How a financial professional can help you manage stress

Looking after your finances isn’t always easy. On top of the stress of managing your bills while saving for the future, we know that financial stress also has a large impact on your emotional and physical wellness. Self-reported mental health has declined by 12% in the past five years, leaving many people feeling unsure and overwhelmed.¹

If you’re feeling the impacts of financial stress, talking to a financial professional can help. In fact, the majority of financially confident US workers engage with a financial professional.² They can help you avoid making decisions that may be detrimental to your long-term goals, especially during high-stress financial conditions.

Here are three roles a financial professional can play to help alleviate some of your stress:

1. A behavioral coach to keep you in check

One of financial professionals’ greatest strengths is their ability to remain calm during financial turmoil, acting as a behavioral coach to keep you from making hasty decisions.

Individuals who work with a financial professional tend to have a written financial strategy, including a custom investment portfolio. This reflects your values, adjusts to your goals, and keeps you centered on long-term objectives, preventing you from being pulled in multiple directions by changing economic conditions.³

Believe it or not, the ability to weather the stress of financial disruption depends more on your behaviors than your income. Solid financial habits — such as regularly contributing to savings and seeking financial guidance — can have up to a 30% greater influence on an individual’s happiness and confidence than income.⁴

2. A professional to celebrate your wins with you

Not only are financial professionals a supportive resource during tough times, but they can also be an asset during the good times.

When you get a big raise at work, the emotional payoff is straightforward. But the economic considerations can be complex. Do you use it to whittle down student loans? Sock it into savings? Or treat yourself to something special? By helping you plan for taxes and strategically budgeting the increased income, a financial professional can help you do all of the above with no guilt.

Another common time of financial stress is when you’re preparing for parenthood. This happy milestone in your life also comes with more financial responsibilities. A financial professional can help take this into account along with all your other goals to help craft a financial strategy that takes care of your family and fulfills your personal long-term goals.

3. A guide to prepare you for retirement

Working with a financial professional can help you avoid panic, control your emotions, and make confident decisions in the face of economic uncertainty. It can translate to a 3% higher return on average for investors who use financial professionals than for those who go the DIY route.⁵ Over a lifetime, that can make a significant difference in wealth accumulation for retirement.

Financial confidence and emotional confidence are inextricably linked and critical to how people feel overall about their sense of financial wellness. So, whether you’re expanding your family or preparing for retirement, it’s never too late to engage a financial professional to help smooth the way.