Market Performance: December 15, 2023.

US stocks rose on Thursday as interest rate sensitive areas of the market rallied in the wake of the Federal Reserve's pivot to more rate cuts in 2024.

The Dow Jones Industrial Average (^DJI) rose 0.4% or more than 150 points, while the S&P 500 (^GSPC) popped over 0.2%. The tech-heavy Nasdaq Composite (^IXIC) added 0.2%. The Dow Jones set a new all time high for the second-straight day.

The Fed's final policy decision of 2023 signaled the central bank is unlikely to hike interest rates further and could even cut rates three times next year. The news sparked a rally in the Real Estate sector which rose nearly 3% on Thursday.

Depressed or anxious about finances amid inflation and rising rates? You're not alone

As rent, mortgage payments, grocery bills and the cost of just about everything else rises, more and more are feeling the weight — not just on their budgets, but also on their mental well-being.

Some are grappling with what a November report from MNP Ltd. called "inflation isolation": loneliness brought on when avoiding the expense of social events means less time with friends. Two in five are feeling stressed or anxious because of inflation and higher interest rates, the report found.

But financial and mental health experts say it’s crucial to break out of the cycle of shame and avoidance that money struggles can cause and ask for help, whether from friends and families or from professionals.

Financial struggles can perpetuate mental health challenges such as depression and anxiety, Rafuse said. In turn, those challenges can affect a person’s financial situation, such as their spending habits, budgeting, or ability to maintain a steady job.

“Spend some time building your personal finance literacy, because it gives you the language to know what you need, and to know what you're looking for.”

Having a Great Christmas on a Tight Budget

It’s the most wonderful—and most expensive—time of the year! And if you’re like so many others who are struggling to get out of debt, this season can cause a lot of stress and completely derail your money goals. But it doesn’t have to, and you can still have a meaningful holiday season while sticking to your budget and knocking out that debt.

Actually have a budget:

Creating a fresh budget each month is one of the biggest keys to success on your debt-free journey, and it’s also the key to keeping your holiday spending in check. I suggest making a zero-based budget, which just means you give every dollar you earn an assignment. If you haven’t made a budget for this month yet, this is your sign to download a free budgeting app (I personally recommend EveryDollar) and write down exactly how much you’re spending on what—and stick to it.

Don’t try to do “the most”:

If you look at your budget and realize all your usual holiday traditions will mess with the progress you’ve made, I’m giving you permission do the least. I’m talking less Secret Santa exchanges, less side dishes and less travel. Seriously. Sometimes doing the least will keep you the most on track with your money.

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