How A Tough Economy Creates Anxiety and The 5 Things You Can Do About It

We all know the economy is hurting right now. Or is it? There’s a lot of talk about whether the economy is doing well or if we’re in trouble. This can be confusing, and many of us are feeling anxious about our own finances and future.

The Economy and Our Worries

When people say the economy is "bad," it means that things like jobs, money, and business aren’t doing so well. Does the fact that the federal government keeps printing money and causes the national debt to spiral out of control really affect our every day lives? Probably not, however there seems to be fewer job opportunities, higher prices for goods and services, and overall uncertainty about the future. This can make us feel uneasy because we rely on a stable economy to live comfortably and plan for the future.

Why Do We Feel Anxious?

When the economy is struggling, it’s natural to feel worried. Here are some reasons why:

1. Job Security: Many people worry about losing their jobs or not being able to find work. The labor market is transitioning to a 'gig economy' and that's creating a more dynamic but also uncertain job/career situation. Without a steady income, it’s hard to pay bills and take care of our families. This is pretty obvious, almost not needing to be said.
2. Rising Costs: Prices for everyday items like food, gas, and housing have gone up, making it more expensive to live. This puts a strain on our budgets and can make us feel like we’re falling behind. In many areas, especially for lower skilled jobs, the cost of living is outpacing wages used to support it.
3. Business Closures: Some businesses are struggling or closing down, especially small ones, the mom and pops. Many had to close for good and those in operation are struggling to generate positive cash flows, get funding and maintain their staff. This affects jobs, local communities and the overall economy.
4. Uncertainty: Not knowing what will happen next can be stressful. Will things get better or worse? How long will this last? The unknown can be scary. Add national elections to the equation and a lot can and will change in the next half year.

Managing Anxiety in Tough Times

While we can’t control the economy, we can control how we respond to it. Here are some tips to help manage anxiety and stay resilient:

1. Stay Informed, But Don’t Overdo It: It’s good to know what’s going on, but constantly checking the news can increase anxiety. It's easier said than done, but do your best to find a balance and try not to get overwhelmed by (all the) negative headlines.
2. Create a Budget: Knowing exactly where your money is going can help you feel more in control. Be proactive with your household finances. Look for ways to cut back on non-essential expenses and save where you can.
3. Seek Support: Talking to friends, family, or a professional about your worries can be incredibly helpful. Sometimes just sharing your concerns can make a big difference. It's not easy to open up but it can be very healing, even cathartic to get things off your chest.
4. Focus on What You Can Control: While you can’t change the economy, you can control your actions. Look for new job opportunities, learn new skills, start 'side hustles' or explore alternative investments like real estate. Again, it's become a gig economy. You have to be much more involved with your finances than ever before.
5. Take Care of Yourself: Stress can take a toll on your health. Make sure you’re eating well, exercising, and getting enough sleep. Taking care of your body helps take care of your mind. I personally haven't figured out how to get enough quality sleep but that's another matter. Besides, you don't really care about my sleep patterns.

Final Thoughts

The state of the economy can be a complex and sometimes confusing topic. People's perceptions can vary widely based on their experiences and what they hear. While we can’t control the economy, we can take steps to manage our finances and stay positive. By staying informed, budgeting wisely, exploring alternative investments (like real estate), and building an emergency fund, we can navigate these uncertain times and look toward a brighter future.

Let’s support each other and share our experiences. We’re all in this together, and together, we can (hopefully) find ways to thrive.

Disclaimer:

The views shared here are my own. I encourage you to approach this writeup with an open mind and see it as a resource for further learning. As always, please seek guidance from a licensed financial expert for any investment decisions or tax-related matters you may have.

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