Financial stress impacts mental health; strategies to cope

Financial stress during economic downturns can severely affect mental health. With recent job losses and fluctuating markets, many individuals face overwhelming anxiety about their financial futures. Research highlights that how people perceive financial setbacks plays a critical role in their emotional response, often more so than the financial situation itself.

Jeffrey Anvari-Clark, a social work professor at the University of North Dakota, studied the impact of financial instability on mental health. His findings indicate that a person’s emotional well-being is influenced 20 times more by their perception of income changes than by the financial reality. For instance, individuals who view a drop in income as a temporary setback tend to manage stress better than those who perceive it as a catastrophe. This perception can lead to serious health issues like depression, substance abuse, and cardiovascular problems.

Amanda Clayman, a financial therapist, notes that financial issues often present emotional challenges that can paralyze individuals. Clients frequently feel exhausted and immobilized by uncertainties, which can hinder their ability to move forward. Clayman emphasizes the need to channel energy productively following setbacks, such as job loss.

**Grieving Loss of Identity** One major hurdle after losing a job is processing the grief associated with the loss of identity tied to that role. Anvari-Clark points out that individuals who fail to address this grief struggle to adapt to their new circumstances. For example, Michelle, a former CDC employee who was laid off, expressed deep sorrow over the loss of her role in preventing child trafficking. Although she mourned, she began exploring new opportunities in child advocacy and education, focusing on how she could continue to contribute to public service.

**Engaging in Side Hustles** Finding alternative ways to utilize skills through side jobs or volunteering can help mitigate the effects of job loss. Anvari-Clark suggests these activities not only provide income but also reestablish a sense of purpose. Michelle has taken up teaching and other roles, which helps her feel proactive and engaged.

Networking is another effective strategy. By reaching out to professional contacts, individuals can discover job openings before they become public. Updating resumes and practicing interview skills remain crucial steps in the job search process.

**Embracing Uncertainty** Clayman stresses the importance of adapting to uncertainty. People often resort to unhealthy coping mechanisms when faced with problems they cannot control, such as job loss or market instability. Instead of succumbing to despair, individuals should focus on manageable tasks. For example, setting aside a specific time to address financial concerns can help prevent feeling overwhelmed.

She recommends creating a list of available financial resources and setting achievable goals. This structured approach can empower individuals to handle their situations more effectively. Anvari-Clark adds that engaging in community activities can significantly speed up the job search process compared to isolation.

**Prioritizing Self-Care** For those experiencing financial turmoil, maintaining daily health routines is essential. Regular sleep, exercise, and social interactions can improve outlooks and resilience during tough times. Clayman advises treating one’s body as a vital resource that needs care, rather than allowing stress to take a toll on health.

The insights from these experts suggest that while financial crises are challenging, they can also offer opportunities for personal growth and resilience. By reframing their experiences and focusing on active coping strategies, individuals can emerge from financial stress with a renewed perspective and the potential for personal development.