Financial PTSD is “a dysfunctional reaction to an abrupt financial loss” or “the chronic stress of having inadequate financial resources”. Symptoms of financial PTSD are similar to those who experience PTSD from other events, such as re-experiencing the traumatic event through flashbacks or nightmares, avoidance and emotional numbing, difficulty falling asleep, trouble with concentration, depression and hopelessness, as well as anger and irritability.
Financial trauma is real. And it is often the string of events that follow, the inability to pay, which causes that trauma. The 4Ds that lead to financial trauma are categorised by Psychology Today as Debt, Dependency, Distrust and Denial.
Debt
Let’s put things into this scenario: you’re spiralling into debt and only going deeper into it. When you receive a call from someone, it makes you feel wary. Your previous trauma overcomes you, making you feel vulnerable and anxious, knowing that someone out there – most likely a creditor – may want something you owe. Something that you are unable to give back.
Dependency
When you feel vulnerable, you tend to reach out for support. You start thinking, “Who can I seek help from? Who can I call on and trust? A stockbroker? A financial advisor?” You end up reaching out to every go-to person in finance that might be able to provide you with a solution.
Distrust
Then you start reading the news more for the latest updates and find that the economy is constantly changing. It makes you feel uncertain like you can’t depend on anyone anymore because you don’t know what’s happening and have nothing under control.
Denial
It causes you to become more vulnerable, pushed to irritability and fragility. You start running away from the problem, saying things like, “I’d rather not think about it,” or “I’ll just deal with it later.” This happens because of fear. People fear they’ll be sucked back into that trauma of financial instability and risk falling apart.
These 4Ds that cause financial PTSD are more rampant now than ever, especially among millennials.
How do we treat financial PTSD?
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Getting professional help for financial PTSD symptoms is good if it is within your means. However, this may not always be possible when your health insurance does not cover that.
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Rebuild a healthy relationship with money once more. Reduce credit card debt and manage and plan your expenses based on a budget. This can help you gain a sense of control over your finances.
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Seek social support. Overcome that feeling of shame by opening up to friends and family. Bottling up your stress and concerns will only cause you to spiral further and worsen your financial PTSD in the long run. Social support can also lend you perspective and make you feel less isolated when you realise that other people are going through – or have gone through – similar financial hardships as you have.
Financial PTSD and the workplace
On a larger scale, companies should also do their part to combat financial trauma, as every employer should strive for a healthy and happy team. Moreover, financial PTSD and productivity share a critical relationship that contributes to the well-being of a company.
With the world trying to tiptoe its way back to a more robust and more stable economy, financial PTSD is a reality that we must now acknowledge and work hard to address. Although there’s no single method of becoming financially healthy, try to find what works best to regain your confidence with money to achieve your desired life. You deserve to look forward to a future without having your financial burdens weigh you down.
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