Feeling Stressed About Finances? Four Steps to Take Right Away

Inflation, market volatility, job changes, divorce, and the death of a spouse can make even routine money decisions feel overwhelming. When life or the economy suddenly shifts, trying to predict interest rates or radically rearrange an investment portfolio can lead to expensive mistakes.

Becca Craig, a wealth advisor at Focus Partners Wealth, says the key to handling financial uncertainty is less about choosing the right product and more about managing behavior. Using a transition framework created by Susan Bradley and the Financial Transitionist Institute, Craig says a “decision-free zone” and a four-step checklist can help families regain a sense of control.

Here is an edited transcript of the conversation.

Why Uncertainty Leads to Poor Financial Decisions

Bob Powell: Volatile markets, higher costs, retirement, divorce, and the loss of a loved one can make even simple choices feel unmanageable. Where should people start when they face that kind of uncertainty?

Becca Craig: Uncertainty is part of life. Whether it comes from a major transition or from economic turbulence, you have to sort out what you can control and what you cannot.

As I’ve spent more time in this field, I’ve learned that success is rarely about finding a new financial strategy or product. It is about regulating your behavior and managing how you respond to an unpredictable situation. That is what creates stability for clients.

Powell: Susan Bradley of the Financial Transitionist Institute developed a framework for dealing with these moments. One of the central ideas is the “decision-free zone.” How does that help?

Craig: In a crisis, people can get bogged down in details. The decision-free zone is about stepping back, seeing the big picture, and organizing what needs to happen now, what can wait, and what belongs later.

Tasks such as reviewing cash flow, checking insurance, and having key family conversations can be handled immediately. By contrast, the stock market, inflation, the Federal Reserve, or an election are outside our control and will play out over time.

A decision-free zone helps people avoid making permanent, reactive changes to long-term money during stressful periods.

Checklist Step 1: Put Cash Flow Under a Microscope

Powell: Bradley breaks the process into four steps. Where does it begin?

Craig: It begins with cash flow. If there is any doubt about money coming in or going out, that is the starting point. You have to ask practical questions: Do I have enough cash reserves? Is my job stable? Are my expenses predictable?

For context, a Federal Reserve survey showed that only 55% of adults had enough savings to cover three months of living costs if an emergency came up.

Powell: What exercise helps people get a grip on their spending?

Craig: Take it one step at a time. Look back at your expenses over the past six months and sort essential costs from discretionary ones.

Then ask yourself: If circumstances beyond my control forced a change, such as the death of a spouse, divorce, or job instability, what would I be willing to give up? The goal is not to remove everything enjoyable, but to understand your options before a crisis forces a decision.

Powell: Essential and discretionary spending are personal. A golf membership may be discretionary for one person and essential for another.

Craig: Exactly. It comes down to knowing what matters to you and making sure your spending reflects those priorities.

Checklist Step 2: Schedule a Family Money Conversation

Powell: What is the second step on the checklist?

Craig: The second step has nothing to do with products. It is about communication.

You need to speak with the people who depend on your plan, whether that is a partner, an aging parent you help care for, or an adult child you support. Those conversations are much harder to have for the first time during an emotional crisis.

Set aside time for a family meeting before trouble starts. Discuss financial priorities, responsibilities, and where there is room to adjust, and make sure everyone is aligned. A little awkwardness now is better than a lot of confusion later.

Checklist Step 3: Review Insurance and Other Risk Protections

Powell: Step three focuses on insurance and risk management. Why is that so important during a transition?

Craig: The best defense is often a strong defense. People usually do not review life, disability, health, homeowners, or auto coverage until they have to file a claim.

Finding a major coverage gap after something happens can cause immediate financial harm. Make a list of your current policies, check premiums and deductibles, and confirm what happens if your situation changes, such as leaving an employer.

Financial planning does not happen in isolation; your insurance coverage and your broader wealth plan need to work together.

Checklist Step 4: Align Investments With Real-World Time Horizons

Powell: The final step deals with market swings and investing. How should people think about their portfolios when markets are volatile?

Craig: Financial headlines are good at making every market move feel urgent. As emotions rise, so does the risk of making an expensive portfolio mistake.

Investors should plan according to when they will actually need the money. If you have enough emergency cash and proper insurance, you can view retirement accounts as 10-, 20-, or 30-year investments. Having enough near-term cash also gives you the confidence to let market cycles play out.

Powell: So the idea is to match the asset to the liability.

Craig: Exactly. If your short-term spending needs are covered by safe, liquid accounts such as high-yield savings, you can tolerate day-to-day portfolio swings. You can rest easier knowing your long-term investments have time to recover and compound.

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