A recent, nationwide survey of approximately 1,000 adults found that 86% of those surveyed indicated they are experiencing stress relating to their finances. Why is this important? According to that same survey, nearly half of those who indicated they are experiencing financial stress believe their stress hinders their ability to make financial decisions. Not only are an overwhelming majority of those surveyed stressed about their finances, but when it’s time to make a financial decision, their stress is preventing them from making a decision which may be in their best interest.
The good news – 75% of those surveyed with stress responded favorably to several methods to help reduce their financial stress, including: having a deeper knowledge of finance in general (22%); having a better understanding of their financial situation (14%); and having more time to focus on their finances (12%). The #1 answer shouldn’t surprise anyone – having a financial plan (27%). But when the survey respondents were asked how they cope with their financial stress, only 5% indicated they contact a financial professional!
Why is this number so low? Either the respondents like living with stress that affects their financial decision making or they haven’t seen the results of the Household Financial Planning Survey, which examined approximately 1,500 American households’ financial priorities, savings and preparedness on a series of financial goals and explores the impact of financial planning on household financial decision makers’ outlook and outcomes across a range of incomes. The survey found:
- Planners are more likely to feel on pace to meet all of their financial goals
- Planners feel more confident about managing money, savings and investments than non-planners across all income levels, and are more likely to describe themselves as living comfortably
- Planners report more success, including saving a higher percentage of their income and building greater wealth than non-planners
If you still don’t think you need a financial plan, consider the recent results of the America Saves Week survey, a sample of approximately 1,000 American adults in January 2017.
- 88% of respondents with a financial plan are reducing consumer debt or are debt-free
- 82% of respondents with a financial plan have sufficient emergency savings
- 86% of respondents with a financial plan are spending less than their income and are saving the difference
Did you know that April is National Stress Awareness Month? If you’re experiencing financial stress (and frankly, who isn’t after tax season?) and want to proactively reduce your stress levels, contact us and make a plan today!
 ORC International, Stress Awareness Month Survey Report, 2015.
 2013 Household Financial Planning Survey and Index, prepared by the Consumer Federation of America and Certified Financial Planner Board of Standards, Inc. http://www.cfp.net/docs/public-policy/infographic-hpi-2013.pdf?sfvrsn=2
 America Saves and American Savings Education Council 2017 National Survey Assessing Household Saving http://americasavesweek.org/wp-content/uploads/2017/02/America-Saves-Week-2017-Infographic.pdf