You do not need to be a pessimist to feel the growing unease surrounding artificial intelligence and an increasingly unstable geopolitical landscape.
From fears of a market collapse to Microsoft co-founder Bill Gates’s stark warning that rogue AI systems could potentially cause billions of deaths, the outlook can feel more unpredictable by the day.
Around one in seven Americans has already experienced job displacement linked to AI, according to recruitment agency Davron. Meanwhile, US consumer confidence fell close to historic lows last month, figures from the University of Michigan showed.
For decades, Americans have been encouraged to build wealth through property ownership and regular 401(k) contributions. But with many people feeling that global disaster is closer than ever, some are questioning whether traditional financial advice still applies.
Our News Outlet spoke with financial and mental health experts about practical ways to safeguard your finances while easing some of the anxiety surrounding the future.
1. Begin with manageable changes
With more than half of Americans stretching their money until payday, taking control of your household budget may sound overwhelming. But it does not have to be.
Instead of aiming for an ambitious savings target that quickly becomes impossible, begin with an amount you can realistically maintain, advises Iñigo San Martín, executive director at digital finance platform Raisin US.
Dr Ryan Flanagan, director of the Resilience Program at Silver Hill Hospital, said people should remember that living paycheck to paycheck is not a personal failure
‘The objective is not to transform your finances in a single night, but to build a consistent savings routine that can expand gradually,’ he told Our News Outlet.
‘Focus first on spending you can influence most easily. Rent and other fixed bills may not be quick to change, so examine flexible costs such as food shopping, restaurant meals, travel, subscriptions, and entertainment. Modest reductions in several areas can create meaningful savings.’
San Martín recommends putting aside whatever small sum is possible, explaining that even a ‘modest financial buffer built over time can bring greater peace of mind.’
Each small win can reinforce the feeling that progress is possible, making it easier to take larger financial steps later.
2. Focus on your own goals, not everyone else’s
The pressure to match other people’s lifestyles is difficult to escape. New clothes, the latest phone or gadget, and tickets to popular events can all seem essential, particularly when rising grocery and household bills are already putting budgets under strain.
Learning to turn down an expense occasionally can be more freeing than expected, especially when it protects your longer-term financial goals.
‘Keeping to a budget becomes more challenging when social plans involve dinners, holidays, or other shared activities,’ San Martín said.
Iñigo San Martín, executive director at Raisin US, encourages people to review smaller expenses and feel comfortable declining plans they cannot afford
‘You are not required to explain every part of your financial situation, but saying that something falls outside your budget can ease the pressure. There is no need to apologize for putting your financial priorities first.’
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3. Distinguish financial facts from emotional reactions
Dr Ryan Flanagan, director of the Resilience Program at Silver Hill Hospital, suggests creating a plan and to avoid spiraling.
‘Try to separate the emotion from the facts. Anxiety tends to catastrophize. Try to slow things down. It might be helpful to sit down and write out what is actually true about your specific financial situation at this time,’ he told Our News Outlet.
He also suggested detaching the idea that living paycheck-to-paycheck is a ‘personal failure.’
‘You might not be able to control your income in a given month, but you can control how you treat yourself, and when and how to ask for help. Try to preserve the basics: sleep, food, exercise, and staying connected to people,’ he said.
4. Make an appointment with yourself
Scheduling a regular dedicated moment to review your finances can help stop that feeling of doom from hanging over you whenever you make a small purchase.
‘I literally block out time to worry about my money,’ says Hanna Horvath, a certified financial planner.
‘I have a standing 30-minute appointment on my calendar, typically every few weeks. Whenever I get stressed about something, I’ll write it in the calendar notes,’ she told New York Magazine.
They say writing down your worries before bed is a good way to dispel them, and it’s a strategy that can work especially well for money troubles.
5. It is the end times after all, you can spend a little
Just because times are tough, doesn’t mean every single penny has to be saved for a rainy day.
‘If your current phone or car still meets your needs, extending its life can be an easy way to avoid adding another expense,’ San Martín said.
‘[But] saving money doesn’t mean you can never make a major purchase. If you’ve planned for an upgrade and can afford it without compromising essential expenses, debt obligations, or your savings goals, it can still fit within a responsible financial plan.’
Treating oneself to small items, like a coffee or baked good, can actually be good for a person’s health.
‘A sustainable financial plan doesn’t have to eliminate everything you enjoy,’ San Martín said.
‘In fact, setting aside a small amount for something you enjoy can make a budget easier to stick with over the long term.’
So enjoy the occasional chocolate chip cookie from the bakery. It won’t crumble the entire financial plan.
