4 Ways to Help Tame Financial Stress and Save for Retirement

Financial stress can be overwhelming and may negatively impact your retirement savings. Whether it’s feeling like you don’t earn enough, struggling with investment concepts, or having difficulty organizing your finances, these issues can contribute to financial anxiety.

Ignoring financial concerns can often only compound the problem, as delaying action means more effort later. Here are some ways you can help reduce financial stress and enhance your retirement savings strategy:

1. Create a Realistic Budget

Start by getting organized through budgeting. A well-planned budget reveals where your money is going and helps identify areas where you can adjust your spending. Consider using a “bucket budget,” allocating set amounts to various financial categories such as household expenses, recurring bills, entertainment, and retirement savings.

Instead of tracking every single expense, which can be overwhelming, focus on broader categories to help reduce stress. Additionally, downsizing your lifestyle—such as opting for a less expensive car or sharing housing costs—can free up more funds for retirement savings without sacrificing your quality of life.

2. Take Inventory of Your Retirement Savings

Assess all your retirement accounts, including old IRAs and workplace retirement plans. Consolidate these accounts into your current retirement plan or an IRA to get a clear picture of your savings. Automatic contributions can make saving easier and more consistent. Treating retirement savings like a regular expense can help maximize your contributions.

3. Track Your Progress

Monitoring your progress can help alleviate stress and motivate you. Track your contributions and account growth to see how your savings are growing over time. Remember that early growth in retirement accounts often comes from your own deposits rather than market returns. By contributing more early on, you set the stage for greater compound growth in the future.

4. Seek Help if Needed

If financial stress persists, don’t hesitate to seek assistance. Discuss your situation with a financial professional, financial therapist, or trusted friends and family. Open conversations about your financial concerns can provide valuable insights and relief, helping you understand and manage your finances better.

By addressing these areas, you can help reduce financial stress and stay on track toward a confident retirement.

Disclosure: Investment advisor products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. 02533710-08/24