10 Ways to Cope with Money Stress During Tough Economic Times

Face it: financial anxiety is real. especially when the economy appears to be riding a roller coaster with more downturns than upturns. Inflation, layoffs, rising interest rates, and financial uncertainty have become the background noise of our daily lives. Whether you're watching the news or just trying to fill up your gas tank, it’s hard not to feel that creeping sense of financial stress.

But here's the thing: you're not alone, and even in a world that seems financially chaotic, there are practical ways to alleviate your financial anxiety.

1. Don't Ignore Your Feelings; Acknowledge Them

Anxiety about money isn't just "in your head." Physical symptoms include a tight chest, racing heart, and insomnia. The first step is to acknowledge your emotions without judgment. Feeling overwhelmed is ok. Because you can't fix what you're pretending doesn't exist, denial only makes stress worse.

Try writing down your feelings in a journal, talking to a trusted person, or just saying, "I'm feeling anxious about money right now." This simple act of acknowledgment can help reduce the power those feelings have over you.

2. Eliminate The Talk About Money

Yes, staying informed is important—but doomscrolling financial headlines for hours is not helpful. News outlets thrive on urgency and fear. More people click on headlines that are more dramatic.

Set limits if reading the news makes your anxiety worse. Try limiting yourself to 10–15 minutes a day of financial news consumption. Rather than sensational sources, choose calm, factual ones. Unfollow accounts that make you feel worse rather than better to keep your peace.

3. Audit Your Current Financial Situation

Although it might seem counterintuitive, there are times when our anxiety is greater than the actual situation. Avoidance breeds fear. Therefore, instead of avoiding your credit card balances or bank statements, face them head-on.

Create a clear picture of:

• Your income and expenses
• Any debts you owe
• Your savings and assets

This doesn’t have to be fancy. A spreadsheet or budgeting app will do. The objective is not to make you feel bad; rather, it is to give yourself a base from which to build. What you can't see, you can't change.

4. Build a Budget That Feels Empowering, Not Restrictive

A budget shouldn't feel like a punishment; it should work for you. When done correctly, budgeting is not always about saying "no." It all comes down to telling your money where to go.

Use the 50/30/20 rule as a starting point:

• 50% of your income for needs (rent, bills, groceries)
• 30% for wants (dining out, subscriptions, hobbies)
• 20% for savings and debt repayment

Customize it based on your life and goals. If things are tight, look for small tweaks—like cancelling unused subscriptions or negotiating bills. Small changes add up.

5. Start an Emergency Fund—Even If It’s Tiny

The fear of the unknown is one of the main causes of financial anxiety. What happens if the car breaks down? What if I lose my job?

You can rest assured of your finances by having an emergency fund. Even if you can only save $5 or $10 a week, that’s okay. Saving money, even in small amounts, gives you hope and control.

You might want to think about putting your emergency fund in a separate high-yield savings account where it won't be easily seen.

6. Focus on What You Can Control

You can’t control the stock market, inflation, or global economics. But you can control your spending habits, savings strategies, and your mindset.

Try shifting your energy from “What if everything goes wrong?” to “What can I do today to feel a little more secure?”

This could look like:

• Cooking at home more often
• Finding a side hustle or freelance gig
• Learning a new skill to improve your job prospects

Progress, not perfection, is the goal.

7. Practice Mindful Spending

It's easy to spend impulsively as a form of temporary relief when we're anxious. Although doing a little online shopping can make you feel good right away, it often makes you feel more stressed out later.

Try following a 24-hour rule before buying anything that isn't absolutely necessary. Ask yourself:

• Do I really need this?
• Will this bring lasting value?
• Am I buying this to avoid uncomfortable feelings?

Mindful spending leads to more intentional, fulfilling financial choices.

8. Talk to a Financial Therapist or Coach

It's okay if the anxiety gets really bad at times. Emotions, identity, self-worth, and childhood experiences are all linked to money. If your anxiety is impacting your mental health or daily functioning, it may help to speak with a financial therapist or coach.

You can get help from these professionals to figure out how you feel about money, understand how you spend money, and develop better habits for the future.

9. Celebrate Small Wins

This month, did you make your budget? Paid off a small credit card balance? Cooked at home for a week instead of eating out?

Celebrate that.

Even if your financial journey is moving slowly, you are still making progress. Small wins build momentum, confidence, and a sense of agency. When you feel like you're making progress, money anxiety loses its power.

10. Remember: Economic Cycles Are Just That—Cycles

History shows that economies go through ups and downs. End of recessions. Markets recover. Inflation cools. It’s part of the rhythm. It may be difficult now, but it will not always be this way.

Remind yourself: you’ve made it through hard things before, and you will again.

Money anxiety can be tough, but you're tougher. You can find calm in the chaos with a little structure, support, and self-compassion. To begin developing a sense of financial calm, you do not need to wait for the economy to be "perfect." Start where you are, use what you have, and take it one step at a time.

You’ve got this.