Financial Anxiety Drops in Half for Those Who Work With Advisors

Some people are just more naturally anxious than others. But if you’re someone who tends to experience financial anxiety, you know how troubling it can be.

Financial anxiety can take on different forms. It can mean constantly worrying about your finances. It can mean refusing to look at bills or review your bank and credit card accounts because you’re worried about what the numbers will look like.

There are different reasons why you may feeling financially anxious. It could be that:

• You’re behind on retirement savings and don’t see how you’ll catch
• You don’t have an emergency fund, or one that’s large enough
• You have a lot of debt that’s hard to keep up with
• You’re worried about job security
• You don’t consider yourself financially literate and don’t know how to manage your paycheck

All of these feelings are completely normal. But there may be a pretty easy way to get help addressing them.

The benefits of working with a financial advisor

If you’re feeling financially anxious, it could pay to get a financial advisor in your corner. In a recent survey by Northwestern Mutual, 29% of respondents without a financial advisor said they feel financially secure. But that figure jumped to 64% of respondents with an advisor.

Some of the benefits of working with a financial advisor include:

• Getting help budgeting and managing your spending
• Taking control of debt
• Getting advice on how to save and invest to meet your goals

Just knowing that there’s a financial professional in your corner to give you customized advice could change your outlook on money for the better. So it pays to talk to a few different advisors and try to find the right fit.

What to look for in a financial advisor

There are certain qualities you should look for in a financial advisor:

• Experience
• Licenses and certifications
• Clear fees
• Great communication

But there are two specific things to look for that are perhaps the most important.

First, you ideally want your financial advisor to be a fiduciary, which means they’re required to act in your best financial interest at all times. If your financial advisor is not a fiduciary, it means they only have to hold to the suitability standard, which requires them to recommend investments that are suitable for you – but not necessarily the best ones.

Secondly, you need to find a financial advisor who you feel gets you — especially if you tend to have financial anxiety. A good advisor is someone who understands your concerns and goals, and who seems able to help you address both in a calm, non-judgmental manner.

This isn’t to say that having a financial advisor means you’ll never find yourself worrying about money. If your car needs a $4,000 repair out of the blue, that’s the sort of thing that would stress anyone out — advisor or not.

Generally speaking, though, having a financial advisor in your corner could work wonders for your overall peace of mind, so it’s worth giving one a shot.