Worried about the impact of global affairs on your finances? Here’s how to stay positive

In recent years, you might have fallen into a pessimistic mindset about the state of the world’s finances. Tax squeezes, economic stagnation, stock market dips, and rising inflation have all been front-page news since the pandemic, which could lead you to believe that everything is “going wrong”.

Meanwhile, you could be glued to the latest news coverage of the US economy, which is experiencing turmoil due to tariffs being put in place by the Trump administration.

It’s no wonder that according to a survey, conducted by StepChange in 2024 and published by the Guardian, 41% of Brits expected their financial situation to worsen in the next 12 months.

While there are, of course, legitimate reasons for concern, media noise and polarising headlines could be doing you more harm than good. Plus, there will always be reasons to feel optimistic about your financial future, even if circumstances outside of your control are likely to have an impact on you.

Here’s how to remain positive about your financial future despite economic worries.

Your financial plan is about long-term growth, so short-term events may not affect you

Although it is always useful to be aware of what is happening in the world, remember that your financial plan is a personal journey. While many events will have an impact on you, such as stock market fluctuations, the interest rate you pay on loans and earn on savings, and inflation, that does not necessarily mean your plan needs to change or has become unachievable.

Importantly, if you find yourself glued to the news at the moment, awaiting the next “devastating” economic report from the US or elsewhere in the world, your long-term goals might be eclipsed by anxiety.

When anxiety clouds your financial judgement, whipped up by media headlines, you may end up making hasty decisions you later regret.

For example, the BBC reports that on 7 April 2025, the US S&P 500 index saw its “sharpest swings” since the Covid-19 pandemic began five years ago. This volatility clearly rattled investors’ confidence. It’s easy to believe that you have “lost money” if you see the value of your portfolio fall by thousands overnight.

But of course, these funds are only “lost” if you cash in your shares after a downturn – an action that appears tempting in the short term, but could be the wrong decision in the long term.

As we found out in 2020 and 2021, markets usually recover very quickly once the dust settles after an impactful event.

The below graph depicts just how quickly share prices regained value after the initial 2020 crash.

Source: Morningstar

While current events may not exactly mirror the events of 2020, this pattern has been observed time and time again throughout market history. Political elections, wars, and global economic crises have all had a short-term effect, but in the long term, market values have continued to grow.

Reviewing your family’s goals may help you make informed choices

If you’re feeling overwhelmed by bad news, it’s worth reviewing your family’s goals and working out whether certain events will affect them.

For instance, while US market turbulence is worrying, if you have no plans to liquidate shares in the next year or so, there’s little point in panicking.

Similarly, if Rachel Reeves’ recent Autumn Budget and Spring Statement announcements are concerning for you, take a closer look at your specific plans and think about whether they will genuinely be affected.

You may find that, despite pervasive media noise, your financial plan doesn’t need to change.

Or, if you do find that market movements, tax levies, or factors like interest and inflation will be detrimental to your plan, you could:

• Make a note of the issues you think might have an impact
• Discuss them with your spouse or partner
• Contact a Kellands financial planner for a professional overview.

These steps could silence the irrelevant noise going on around you and help you focus on what is most important.

Your financial planner can talk through your concerns and implement personalised solutions

With the above in mind, if you find yourself overcome by worry about your financial future – whether due to stock market downturns, the UK government’s tax and policy decisions, or another event – we are here to offer reassurance.

A professional can oversee your situation and help you choose the right course of action for your personal circumstances.

Our financial planners will:

• Listen to your concerns along with your goals for the future
• Use cashflow modelling software to project how certain world events might affect your financial plan
• Help you and your family gain financial peace of mind with ongoing reviews, conversations, and advice.

We believe that advice can truly make a difference. To take control of your financial future, email us at hale@kelland.co.uk, or call 0161 929 8838.

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future. Please do not act based on anything you might read in this article. All contents are based on our understanding of HMRC legislation, which is subject to change.

The Financial Conduct Authority does not regulate cashflow planning or tax planning.

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.

Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

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