The financial media (this publication excepted) is in overdrive, stoking fear and anxiety about navigating the banking crisis. When you read this, another event will probably be roiling the market. The media will urge investors to take immediate action.
Q1 2023 hedge fund letters, conferences and more
No matter how often you counsel clients to avoid the short-term “noise” and stay focused on long-term planning, this constant drumbeat of negative news creates financial stress, affecting their ability to make sound investment decisions.
Understanding the neuroscience of financial stress will help you support your clients and keep them from making emotional decisions that upend your careful planning.
What is financial stress?
Financial stress refers to the emotional and psychological impact of financial insecurity. It is widespread.
According to the American Psychological Association, 72% of adults sometimes feel stressed about money.
Financial stress ranks higher than concerns about work, the economy, family responsibility, and personal health.
The consequences of financial health include:
- Anger and irritability;
- Anxiety;
- Reduced motivation;
- Increased fatigue; and
- Depression
Financial stress is a barrier that “prevents people from living well and reaching their health and lifestyle goals.”
Read the full article here by Dan Solin, Advisor Perspectives.
