Thousands of federal workers laid off from their jobs are not the only ones dealing with financial uncertainty. People are afraid to look at their retirement accounts, while others are bothered by possible recessions and layoffs – fears about our personal and collective financial futures can be overwhelmed.
It is undeniable that having financial reserves can help people survive financial instability, but some studies show that there are other factors that are more important in people's physical and mental health than certain factors (or in some cases).
Jeffrey Anvari-Clark, a social work professor at the University of North Dakota, said the way people think about their financial situation how to deal with their environment. He studies the ways in which financial instability affects people.
A study he published in 2023 showed that a person’s feelings about a decline in income have an impact on their emotional well-being 20 times that of actual financial change itself.
"Is this a perception, a disaster or a small matter?" Anvari-Clark said, describing the way people deal with financial insecurity in people's research. He said that narratives of people telling themselves that money “have played a greater role in determining a person’s feelings about financial health” than actual financial reserves.
He said those who can temporarily experience financial setbacks may be able to stay relatively calm and pass it, while some may experience the same setbacks as disasters – which trigger strong stress and can get stuck in serious health problems such as depression, substance abuse, high blood pressure, high blood pressure and heart problems.
Anvari-Clark said that it's not to say that money is OK. If people can’t pay a mortgage or get food on the table, it’s a crisis. But his research shows how people respond to this crisis can make things better or worse.
“Money is often an emotional problem, treating itself as a mindset,” said therapist Amanda Clayman, who specializes in helping people manage financial difficulties.
Her clients often make her feel exhausted or paralyzed – not only due to unemployment, but also due to handling various financial uncertainties.
After financial setbacks, people were asked to take steps to guide their energy in a productive direction, Kleiman said.
One of the factors that keep people from moving forward after they lose their jobs is that they feel sad about the identity they have established at work, Anvari-Clark said.
He said it is important to recognize and deal with this kind of sadness.
"Those who don't know how to deal with this loss of identity," he said, struggling to move forward after he lost his job. “That’s what makes it a bigger disaster, not just a reduction in revenue.”
That is, this is not necessarily a simple process.
Michelle, a federal worker, said: “Work and tasks are something I really mourn. Michelle asked to use only her middle name so as not to endanger the severance payments she still receives from the CDC.
Given that her entire team has been cut, she is worried that no one will continue the work they are doing.
“I’m concerned about what this means to our country and the safety of our people,” she said.
Nevertheless, she began to consider what she could do in other countries, in the center of children’s advocacy or in the field of sex education.
“I’ve been thinking about the path to thinking about the bigger goal of serving the public,” she said.
In situations other than unemployment, sadness is needed. Financial therapist Amanda Clay takes his life as an example.
“I had a kid in college this fall and over the years, we’ve added her 529,” Kleiman said, “we’re just watching most of her savings go away.”
Kleiman said she was trying to “sad about our financial situation.” She said it was painful to experience and deal with resentment and “I did everything right”, but she thought it was the most constructive step she could move on and embrace herself and discover her new financial reality.
One thing that can help improve unemployment is finding new ways to use existing skills such as side noise or volunteering, Anvari Clark said. He said that even if the work is not given, these activities can help people find new paths. They help give people goals and allow people to eventually reshape themselves.
Michelle, who was fired from the CDC, has been studying multiple aspects, teaching at a university, and another related to standardized testing.
"At least it helps to let me do something that makes money, and I've always been a person who makes me bow my head and work very hard," she said.
"The process of getting out of the community can bring people back on the work track much faster," Anvari-Clark said.
He said other positive coping mechanisms may include contacting professionals to ask about potential opportunities when specifically facing unemployment.
“The good thing about the network is that you may even have these opportunities published,” he said. “At the same time, you absolutely want to send your application, refresh your interview skills, and refresh your resume.”
"Our hunter collector ancestors were not existentialists," Kleiman said. When people felt the threat, they designed "determine what we can do that can help the threat disappear." Lack of the ability to solve problems that are beyond our control - landing new jobs to return the market to its former level - people often resort to unhealthy habits such as collapse and falling into despair, or even self-destructive behaviors such as drinking or rasping or rasping at food and media.
"What we're looking for is emotional relief, but we don't know," Kleman said.
Learning to direct these combat or flight intuitions to productive habits often means gaining new skills, Kleiman said.
She suggests that when facing financial uncertainty, first open a discrete time to focus on it, such as a month or three months, rather than being overwhelmed by the things that often have a few years (such as retirement savings). She said, allow yourself not to worry about future events and try to get your eyes on training immediately.
Second, Clayman suggests to start a question.
"The information-gathering phase is actually a crucial step because it requires us to self-regulate," Kleiman said.
For people who deal with debt or suddenly lose income, make a list of all financial resources in this short time and set goals for savings or results, she said.
In the case of unemployment, this may also mean evaluating all potential areas where jobs may be found and then applying a certain amount of work over that time period.
Experts stress that these behaviors can help people become more flexible and agile in dealing with uncertainty.
Anvari Clark said it is also important for people who deal with economic and financial tsunamis, such as unemployment, to focus on their daily health. Things like getting enough sleep, exercising and maintaining social connections all make a difference in improving your own prospects – which in turn can have a significant impact in weathering financial uncertainty or landing new jobs.
"This is when we don't necessarily control the external environment," Kleiman said. "So we can control things, such as making sure you stay social and eat as nutritiously as possible - viewing your body as a valuable resource to manage, rather than a "pouring field that pours over emotional stress."
In the best case scenario, people can learn new skills and become a better version of themselves after financial setbacks, Kleiman said.
This is usually not an opinion that customers hear when they are troubled. "I have a lot of clients who get angry with me," she said.
But she said she also saw people stop seeing themselves as victims or making bad choices. People can learn to see themselves as “a heroic response to challenges and call on my strongest, best self.”
She said realizing these better self-enhancements can be enhanced. “Financial crises are often the gateway to let us look at money in different ways.”
Edited by Jane Greenhalgh