Financial Planning

Are You Losing Sleep Over Money?

Here’s what you can do…

Everyone knows the benefits of a good night's sleep. But when your mind is on money, sometimes it's hard to sink into slumber. In fact, nearly two-thirds of Americans occasionally experience sleep problems due to financial woes.

Perhaps your concerns are related to the COVID-19 pandemic or perhaps they’re centered around other situations. Whatever your worry, it’s time to address your situation and get back to sleep!

The cost of health care ranks among the top of the list with more than a third of people surveyed saying their fretting keeps them from snoozing.

Saving for retirement is another top disturber of sleep: 37%. Student debt is another top contender at around a third. About a quarter of Americans are wired during the night over mortgage and rent. Nearly a quarter of Americans stay up late over credit card debt.

If only you had a couple million dollars in the bank, life would be worry free and nights would be filled with golden slumber, right? Not so fast.

Even very wealthy investors - those with a net worth between $5 million and $25 million - are worried about not having enough money to make it through their retirement years.

So, what can you do to alleviate the stress and get some sleep? Here are some tips that may help make you more money secure - and rested:

Don't worry, be prepared: Psychologists say worrying is a natural emotion. It equips us for an uncertain future; worry should work as a motivator. It becomes unhealthy, and steals our sweet dreams, when it is taken to extremes and when we don't respond to it properly.

Preparing ourselves will help alleviate some of the stress. Worry sometimes arises when we approach different stages in life, such as retirement or having children, and we keep imagining the worst-case scenario.

A little research into our options and choices - and developing a financial strategy to achieve our goals - will make for better slumber.

Get professional help: Sometimes life's challenges can be overwhelming, especially when they involve finances: rising debt, shaky retirement planning, a lack of budgeting. Getting advice from a financial professional can significantly ease the stress of not knowing what to do or how to do it.

Professionals can provide insight and present options to help you formulate an action plan.

Ignore the chatter: Market fluctuations are normal. Stocks rise, stocks fall. It's our response to the market that matters.

If you have a long-term investment strategy linked to your financial goals, you shouldn't have to worry. Short-term movements in the market should have little impact on your investment plan.

If you haven't already, review your investment strategy with a financial professional, make any necessary changes, then rest easier.

Track your cash: Most Americans - 2 out of 3 - don't have a budget or, if they do, don't follow it, which can set them up for quite a few sleepless nights when unexpected financial surprises come to visit.

Online or software budgeting programs and apps enable you to import bills, credit cards, and other financial information into easily managed budget systems to monitor income and expenses. Gaining an understanding of how you spend your money allows you to make adjustments or make changes to help you reach your goals.

You don't have to let worry disrupt your sleep. A few easy steps may help make the journey to your financial goals smoother and faster, and your sleep sounder.

If money woes are keeping you awake, give us a call. We'd be happy to meet with you and review your situation.

Sources:

www.creditcards.com/credit-card-news/losing-sleep-money-worries-poll.php

www.prnewswire.com/news-releases/65-losing-sleep-over-money-health-care-costs-lead-list-of-worries-for-first-time-300442615.html

www.theglobeandmail.com/globe-investor/globe-wealth/rich-people-worry-about-nest-eggs-too-but-for-different-reasons/article35664441/

www.psychologytoday.com/us/blog/the-power-prime/201304/what-me-worry-why-worrying-does-more-harm-good

www.theatlantic.com/business/archive/2018/02/stock-market-dow-volatility/552452/

 https://howmuch.net/articles/how-americans-spend-money-2017

 www.investopedia.com/personal-finance/best-budgeting-software/


Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Allos Investment Advisors, LLC.

The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.

Published for the blog on July 7, 2020 by Allos Investment Advisors, LLC.

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