As they often say, money doesn’t buy happiness, but what happens when your money doesn’t bring you any feeling of contentment, even when you’re financially comfortable?
Take James, for example. James is 45 years old and describes himself as financially responsible. He has an emergency fund that would cover three months of his family’s expenses, $250K in his IRA and is on track to pay off his mortgage right before he hits retirement age. He and his wife also own their two cars outright and have no consumer debt.
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Yet in spite of this sound financial footing, James constantly feels stressed about his family’s money decisions in the past. James earns a decent salary, but he often wonders if it was a mistake for his wife to become a stay-at-home mother during their children’s early years. He also knows he could have contributed more to his retirement savings, but financial pressures while his children were young kept him from saving as much as he would have liked.
Is James’s situation unique?
While James describes himself as “gripped with regret” over his past lifestyle choices, his worries are quite common. A study from Capital One, in partnership with The Decision Lab, found that 77% of Americans reported that their financial situation has them feeling anxious, while 68% worry about not having enough money to retire.
James has his worries, but many of his fellow Americans find themselves on much more precarious financial footing. For example, only 46% of Americans have an emergency fund that can cover three months’ worth of expenses.
Moreover, according to Ramsey Solutions, the average household carries $19,865 in credit card debt, and a further $36,832 in car loans. Meanwhile, only 65% of Americans own their homes, according to the Census Bureau’s quarterly report for Q1 2025.
Still, James worries that it’s too late for his wife to find a decent job with a comfortable salary, and that he will struggle to provide for his family in the future.
Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
How to manage financial anxiety
If you feel like financial anxiety is taking control of your life, there are several steps you can take to feel more grounded and confident with your finances.
Consult a financial advisor
If you’re in good shape financially but still feel worried about money, it may be helpful to have a professional review of your financial progress. Consider speaking with a fiduciary financial advisor who can give you a professional, bias-free account of your retirement plan and financial goals.
An advisor can help you feel more confident about your financial path by reviewing your budget, emergency fund and investment portfolio while also offering advice on how you can improve.
Whether you need to improve your financial situation or you’re on track for a healthy retirement, an advisor can help you create manageable goals that can give you a feeling of control over your money and your future.
Create a budget
James could help to ease his worried mind by carefully creating a budget for his household. By focusing on everyday expenses and cutting costs wherever possible, James can free up some more cash that he can then invest in his family’s future.
If you too are worried about your financial future, creating a budget and investing what you save is a great way to help assuage your money worries. Whenever the anxiety over your future finances crops up, you can feel a little bit better knowing that you’re budgeting well and investing your savings for your golden years.
When creating a budget, the first step should be to take a good look at your current numbers. “You have to know what you’re working with before you can start working toward anything,” wrote Kara Perez in an article for Moneywise.
For more help on creating a budget, check out Perez’s advice on how to make a budget that works.
Create an emergency fund
One very smart money move that James made was building an emergency fund that can cover three months’ worth of his family’s expenses.
An emergency fund is a vital stash of money that can come in handy when unexpected expenditures arise, or when you lose your job and temporarily stop earning money. Life happens, and things like emergency car repairs or replacing a broken water heater can pop up at any time.
The last thing anyone wants is an emergency expense that pushes them into debt or forces them to dip into their savings. Credit cards are great, but using them to get yourself out of an emergency can be costly, and it’s hard to save for your future when your money is tied up paying off debts.
Start investing early
It’s no secret that the sooner you start investing, the more well off you’re going to be when retirement comes around. For many Americans, retirement may seem decades away, but saving for it as early as possible can be incredibly beneficial for your retirement finances.
The money that you invest benefits from compounding returns, which means your money grows over time — and the longer the period that your money sits in investments, the more growth you’ll see with your portfolio.
If young Americans can start investing in their 20s, they’d be setting themselves up to take advantage of what’s likely the most valuable asset out there: time. Investing as early as possible is a great way to unlock the complete potential of compounding returns.
Unfortunately, many Americans who struggle with financial anxiety could be plagued by these worries for quite some time. Even if you consider yourself well-off, factors such as inflation and economic uncertainty due to President Trump’s controversial trade policies could create cause for concern. And if you’re already anxious about your future finances, these factors could greatly exacerbate your worries.
That’s why peace of mind is so important. If you follow the tips above, you can remind yourself that you’re doing everything you can to boost your future finances whenever your money worries pop up. And while that financial anxiety may never disappear, it can be greatly reduced just by knowing that you’re putting your best foot forward today for a better tomorrow.
What to read next
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- Here are the 6 levels of wealth for retirement-age Americans — are you near the top or bottom of the pyramid?
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
- How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
