Impact of Financial Anxiety on Personal Investment Decisions Among Young Professionals

In recent years, young professionals have been navigating a financial environment marked by rising living costs, unstable job markets, and increasingly complex investment products. These conditions have contributed to a noticeable increase in financial anxiety a psychological state that often shapes how individuals think about and manage their money. This study explores how financial anxiety affects investment participation, risk-taking behaviour, decision-making timelines, and overall confidence in financial planning. Primary data was collected from 200 young professionals through a structured questionnaire. The analysis employed descriptive statistics, reliability assessment, correlation, regression, and factor-based techniques. Findings show that higher levels of financial anxiety are strongly associated with reduced investment activity and a preference for low-risk, traditional financial products. The study also highlights the role of financial literacy, which appears to soften the negative influence of anxiety on investment behaviour. The results offer insights for financial educators, fintech companies, and policymakers seeking to encourage healthier financial habits among young adults.