How Your Emotions Affect Your Finances - And How To Fix It

Millions of people are going through overwhelming emotions due to the financial meltdown our nation is currently facing.

According to The American Psychological Association, the high level of stress associated with money problems is creating increased anxiety, depression, and tragically, even suicide. A recent Gallup poll states that worry about the economy is tied for first (along with the pandemic) as the issue Americans are most concerned about, and therapists like say they are counseling more people on the emotions surrounding finances.

When things start to go wrong, many people find themselves dwelling on the worst possible outcome. It’s not abnormal, but there are a few steps you can take to help you regain your balance.

Instead of just thinking about the worst that could happen, you need to think about what the best scenario could be. This will help you see that your financial future may have some bright spots. It’s just an exercise, but play fair and let your mind find reasonable positive outcomes and it will help you release your anxiety.

The next step is to examine what it is that’s most likely to happen. There’s your real situation, and you need to grab hold of it. You may find that you need to change your spending habits, work more, or rent a room to bring in extra money. But you may also need to take steps on a different level.

Being financially insecure can permeate our lives and the fallout can be felt everywhere. You may be frightened our angry about your situation, and when you walk around in fear and anger, it leaks into all of your actions. Like having a headache, you just aren’t your best self, and most people will see it.

If what’s going on with the economy is making your relationship uncomfortable, or if you just can’t stop worrying, you need to actually do something deeper about it. There are hundreds of books and many financial, as well as mental health professionals who can at least answer some of your questions, and knowledge is power. Sticking your head in the sand won't let you see a solution, and there always is one if you look hard enough.

A wise man once said, “If all your problems can be solved with money, then you haven’t got any real problems.” I’m sure most of us could find exceptions to this rule, but he makes a good point. Money can’t buy you health, love, or even happiness. It can buy you comfort, and that’s a lot, but it isn’t a replacement for physical wellbeing or for people who truly care for you.

So take stock of your emotional savings account, your mutual interest fund, and how fortunate you are to have love in your life. Now that’s hedging your bets.