Tips to ease money anxiety when the economy is stressing you out

Tariffs and a global trade war, which could raise prices and discourage consumer and corporate spending, have economists raising their odds of an economic downturn in 2025.

- Diane Harris

Tariffs and a global trade war, which could raise prices and discourage consumer and corporate spending, have economists raising their odds of an economic downturn in 2025. Coupled with wild swings in the stock market, it's no wonder that financial anxiety is spiking to new heights.

The danger is not just the financial anxiety, which has been linked to higher risk of various health problems, from depression to heart attacks. It is also that the pressure can drive you to take actions that could make your financial situation worse.

Here are five strategies that experts say will help you keep a cool head and protect your money when anxiety is heating up.

ADJUST YOUR PERSPECTIVE It is hard not to focus on the most recent hairpin turns of the stock market. But what happens to stock prices in a single week, month or even year will not matter in the long run to retirement savers, many of whom have decades before they stop working, said Dr Brad Klontz, a financial psychologist and author of the book Start Thinking Rich.

Even retirees often have an investment time frame that could span 20 or 30 years or more. From that perspective, stocks still look like a smart investment for long-term growth, particularly when paired with fixed-income assets for stability.