Coping with Financial Anxiety in a Recession
Within my social circles, I hear a lot of the possibility we are in a recession. Before writing this post, I literally googled “are we in a recession” because I have been existing with a general knowledge that we may be.
I’ll be real: I don’t study finance or economics, so I don’t really know. Thankfully, it’s not my job to figure out whether we are or not in a recession. But I will acknowledge the very real increased price of goods (eggs!), steadily increasing rent prices (especially in Austin), and large number of lay-offs in the tech field. I feel the anxiety and fear of potential financial instability and a lot of my clients do too.
What is Financial Anxiety?
Financial anxiety is the experience of feeling worry, fear, or unease about our finances. Whether or not we are in a recession, there’s one thing I know for sure: our nervous system does not know the difference between a real and perceived threat. The fear and anxiety we feel about a potential job loss, or lack of raise to offset inflation, or managing our finances with price change of goods–is real. And for any of us who don’t have generational wealth, any threat to our finances (real or perceived) can be a threat to our livelihoods.
These feelings of fear and anxiety around finances may result in several other feelings and behaviors such as (but not limited to):
Feelings of overwhelming stress
Feeling out-of-control
Feelings of shame
Fear of spending
Overspending
Avoidance (in looking at bank account balances, discussing money with others, maintaining bills, etc.)
Low mood that may lead to depression
Why Do I Have Financial Anxiety?
Because we are all unique with different life experiences, it’s impossible to deduce financial anxiety to any one thing. Financial anxiety can be the result of systemic inequality, financial trauma, financial insecurity, our upbringing, our values, our “money story”, etc.
Financial anxiety at times can cause or be the cause of more severe issues such as depression. For this reason, it’s a good idea to explore your feelings, thoughts and history on finances with a licensed mental health professional.
4 Ways of Coping With Financial Anxiety
#1: Recognize You’re Not Alone
When we start to believe we’re alone, we might start to feel shame (and thus further isolated). We might keep our feelings and experiences a secret. And shame grows in the darkness. But money stress is one of the top reasons people seek individual therapy (and couples therapy!). You’re not alone in your experiences and you don’t have to be alone in your coping either.
#2: Notice the Way Your Body Responds
Being mindful of the way your body responds to issues around finance can help us stay present and engaged, but it can also increase our awareness of what feelings we are experiencing. Is that tension on my back feelings of stress? Is that tightness in my throat feelings of fear or sadness? The more aware we are of our feelings, the more insight we have on how we can approach soothings those particular feelings.
#3: Take Care of Your Body
Stress, worry, and fear (amongst other uncomfortable feelings) take a toll on our bodies. Take time to care for your body by noticing its needs and doing what you can to take care. This might mean getting sufficient sleep, eating fulfilling meals, and bringing movement to our bodies when possible. It also means resting and taking a break. But be aware this might be a challenge if we aren’t used to listening to our body’s needs.
#4: Talk to Someone
Talking about finances with someone we trust & know will respond with empathy can be a big stress reliever. Opening up about this subject may also lead to tips and advice (hopefully if that’s what you’re looking for). But finances can also be a big source of shame and vulnerability, and it can be hard to find someone to talk to about it. In that case, consider finding a licensed mental health professional who has a specialty in finances. Be clear and direct about what you’re looking for from your therapist so that you can receive the kind of support you want.
We hope these tips are helpful in ways to cope with financial anxiety. This list is not exhaustive and there may be other ways to cope. We hope you have found this information helpful and that you find what works for you. If you would like support from Belonging Counseling in exploring these or more ways – contact us!
