Do markets, mortgages or Mom’s long-term care keep you up at night? Maybe you find yourself refreshing investment apps at 2 a.m., avoiding your bills or putting off a call to your financial adviser because you are afraid of what they will tell you. Rash decisions, such as selling assets in a panic or making a large, unplanned purchase on credit can bring momentary relief, but often make things worse in the long run.

Financial fears lead to sleepless nights and recurring thoughts about “what if” scenarios or past decisions. Many generation Xers and baby boomers are also managing late-career risks and weighing retirement options while supporting adult children or caring for aging parents. But regardless of age, legacy planning, mortgages on a primary or secondary property and the potential for

high living costs

or unexpected health expenses are a lot to carry, even for those who have done well financially.

However, naming your fears is the first step toward easing your anxiety and making more confident choices with your money.

Outliving your money

Running out of money is one of the biggest fears of many Canadians. Market drops could shrink your nest egg and carrying a lot of debt erodes disposable income quickly. This could mean delaying retirement, scaling back your lifestyle or feeling like you lost years of savings.

To face this fear head on, take proactive steps to protect yourself. Start by outlining

a realistic budget

that allows you to build a three- to six-month savings buffer so you do not need to sell investments if markets dip. Give yourself space to

identify additional steps

by pausing major financial decisions for at least 30 days while you seek professional advice about your overall situation.

For those with financial advisers, ask them to run stress-test scenarios that show how your plan would hold up if your income dropped, markets shifted or it took longer than expected to

pay off your home equity line of credit

(HELOC). Consider implementing any practical options or strategies that will enhance and secure your future financial position.

Mortgage and housing fears

Housing costs worry many at different stages of home ownership. For mortgage holders approaching renewal, although interest rates are currently dropping again, the possibility of

rates reversing course

can be a frightening prospect. For first-time home owners, persistently higher prices in many markets can raise fears of being house poor. Combine that with the ongoing costs of maintaining a property and it is easy to understand why housing worries can fuel constant anxiety.

To chase away this fear, start by listing all your housing expenses and carrying costs for each property you own. Before signing a new mortgage agreement, check with your tax professional and financial planner about strategies that could improve your overall situation.

Over the next few months,

track your spending

carefully and compare the true costs and benefits of keeping, selling or even gifting a property to a loved one. Be sure to factor in lifestyle goals, renovation plans, ongoing maintenance, estate planning and any potential income the property could generate. To make sure your housing choices fit comfortably within your long-term plan, total what you owe and work backward to determine what is affordable.

Try to ensure that your plan brings you as close as possible to retiring debt free. Then, whether caring for aging parents, helping with grandchildren or simply enjoying retirement, your revised budget suits your new lifestyle. If the numbers do not line up, consider working with a non-profit credit counsellor who can help you explore options and build a realistic and sustainable repayment plan.

Pressure to support adult children or family

For many gen Xers and baby boomers, the instinct to

help adult children

or other family members is strong, but even well-intentioned generosity can quietly erode retirement security. Whether it is contributing to a down payment, covering unexpected bills or providing ongoing support, the desire to help can leave even higher income earners feeling stretched.

If you feel haunted by

family expectations to help

, step back before your finances give you a fright. Let your loved ones know you need time to review your overall financial situation and determine what you can realistically afford without compromising your own goals. Offering limited support, such as a short-term loan or time-bound gift, can help you set healthy boundaries and prevent future misunderstandings.

Over the next few months, revisit your legacy and estate plans. Strategic gifts or early inheritances can reduce future taxes and provide help when it is needed most, laying the foundation for lasting family financial stability.

When you are ready to share your plans, invite your loved ones to the table with a neutral financial advisor who can guide the conversation and keep it focused on long-term stability. If you do decide to help, structure that support mindfully and continue to prioritize your own retirement savings and

debt repayment goals

to protect both your independence and your peace of mind.

Health scares and long-term care

The thought of an unexpected health event is one of the most unsettling financial fears. A sudden illness, injury or the need for long-term care can drain savings quickly and shift family roles overnight. The emotional toll is often accompanied by financial strain, particularly if caregiving responsibilities interrupt work or require paid support.

To prepare before a health scare hits, identify the supports available through your provincial health programs, private insurance and employee benefits. Consider adding a “care fund” to your budget to top up

health and caregiving expenses

, giving you the flexibility to reposition assets and investments without added stress.

The best way to

fend off financial fears

is with reliable information. Treat yourself to facts that ward off fraudsters and avoid the tricks of scammers. Shine a light into the spooky corners of your budget, sweep the cobwebs off your investments and banish the debt demons that haunt your peace of mind.

  • With holiday temptation coming up, consider a freedom fund to avoid derailing your financial plans
  • Don’t donate yourself into debt

Mary Castillo is a Saskatoon-based credit counsellor at Credit Counselling Society, a non-profit organization that has helped Canadians manage debt since 1996.