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When financial anxiety keeps you up at night, money isn't usually the root cause of the problem. Identifying the real demons will help you sleep — and live — better.
By
Jeffrey Smith, Registered Investment Adviser
published
21 February 2026
in Features
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Ask a group of people how they are feeling financially, and the majority will likely groan and share their fears. The truth is that we as a nation are experiencing more financial anxiety now than ever, and we are not sure what to do about it.
Most people believe that financial anxiety is about money. They believe that money will solve all their problems. Let's make no mistake here — money can solve a lot of financial problems, but that doesn't mean that the anxiety or fear will go away. This is because financial anxiety is usually not about money itself. It goes a lot deeper than that.
The more we know what lies at the heart of that anxiety and how to go about addressing it in a healthy way, the better position we will be in to reach a time when we can relax and stop being ruled by the fear.
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Sign upThe root cause of financial anxiety
At the heart of financial anxiety are often deep-seated fears that come from childhood. Perhaps someone saw their parent struggle to keep the electricity on, or they didn't have a vehicle to get back and forth to work. Or perhaps the situation was even more dire, and at times they didn't have enough food to eat.
Fast-forward to adulthood: The person is working and earning money, yet the financial fear lingers.
The fear instilled in childhood can persist throughout our lives if we don't identify and address it properly. It can lead us to make rash financial decisions, obsess over every detail and live a life filled with anxiety about our future.
When it comes down to it, most of us never want to experience those money issues again. While we equate it with money, it's really the deep-seated psychological feelings that we don't want to experience again.
We don't want to feel unsafe, out of control, vulnerable or that we are in survival mode. That's where the anxiety begins, and it can follow us around for years or decades — if we allow it to.
About Adviser Intel
The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
Addressing the anxiety
It's crucial that we address the psychological distress surrounding our perception of our financial situation, now and in the future. A study in the Journal of Family and Economic Issues found that subjective financial stress and worries are important indicators of psychological distress.
Not only does the anxiety of finances lead to psychological issues, such as depression, but it can also lead to health problems, including headaches, high blood pressure, a weaker immune system and digestive disorders.
Last summer, Northwestern Mutual reported a study that showed 70% of Americans feel depressed and anxious because of financial uncertainty. It's a situation that is impacting a large portion of the population's health, wellbeing, relationships, life decisions and more.
While short-term stress is normal and can motivate people to make healthy changes, chronic stress and anxiety are a whole other issue that has negative implications and should be addressed.
Moving beyond financial anxiety
Being able to identify that you are experiencing financial anxiety and doing something about it are two different things. Getting past financial anxiety takes effort, so you must no longer want to be burdened by the fears that keep you up at night or prevent you from moving forward in life.
There are some things that can be done to help, including:
Identifying the root cause of the fears and then working through them. The more you understand about yourself, the easier it will be to help make healthy changes in a compassionate manner.
Make the decision to go with the flow and stop fighting the current. The best thing you can do is set goals, work diligently toward them and not be tied to the outcome. While we may want the outcome we desire, there are a host of variables that we cannot control, so we must learn to remain steady, despite the changes around us.
Avoid piling up more debt. Americans are piling on the debt through credit cards at alarming rates, and the problem is that debt equals stress. The more debt someone has, the more stress they are likely to have.
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Don't be afraid to dream when setting goals, but also be realistic. It's always wise to maintain a balance between the two to keep momentum going and avoid feeling like there is failure.
Take the next step to address the areas causing financial anxiety, including ensuring a plan is in place to maintain security and safety. Remember the feelings you seek in a financial future.
Learn as much as possible about financial planning, either by reading books or working with a planner. A lot of fear comes from not knowing much about the markets, fluctuations and ways to invest. When the veil is lifted, and we know more, some of the fear fades.
Getting started
The best way to secure our financial future is to manage our finances today. Now is all we really have, and if we are always taking care of it, there is a good chance that the days and years ahead will be fine as well.
We don't have to see the whole staircase — we just need to see the next step to keep moving forward. It's also a good idea to remember that, according to Penn State University research, 91% of our fears never come true.
Related Content
- Seven Ways to Manage Your Financial Stress
- The Surprising Trick to Stop Money Stress Before It Starts
- Why the Ultra-Rich Still Lose Sleep Over Money
- I'm a Wealth Planner: Forget 2026 Market Forecasts and Focus on These 3 Goals for Financial Success
- 7 Emotional Habits to Avoid If You Want Financial Success
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
TOPICS Adviser Intel Get Kiplinger Today newsletter — freeContact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.
Jeffrey Smith, Registered Investment AdviserSocial Links NavigationPrincipal, The Retirement Smith LLCJeffrey B. Smith is the founder of The Retirement Smith, where he provides retirement and income-planning guidance to individuals and families. He entered the financial services industry in 1998 after studying political science with an emphasis on economics and conflict resolution. Smith began his career in insurance and later expanded his practice to focus on comprehensive retirement planning. In 2017, he passed the Uniform Investment Adviser Law Examination (Series 65) and became an Investment Adviser Representative with Gradient Advisor, LLC, operating under a fiduciary standard.
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