Financial trauma can cause negative thoughts, flashbacks and anxiety — symptoms that mirror post-traumatic stress disorder, or PTSD. Unlike everyday stress, however, experts say trauma doesn’t wax and wane. How to deal with financial trauma:
Rahkim Sabree owns a home in Hartford, Connecticut, invests and has money in savings. But that isn’t always enough to make him feel secure. Unexpected expenses, regardless of the cost, bring him discomfort.
Financial trauma can cause negative thoughts, flashbacks and anxiety — symptoms that mirror post-traumatic stress disorder, or PTSD. Unlike everyday stress, trauma doesn’t wax and wane. It ends up injuring your relationship with money, said Thomas Faupl, a financial therapist in San Francisco. Any painful experience involving money can make you feel unsafe, said Aja Evans, a financial therapist in New York City. This often leads to negative thoughts, she explained, such as “I’ll never have enough money” or “I’ll never be good with money.”
“I had a lopsided relationship with money,” she said. Chapman said that she feared debt but that her desire to belong with a wealthier crowd had made her spend beyond her means. Trauma turned her into a people pleaser, she said, adding, “I thought I had to look a certain way to be accepted.” Griffith has seen an upswing in financial trauma among some of her clients. In 2009, some people lost up to 40% of their retirement savings. Now, with the possibility of another downturn, they’re worried about a recurrence. This can make people fear the risks that come with investing, Griffith said, prompting them to cash out their investments or retirement accounts too soon.
People who avoid money can take tiny risks, such as pushing themselves to spend $10 or $20 on a joyful experience. Melkumian calls this “mandatory splurging,” and said it was one way to step out of your safe zone. It’s doing the opposite of what the negative emotion is telling you to do, he said.
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