Suze Orman says the best way to tackle financial stress is to not think about the future

No wonder. The numbers are frightening:

• American workers’ median nest egg (including those with zero saved) is just $955 — less than $1,000. That’s across workers of all ages, according to a National Institute of Retirement Security study (3).
• A growing number (7%) of retirees are returning to the workforce just to get by, according to an AARP survey. More than 1 in 3 worry about how they’ll pay for food and housing (4).

The same EBRI survey found that 67% of Americans are stressed out about not having enough stashed away in emergency savings. If hit with a $5,000 surprise expense, 30% would put it on a credit card, 21% would have to take out a loan and 15% would withdraw it from their nest egg.

Orman is known for frequently applying a tough-love approach to finances, so you might think she’d advise people to double down on savings and sacrifice in response to financial fears.

But in fact, the money guru recommends a more Zen approach, one firmly grounded in the present.

Zen approach to financial anxiety

It starts with a form of financial meditation.

“Whenever you feel financial stress, slow down and literally focus on taking a few slow and deep breaths,” she advises. “Remind yourself you have what it takes to work toward the financial future you deserve.”

She advises people to break down their long-term financial goals into “small steps, not Olympic jumps.”

For example, instead of thinking about eight months’ worth of emergency savings in entirety, she suggests putting money in an emergency savings account week by week — or month by month.

The advantage of this slow and steady approach is that financial targets, and the steps to reach them, are quantifiable, allowing you to see progress immediately.

“Any week or paycheck where you manage to put some money in savings, or contribute to a retirement savings plan, or pay down some credit card debt, is a victory,” she writes.

Orman has some personal experience with this approach, as she once lived paycheck to paycheck as a waitress (5). But there’s scientific backing for it, too.

Behavioral scientists at the University of California and Cornell University discovered that people are four times more likely to start a savings program with a financial technology app when the required deposit was $5 a day rather than $150 a month (6).

Automate savings so you don’t have to worry

Orman has another hack for anxiety-addled Americans staring at inadequate funds: Automate your savings, so you don’t have to think — or worry — about it.

“Technology is your friend here,” she writes.