Financial Wellness in Difficult Economic Times

By Mason Turner, MD
Chief, Department of Psychiatry; Kaiser Permanente San Francisco Medical Center
Member, Board of Directors, Mental Health Association of San Francisco

Constantly, we are bombarded with economic negativity. One need only turn on the TV to hear of the gloom and doom of the housing market in California. “Foreclosures up 200 percent in the Central Valley” or “Bakersfield leads the nation in defaulted loans” may not apply to most of us living outside of these areas, but the effects are nonetheless anxiety-provoking.

Or worse yet, listening to CNN or MSNBC will almost certainly lead to fears that the entire American economic system is on the verge of collapse. When coupled with logging on to your 401(k) or brokerage site and realizing that your hope of retiring in the next year or two is no longer a reality, the bad news that surrounds us may make us feel powerless to act or to even control our future.

This powerlessness and lack of control can often lead to depression and anxiety about what the future holds. Worse yet, it can cause a remission of psychiatric symptoms that had previously been well managed with psychotherapy and/or medications.

In these challenging economic times, promoting and maintaining our wellness is more important than ever but can be more difficult. How do we learn to stop worrying about events completely out of our control? Luckily, many different techniques exist to help reduce the impact of financial stress on your overall well-being.

Firstly, we must recognize the impact that the economy has on those around us in order to better understand how to take care of ourselves. From family members to co-workers and clients whom we serve, we experience secondary stress as we absorb their worries and anxieties, particularly when we hear woes en masse. This can lead to compassion fatigue, a term we tend to associate with treating patients, but one that is no less relevant to feeling compassion for our loved ones. If we constantly hear about financial woes, then we must be prepared to neutralize the stress that we may feel as a result by practicing distraction techniques. Take a walk during the lunch hour. Practice meditation for five minutes during your day. Leave your e-mail unread for 24 hours. Anything that allows you to shift your focus for even a brief period will help.

Also, build opportunities for sustained relaxation into your schedule. Whether it’s a much needed family vacation or simply a hike in the beautiful countryside that we are privileged to live around and within, getting away from the pressures of your daily life is essential to developing and maintaining balance. However, remember that “low-key” is an essential component. If we structure our relaxation activities in such a way that they are more stressful than our work commitments, we have undone the good that may result.

Additionally, when your mind or body ventures into a stressful situation, remember to evaluate what is controllable and what is not controllable in that situation. When you can identify what you can and cannot change, it will help you focus more effectively on what you can control. We may not be able to stop the news that is being broadcast, but we can choose whether or not to listen to it.

And what if you are the one experiencing financial stress? Simple, basic principles apply: reduce your costs, limit your debt, and eat at home more frequently. When those aren’t enough, tough decisions may lie ahead of you, but remember that making those tough decisions will lead to a less stressful future. Also, keep in mind that stress in one area means that you should look to other areas of life to reduce stress and simplify your life. You might not be able to reduce the financial stress but you may have more control of stress reduction in other areas (work, family, etc.).

Beyond these steps, building more positive experiences into your life that do not cost much can greatly help. Worrying about money should not keep you from being able to enjoy your life.

And every once in awhile, you should turn off the television, discard the newspaper and focus on the good news that surrounds us, rather than the bad. Find what you enjoy and do it as often as you can!