Worried About the Economy? Tips for Coping with Financial Stress

Bad news about the economy has everyone stressed. People are worried about their retirement savings, their mortgage payments, their credit card bills, their jobs, their banks and just about everything you can think of. It's taking a real toll on the American psyche. In fact, according to a new survey by the American Psychological Association, 80% of us say the faltering economy is a source of significant stress in our lives. That's a big increase from April when only 66% of us blamed the economy for making our lives miserable.

People who don't normally have trouble coping with life's stresses are reeling under the constant bombardment of new disasters. All this stress is sending more people to therapists for help coping with the added mental strain. On the flip side, money troubles are causing some people to cut back on needed counseling and medications to save money.

Medical experts say the best way to cope with stress is to exercise, eat healthfully and spend more time with family and friends. The American Psychological Association also suggests the following:

• Don't panic. When you hear bad news, take a deep breath and try to remain calm. Don't allow yourself to get caught up in the doom and gloom. Try to focus on what's actually happening in your life today and not all the things that might happen.
• Make a plan. Identify the things that cause you financial stress. Think of ways you can reduce expenses and manage your money more efficiently. Even small changes like cutting out your daily Starbucks run can have a significant effect on your budget. At $4 a day, that latte costs you $20 a week, $80 a month or almost $1000 a year. Write down your plan and stick to it. Review your plan periodically and make adjustments as needed.
• Be smart. Many of us respond to financial stress in unhealthy ways: drinking, smoking, emotional eating or gambling. These things will only compound stress and should be avoided. Fight unhealthy urges by eating right, exercising more and seeking the support of family and friends.
• Take action. A large degree of the stress people feel during economic downfalls comes from being pummeled by forces out of their control. Take control of what you can. Take a walk or have dinner with your family. Improve your future job potential. Learn a new skill, take a course through your employer or tap into free and low-cost job skill resources available in your community.
• Call in the pros. Seek help from a professional credit counselor or financial planner if you feel like you're in over your head. They may be able to negotiate more favorable loan terms and set up realistic payment plans with creditors. They can also help you develop a workable financial plan to get out of trouble and stay out.
• Get help. If you still feel overwhelmed, talk with a counselor. Don't let yourself sink into depression. Everyone needs a little extra help some time. There's no shame in admitting you aren't Superman.
• Have faith. Don't ignore the power of prayer. Many people find great comfort in their faith, particularly in times of high stress. When you feel life's burdens are getting too heavy to shoulder, ask God to share the load.