Obsessing about your finances can be damaging, financial therapist says

Stocks tumbled for the third straight day Monday as the market tries to gauge what a trade war would mean for the global economy.

“It’s unsettling a little bit when you see your 401k and all that go down,” said Carlos Villarroel.

With the markets so volatile, many people across the country are concerned about what that means for their financial futures.

People like Villarroel, who says he is keeping a close eye on his portfolio these days.

“I’m watching the news, keeping abreast of what’s happening, but hopefully things play out, deals are made,” said Villarroel.

Too much watching can hurt your wallet, well-being

Certified financial therapist Sarah Carr says, while staying informed is important, obsessing about where your finances stand can be damaging.

“There’s a lot of uncertainty and uncertainty is what creates the anxiety,” said Carr.

Carr says if you can, limit the time you spend looking at your investments.

“If there is not a reason to go in, meaning ‘I have my portfolio set aside, I do not need to take a distribution right now,’ don’t check it,” she said.

She also says it is not the time to make emotional decisions.

“Don’t panic sell,” said Carr.

“Emotion is not a strategy. We do not want to make decisions based on emotion because what that will end up doing is locking in losses,” she said.

Focus on what you can control

What she does recommend is looking at ways you can protect yourself.

“While you can’t control the market, there are things that you can control like your spending, your savings, your own financial decisions,” she said.

Something Villarroel says he is trying to do.

“Hopefully things will work itself out, but it could take some time,” he said.

If none of these tips work, talking to a therapist or a loved one you trust can definitely make a difference.

Carr says just speaking to someone can make you feel less alone.