theory, urging people to think carefully about their goals, be prepared for difficult events, and get their finances in order before they are caught off guard. “When you think about things like losing your job or being diagnosed with a serious illness, if you develop dementia, what are you going to do? You have plans in advance that you have discussed with your family,” she said. “When something bad happens, you are ready. It reduces the level of anxiety so much.”
“Many people think of financial planning as an investment. Real financial planning… it is, first of all, an analysis of the goals of our clients, as well as assistance in their development… are you happy now, and if not, why not?” McClanahan continued. “This could include career planning, this could include helping them divide their spending into what really matters to them, needs and wants, and teaching them how to spend wisely and not just spend looking for something. . It all starts with finding out their purpose.”
McClanahan focused on the long-term benefits of having a sound financial plan. “Once you reconcile people with where they are financially, they often stop spending money looking to buy these things and their financial situation becomes much more secure,” she said.
The financial planner also gave some advice to people who are currently stranded. “Determine what your needs and your desires are, and get rid of those desires if you are really in financial instability at the moment. And then, if you have the opportunity, reach out to the people you owe money to and see if there are any other programs available," McClanahan advised.
She focused on student loans, which is probably a concern for a lot of people. “There are programs that help with student loans, especially for low-income people, and then find out what services are available. There are a lot of local and state programs that people didn't know about, so do your research and find out what support is available to you." Special guest panellists agreed that talking to an expert is often worth the money, but added that there are also many great free resources.
Panellists also mentioned meditation as a useful tool for managing stress. "Meditation isloose clothing and everyone has to determine what they fit into,” said Life Development Coach Mike Byer. “Some people need to light a few candles and swirl the bowl, while others just need to sit still and breathe. But meditation is really about breathing, going into the moment, focusing, and simply allowing your body to return to a state of stillness. place, because when we allow ourselves to get to this place of rest, we make decisions that are more authentic, that are less emotional - they are more balanced, they are more like us.