Dealing With The Stress of a Financial Crisis
About.com blog: Stress Management
By Elizabeth Scott, M.S.
October 20, 2008
According to a non-scientific poll on this site, roughly 7 in 10 respondents are "very stressed" about money, and only 1 in 10 report that they are not stressed about finances — and the proportion of people stressed about money is only going up. While money is a relatively common cause of stress and marital tension, the serious global economic downturn we’re currently seeing has many people concerned about losing their home or their savings -- or both! If you’re finding yourself stressed about money, the following steps can lead you to a greater sense of peace, and a brighter financial future.
How To Handle The Stress of a Financial Crisis
Remaining Calm
When we feel threatened, our fight or flight response — the body’s stress response — kicks in and makes changes in the body. The heart rate quickens, stress hormones like cortisol are released, and a host of other changes occur that allow the body a quick burst of energy to run away fast or stay and fight — strategies that have worked for thousands of years, but aren’t always practical now. While that jolt of energy and alertness can inspire you to act, if your body remains in this state for long periods of time (as in the case of chronic stress), it can be damaging to your health in many ways. That’s why it’s important to have some stress relief strategies that can be used in a variety of situations, to calm your body’s stress response so you can think clearly and stay healthier. Then you can work on solutions.
There are a few "all purpose" stress relief strategies that can work well here.:
While we can’t always control what happens to us, much of how we respond to life’s events depends on how we see what’s happening to us; how we make sense of it all. If we see a life event as a threat, for example, we may react more negatively and helplessly than if we see it as a "challenge." If we blame ourselves and imagine that things will never change, a stressful situation feel more overwhelming than if we remember that we can always find a silver lining with the dark clouds, and that this, too, shall pass. (For more on the most effective forms of reframing, see this article on traits of optimists and pessimists, and this one on cognitive restructuring.) Here are some specific types of reframing that can be very useful in getting through a financial crisis:
Planning for the Future
A financial crisis presents significant change and challenge to be dealt with, but can also be a valuable learning experience, and a stop on the road to more stable financial times and a healthier long-term attitude toward money. (For example, a financial crisis can inspire more frugal habits, better long-term planning, and an attitude of gratitude for material possessions and other important things in life.) And even serious financial problems, like foreclosures and bankruptcies, can be overcome — look at financial greats like The Donald! That’s why it’s not only important to make a plan to get through these tough times, but it’s important to have a positive attitude toward the future. If you keep your eye on the possibilities of the future and bear in mind that much better times can be created ahead, dealing with financial challenges of today can be less stressful. When creating a plan, you should look at all the possibilities you have open (even if it may not seem like there are many), and talk to as many wise people as you can, in order to be sure there are no avenues you’re overlooking. You may want to speak with a financial advisor or credit counselor, for example, and get a clear idea of where you are right now and where you’re going. Your plan may span several years, but it’s important to have an idea of how you’re going to handle this crisis. Not only will it be easier to know what to do, but having a plan can put your mind at ease so you’re not thinking about finances and "what to do" all the time. (For more ideas and tools for managing your finances, see About.com’s Money Channel.)
In addition to making a plan and maintaining a positive attitude, it’s important to keep your positive vision for the future in mind. Your long-term goals may include a stable financial situation for yourself and your family, and a life that includes joyful activities and close relationships. Your short-term goals may simply include getting through the next month — or week — in a relatively peaceful state. Both long-term and short-term goals are important.
You can create a vivid mental image of what you hope to find in the future, and revisit it often, or you may want to create a vision board for yourself to flesh out what you’d like to see in the future. It goes along with the advice often given to tightrope-walkers: Keep your eyes on your goal, and don’t look down!
Getting Help
If you feel that the stress of your financial situation is too much for you to handle, it’s important to ask for help. Often people are afraid or ashamed to ask for help from others, but asking for help is sometimes the wise and necessary thing to do. Help can take many forms:
In addition to whatever steps you take to relieve the stress of a financial crisis, it’s a very good idea to maintain some ongoing stress management habits for your physical and emotional wellbeing. The following resources can be found on this site, free of charge:
About.com blog: Stress Management
By Elizabeth Scott, M.S.
October 20, 2008
According to a non-scientific poll on this site, roughly 7 in 10 respondents are "very stressed" about money, and only 1 in 10 report that they are not stressed about finances — and the proportion of people stressed about money is only going up. While money is a relatively common cause of stress and marital tension, the serious global economic downturn we’re currently seeing has many people concerned about losing their home or their savings -- or both! If you’re finding yourself stressed about money, the following steps can lead you to a greater sense of peace, and a brighter financial future.
How To Handle The Stress of a Financial Crisis
Remaining Calm
When we feel threatened, our fight or flight response — the body’s stress response — kicks in and makes changes in the body. The heart rate quickens, stress hormones like cortisol are released, and a host of other changes occur that allow the body a quick burst of energy to run away fast or stay and fight — strategies that have worked for thousands of years, but aren’t always practical now. While that jolt of energy and alertness can inspire you to act, if your body remains in this state for long periods of time (as in the case of chronic stress), it can be damaging to your health in many ways. That’s why it’s important to have some stress relief strategies that can be used in a variety of situations, to calm your body’s stress response so you can think clearly and stay healthier. Then you can work on solutions.
There are a few "all purpose" stress relief strategies that can work well here.:
- Breathing Exercises
Breathing works well because it can be done anytime and anywhere. People don’t have to know you’re even doing it, but focusing on your breathing can help you calm your body and soothe tense emotions within a few short minutes. - PMR
Progressive muscle relaxation is another fast-acting stress reliever that I really love to recommend because it’s simple, free and can be done just about anywhere. Again, it can calm your body’s stress response so you don’t remain in a state of chronic stress. - Journaling
For those who are really stressed and need to feel that they’re doing something, journaling about stressful emotions can help get them out of your head so you don’t end up ruminating on what stresses you. Be sure to end your journaling session with some brainstorming on solutions, and you’ll get a better sense of control over the situation, and a more positive attitude.
While we can’t always control what happens to us, much of how we respond to life’s events depends on how we see what’s happening to us; how we make sense of it all. If we see a life event as a threat, for example, we may react more negatively and helplessly than if we see it as a "challenge." If we blame ourselves and imagine that things will never change, a stressful situation feel more overwhelming than if we remember that we can always find a silver lining with the dark clouds, and that this, too, shall pass. (For more on the most effective forms of reframing, see this article on traits of optimists and pessimists, and this one on cognitive restructuring.) Here are some specific types of reframing that can be very useful in getting through a financial crisis:
- If you’re feeling that your financial crisis is a form of personal failure, remind yourself that many, many people are in this situation as well. The situation itself is not a failure on your part, and working through it only demonstrates your strength.
- If you’re concerned about the impact on your family, remind yourself that families can grow stronger and closer when they weather challenges together, and that this experience (although you may not have willingly chosen it) can make your family stronger, too.
- If you’re stressed about the uncertainty of the future, remind yourself that these changes also bring opportunity; down the road, you may find yourself in an even better place. Even if you don’t have more money, you may have more happiness.
Planning for the Future
A financial crisis presents significant change and challenge to be dealt with, but can also be a valuable learning experience, and a stop on the road to more stable financial times and a healthier long-term attitude toward money. (For example, a financial crisis can inspire more frugal habits, better long-term planning, and an attitude of gratitude for material possessions and other important things in life.) And even serious financial problems, like foreclosures and bankruptcies, can be overcome — look at financial greats like The Donald! That’s why it’s not only important to make a plan to get through these tough times, but it’s important to have a positive attitude toward the future. If you keep your eye on the possibilities of the future and bear in mind that much better times can be created ahead, dealing with financial challenges of today can be less stressful. When creating a plan, you should look at all the possibilities you have open (even if it may not seem like there are many), and talk to as many wise people as you can, in order to be sure there are no avenues you’re overlooking. You may want to speak with a financial advisor or credit counselor, for example, and get a clear idea of where you are right now and where you’re going. Your plan may span several years, but it’s important to have an idea of how you’re going to handle this crisis. Not only will it be easier to know what to do, but having a plan can put your mind at ease so you’re not thinking about finances and "what to do" all the time. (For more ideas and tools for managing your finances, see About.com’s Money Channel.)
In addition to making a plan and maintaining a positive attitude, it’s important to keep your positive vision for the future in mind. Your long-term goals may include a stable financial situation for yourself and your family, and a life that includes joyful activities and close relationships. Your short-term goals may simply include getting through the next month — or week — in a relatively peaceful state. Both long-term and short-term goals are important.
You can create a vivid mental image of what you hope to find in the future, and revisit it often, or you may want to create a vision board for yourself to flesh out what you’d like to see in the future. It goes along with the advice often given to tightrope-walkers: Keep your eyes on your goal, and don’t look down!
Getting Help
If you feel that the stress of your financial situation is too much for you to handle, it’s important to ask for help. Often people are afraid or ashamed to ask for help from others, but asking for help is sometimes the wise and necessary thing to do. Help can take many forms:
- Friends and Family
The people who love you don’t want to see you suffer alone. If you need a wise ear or a shoulder to cry on, friends and family are usually very good at offering the type of comfort and support. In fact, that’s what they’re there for. - Financial Advisors
In financial crises, sometimes the type of professional help you need can come in the form of someone who understands money crises better than the rest of us. Often, getting a plan put together with the help of a professional can take much of the stress away — you may feel more in control, less alone, and more optimistic about your situation. - Mental Health Professionals
Don’t underestimate the importance of the other type of "professional help" when you’re experiencing a crisis. Sometimes the stress of a financial crises can be more than one person can — or should — handle alone. If the stress relief techniques mentioned in this article seem to be not nearly enough help for the type of stress you’re facing, it may be time to talk to your doctor. If you’re feeling an overwhelming sense of hopelessness, a lasting loss of interest in activities you usually enjoy, or a general feeling that you probably do need more help, for example, a professional can offer more in-depth options that can help you through these difficult times. If you don't have a professional that you trust, you can find a selection of qualified professionals online at UCompare HealthCare.
In addition to whatever steps you take to relieve the stress of a financial crisis, it’s a very good idea to maintain some ongoing stress management habits for your physical and emotional wellbeing. The following resources can be found on this site, free of charge:
- Free Weekly Newsletter
This newsletter comes twice a week to provide you with the latest research on stress as well as ongoing information and resources for leading a less-stressed life. Each newsletter includes links to current discussions from the forum, relevant quizzes or polls, and information you can use to make simple and effective changes in your life to reduce stress right now. - Free E Courses
My stress management e courses provide you with more in-depth information on various stress management topics, as well as tools you can use to better understand your own situation, make positive changes, review your progress and connect with others. - Stress Reduction Resources
For several other ways to get more out of the site, see this list of free stress reduction resources that you can begin using right now! Also, scroll down for more resources.
