73% of Americans Fear Market Volatility: 7 Ways To Ease Your Worries

Market volatility is top of mind for many Americans. According to the Q2 2025 Quarterly Market Perceptions Study by Allianz Life, 73% are concerned that continued volatility could negatively impact their long-term financial plan. For some, the unease has become so strong that 48% report being too nervous to start investing right now, the highest level since 2019.

The good news is that there are concrete steps you can take to manage stress and prepare your finances for the future. Here are seven strategies to help you feel more confident.

A trusted advisor or financial planner can help you put today's headlines into perspective and focus on your long-term goals. Having an expert by your side provides not just guidance, but also reassurance that your plan is built for both calm and turbulent times.

At the same time, professional advice can help reduce stress by creating a clear roadmap for your finances. Whether you're planning for retirement or managing debt, getting help can make uncertainty feel less overwhelming.

Having cash reserves makes market downturns easier to manage. An emergency fund can cover unexpected expenses without forcing you to sell investments at the wrong time.

As a rule of thumb, it's recommended to set aside at least three to six months of regular expenses, more if you can. This financial cushion gives you peace of mind and reduces the pressure to make rash decisions during periods of volatility.

On top of market swings, job loss, medical expenses, or sudden life changes can also strain your finances. It's advisable to plan for surprises so they don't completely derail your budget, and so you don't go into debt to pay for unexpected bills — this is where creating and building an emergency fund comes in.

By acknowledging that disruptions will happen and setting aside resources to manage them, you reduce the risk of financial panic when challenges arise.

A clear investment plan helps you stay focused when the market swings. By identifying your long-term goals, such as retirement or saving for education, you can make more intentional choices about where to allocate your money.

Having a plan and sticking to a budget are crucial to both reducing stress and staying on track financially. This approach can also help balance short-term challenges, like the increase in cost of living due to new tariffs, which 77% of Americans worry about, according to the Allianz study.

High-interest debt is especially stressful when markets are uncertain. Every dollar going toward interest payments is one less dollar available to save or invest.

Tackling debt is an important way to relieve financial strain and increase flexibility. By paying down balances, you create more breathing room in your budget and reduce your vulnerability to economic fluctuations.

Financial stress may often feel heavier when you face it alone. Regular money conversations with your partner or spouse don't have to be taboo. Instead, they can help you align priorities and work together toward shared goals.

Open communication reduces conflict and can help couples feel more in control of their money. Whether you are building savings, eliminating debt, or planning for retirement, facing these challenges as a team can make the uncertainty feel more manageable.

Automating contributions to savings and investment accounts removes the temptation to time the market. When deposits happen on a set schedule, you build consistency and take advantage of dollar-cost averaging.

Automating savings as a way to stay disciplined and reduce financial stress can help you progress toward long-term goals regardless of short-term volatility.

Market volatility has left many Americans feeling anxious, and for good reason. The Allianz Life study found that nearly half of respondents are too nervous to invest, showing just how deeply uncertainty is affecting financial decisions. Yet history shows that markets have always recovered, and by preparing your personal finances today you can ride out future downturns with more confidence.

Now is the time to take steps that strengthen your financial foundation, from building savings to tackling debt. Consider how prepared you are for unexpected expenses, and reflect on where you stand financially.