People experience a variety of different kinds of trauma and despite how you feel about that word, it should always be taken seriously. One source can have a serious impact on people with drastic repercussions: financial trauma.
Here’s Five Fast Facts About Financial Trauma:
- 😵💫 What Is It? - Financial trauma is the emotional and psychological distress caused by negative financial experiences. That includes overwhelming debt, experiencing poverty, or an unexpected job loss. It’s different from everyday financial stress in that it significantly impacts your wellbeing and leaves lasting damage.
- 🫨 What Does It Look Like? - It can exhibit itself through a variety of symptoms including compulsive or impulsive spending, underspending, a constant fixation on money, avoiding financial matters, extreme fear of poverty or financial ruin, or even difficulty managing financial responsibilities.
- 😬 Generational - Financial trauma can also be generational. For example, people inheriting a parent’s debt, bad financial habits, or just being raised in messed up circumstances.
- 🤧 How to Cope - Oddly enough, professionals say a good place to start is to create a realistic budget. It’s a way to allocate money effectively, prioritize debt repayment, and gradually improve your financial situation.
- 🥺 Get Help - There are two professionals people should consult in order to cope with financial trauma: a financial therapist and a financial advisor. Yes, financial therapists are real.
🔥Bottom line: Given the state of the economy, it’s understandable why people could be suffering from financial trauma now more than ever. The key is to get help and get things back on track so you can heal.
Do you suffer from financial trauma?
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