It has been a tumultuous summer for the stock market and for the various governments trying to keep the world's economies on the straight and narrow.  For the ordinary person it's confusing and worrying.

But what we have to remember is that markets always have their ups and downs. This summer has been a bit of a roller coaster, but it's best not to succumb to emotion or panic selling.

It's now especially important to take a longer view of investments. If you weren't planning to cash in all your stocks this summer, it's no time to panic and change those plans. Markets move in cycles and already a degree of calm is returning to the markets. There are even some investors, quick to see a silver lining, who are snapping up stocks at bargain prices.

There are things though that you can do to cope and we've compiled our top five tips to reduce stress during economic uncertainty.

1. Focus on the things you can control -- like living within your means and paying down debt

Take interest rates for example. There's little you can do about them except make sure you're prepared for whatever may come. If you've racked up credit card debt, make a workable plan to pay it off and cut up your credit cards or at least put them in deep freeze. Use cash for your discretionary expenses like eating out and entertainment. Figure out what you spend on those and other frills and take that cash out at the beginning of the week. Once it's gone, it's gone -- no going back to the ATM before next week's installment of 'fun money.'

2. Focus on how much you need to cover your expenses

Believe it or not, this can be more liberating than terrifying.  Worrying about how you would survive on a reduced income is all the more anxiety causing when you don't actually know how much you need to live on.  Figure out what your basic expenses are - chances are you can live on much less than you think.

3. Focus on why you invested, not on what's happening in the markets now

It's hard not to take the money and run when markets turn turbulent, but before you cash out, think back to your original investment goals. If your retirement is still 7 to 10 years away, there is time for the markets to recover and there are bound to be ups and downs along the way.  If you are already retired, fund your expenses with money you have in your pensions, cash or other liquid investments to cover your needs while your investments recover.

4. Talk it out

Don't stress out in silence. Talk openly and honestly with your financial advisor and with your family about your concerns. Set up a time to talk to your spouse or partner about money.  Focus on your mutual goals and determine the immediate steps you must take if your personal finances are being impacted by outside financial events. Then look to the medium term and draw up a list of the information you need and the actions you must take. Talk to your financial advisor to fine tune your strategy going forward.

5. Hold some cash

While the prospect of collecting a meagre one or two per cent on a GIC leaves cash looking like a poor investment choice, there are other factors to consider. Our investments are supposed to ease our anxieties about financial security -- not exacerbate them. The amount of cash you hold in your investment portfolio depends on your tolerance for risk and secondly, on your cash needs for the near future. For example, you may have a high tolerance for risk but at the same time you want to save up a down payment for a house in 2-3 years.  It's best to choose cash investments so your home-buying plan can go ahead as scheduled and not be derailed by the ups and downs of the stock market.

Need more help? Check out our Smart Money Essentials, a course that lets you work at your own pace to create an actionable plan for reducing financial stress and achieving your goals. Available both in downloadable and print versions with a Q and A hotline that gives you monthly access to accredited financial advisors.