Coping with Anxiety about the Recession
It's natural to have anxiety over what the future holds. One minute we're trying to figure out our careers, establish ourselves financially and plan for our future. Then, just when we think we're starting to figure it all out, we have to worry about the economy too.
As the value of a dollar depreciates, it feels like our hard work and efforts lose their value with it. Undoubtedly, it's a stressful and scary thought to think that things might take a turn for the worse. We don't know how bad things will get or what will happen next.
And that's both the good and bad thing about economic growth — because we don't know if the worst will happen at all. But that glimmer of hope never seems like much to cling to when you're anxious that your livelihood is on the line.
For these reasons, it’s vital to remember that we can't control what happens in the economy. We can only control how we react to it, and anxiety will only worsen our worries and stress.
Here are some things that can help you cope with your anxiety about the recession.
Shift your focus and perspective.
There's a difference between observing the news and absorbing the news. Every time you see a chart that looks like the stock market is taking a nosedive, try not to let it take you down with it.
In other words, staying informed is okay, but don't dwell on the percentages and unknowns. Instead, channel that concern and energy toward your personal and financial situation. Pay less attention to the economic news and more to your news.
Too often, we get wrapped up in what's happening in the world that we forget to focus on our own lives. Not only that but humans aren't meant nor equipped to handle the level of stress and crises that we often do. Remember that stress is more likely to be life-threatening than our financial situation ever will be.
Pause and calm your emotions.
When you feel anxious, take a pause. Try to calm your emotions by taking some deep breaths, going for a walk, or writing down your thoughts (and then maybe ripping them up). Unmanaged emotions can also lead to poor decision-making, like reckless financial decisions.
Now is not the time to withdraw all your retirement funds (unless, anxiety aside, you already planned to). But, it might be a good time to consider meeting with a financial advisor to regain control and a sense of peace.
Decatastrophize.
Observe the thoughts going through your head. Are they realistic? Are they helpful? Most likely, they're neither — our anxiety loves to spin stories that are rarely accurate and seldom helpful.
Decatastrophizing is a cognitive behavioral therapy technique that helps people manage their anxiety-provoking thoughts and beliefs. The premise is simple: write out the worst that could happen and then look at the evidence.
Frequently, people with anxiety focus on the negative outcomes of a situation without considering the evidence. For example, if you're anxious about a recession, you might focus on losing your job and being unable to pay your bills. But what is the evidence for that?
Furthermore, what's the worst that could happen if your worry does come true? And what's most likely to happen? Write out what you would do in these scenarios.
Decatastrophizing can help you to see the evidence and realize that the worst-case scenario is either not as likely as you think or leaves room for other opportunities.
Talk to someone about it.
When it comes to anxiety and recessions, a combination of financial and therapeutic advice can make all the difference. Meeting with a therapist can help you understand and manage your anxiety holistically.
Your therapist can also advise you on how to talk to your family and friends about your anxiety, as it's important to have a support system, especially during tough times.
The recession may make you anxious and afraid, but it's not the end of the world. There are ways to cope with these feelings and get through this time of uncertainty, so stay positive, be proactive, and reach out for help!
Remember: this post is for informational purposes only and may not be the best fit for you and your personal situation. It shall not be construed as legal, financial, or medical advice. The information and education provided here is not intended or implied to supplement or replace professional advice of your own attorney, accountant, physician, or financial advisor. Always check with your own physician, attorney, financial advisor, accountant, or other business or medical professional before trying or implementing any information read here.
