How to Manage End-of-Year Financial Stress

Finances are a common culprit of stress, and even end-of-year festivities can’t shield us from this tension.  

In fact, “Because the holiday season often requires us to keep track of and pay attention to a greater number of responsibilities than usual, the brain’s prefrontal cortex goes into overdrive.”¹ Adding financial concerns, questions, and to-dos to the mix doesn’t help. 

In short: As the year winds down, you may feel wound up. What causes end-of-year financial stress, and how can we manage it?   

Here are six sources and solutions for each. 

It’s no secret: the end of the year can send our wallets into shock. Amidst the money-draining merriness, it’s essential to remember the basics of good stewardship.  

The American Psychological Association released an article on “How to deal with financial stress during the holiday season,” covering the 101 on managing holiday-induced financial stress. Their list includes: “Track your spending,” “Recognize how you deal with stress related to money,” “Avoid temptation,” and “Make one financial decision at a time.”²

There’s a lot you can’t control about the market and economy, but you can control your saving and spending decisions. Choose to spend and save intentionally, and you can eliminate one familiar source of stress this time of year.

Headlines always have a lot to say, and in the last few months, we’ve seen everything from the election to natural disaster to overseas conflict. A lot of motion in the news can stir up a lot of emotion in investors, taking up headspace we don’t have to spare. 

A few weeks ago, we addressed why investing in equities still makes sense in Q4 2024. In that analysis, our Chief Investment Officer noted “that you can always find a supposed reason to exit the equity market, whether it’s war, an election, or another unknown. However, what matters is maintaining a long-term adherence to your financial plan with an objective, structured equity market participation strategy.”  

The fear of the future and the greed of consumerism are roadblocks to financial independence for all Americans. Letting headlines do what they do best — stir up tension and urgency — can distract us from what matters in our plan and portfolio and cause us to miss the good news (such as the strong economic indicators we’ve seen in the last few months).  

The only crystal ball we have is the one that looks to the past to give us confidence for the future. We know that “the U.S. stock market has been resilient throughout its history as stocks have consistently recovered from short-term corrections and bear markets to move higher over longer time horizons.” 

At the end of the year, you may find yourself in one of three retirement camps:  

1. You’re navigating one of your first few holiday seasons as a retiree, adjusting to a new financial approach to gifts, hosting, travel, etc.

2. You’re approaching a 2025 retirement, and the anticipation keeps you up at night.  

3. Time off at the holidays causes you to look for a way to retire sooner rather than later.   

The ultimate source of stress here isn’t retirement itself. It’s a lack of clarity about whether you can do retirement successfully, with enough money to maintain your lifestyle, reach your goals, and leave a legacy.  

The best way to solve that uncertainty is to talk to your advisor, consult your financial plan, ask questions, and address your biggest concerns now.

Financial priorities are easy to procrastinate —they can feel complicated, unclear, overwhelming, or consequential — but the longer you wait, the more stress can build. 

For those who turned 73 or older this year, one task is to complete your Required Minimum Distributions. Most people have until December 31st, so if you haven’t talked to your advisors yet, contact them soon. 

Or perhaps you have another year-end planning move weighing on you, such as talking to a lawyer about your estate or maxing out your retirement accounts or HSA.  

Your advisors are here to make the stress more manageable — ask for help.  

When the calendar flips, financial shifts often occur.   

This can include changes to your income, work benefits, healthcare, or taxes.   

The best way to alleviate the stress of change is to stay informed and keep your financial professionals updated on any part of your plan that needs modification.  

If you’re a Credent client, rest assured that we have a team dedicated to watching widespread updates, such as the 2025 tax changes, and disseminating takeaways to your advisory team, who will keep you abreast of the specific shifts that may affect you. 

If you end the year or start the next without a plan (and we don’t mean a gift-buying, cookie-baking, holiday-travel plan), you’re sowing the seeds of future stress.  

When was the last time you had a meeting with your advisor? Are you missing your regular goal reviews? If your goals are the same, you may assume there’s nothing to talk about.  

However, regular communication with your financial professionals allows you to review your plan and investment portfolio, ensure you’re on track, and get answers to pressing questions or stressors.  

When you have a written, advisor-backed, stress-tested plan, you can see how your wealth will carry you through this season and many seasons to come, instilling hope and confidence that financial freedom is within reach.

For more guidance on how to manage end-of-year financial stress, reach out to a team member using the form below.  

Contributing sources: 

1. Edwards, S. (2016). Holiday stress and the brain. Harvard Medical School. 

2. American Psychological Association. (2024, October 22). How to deal with financial stress during the holiday season.