Unemployment effects and ways to solve money problems

Recently a growing number of Americans have experienced job loss due to recessions, downsizing, and business restructuring bent on financial survival. Loss of employment and financial difficulties rank amongst the more severe stressors that people encounter. Economically our jobs are all on fault lines, the financial outlook for many is grim and for some devastation has already been felt. It is a difficult time of year regardless of your employment or lack of but when you lose a job mere weeks before Christmas and the New Year it is felt that much harder.

Emotional Stress and Unemployment

Research since the 1930s reveals that unemployment has major effects on individuals’ and families’ emotional and physical health. Researchers have found strong relationships between unemployment rates and increased mental hospital admissions, suicide, homicide, total mortality, and cardiovascular-renal disease mortality (Brenner, 1973, 1976, 1977). Unemployment also contributes to greater depression and lower self-esteem (Waters & Moore, 2001) and to family instability, decreased family relations, and family violence (Furstenberg, 1974; Hanisch, 1999; Voydanoff, 1978).

Whether you are the main provider of the family or a form of extra income the loss of the money appears staggering. Your family’s dependence on you can affect your emotional reaction. Too often loss of work is viewed only in terms of desperation, worry and stress; surprisingly, there are a few pros to the sudden change.

Consider for a moment the amount of time the job took from your everyday life. Your family, whether it be your partner, children or both can now fill some of those free hours. It is a chance to reconnect with those around you and reacquaint yourself with your loved ones.

Generally, you will have opportunities to claim compensation for your loss. Although these amounts can seem offensive they will help as you look for other means of income. Using and investing this money wisely is your first step in lessening your stress. Review your home projects and consider remodeling; now is a good time to put your money into your home, and to use the project to keep your mind from envisioning worse scenarios.

Career Change

Now is an excellent time to review your career choice and make changes if you are willing. The time you have gained with your job loss can be used to look into other options, upgrade your education in your current field or perhaps find a new path entirely.

Casualties of Job Loss

It would be wrong to not acknowledge the cons of the situation. However, when the cons present themselves you must take into consideration the pros and not allow yourself to become entwined with the emotional distress that cons can inflict on you.

After losing their job, a person has to reorganize their value system and think about what things are important to spend money on, and what areas of their personal budget can be cut. You may have to forgo some of the more frivolous aspects of your life but this is not to say that you won’t have the chance to enjoy them again in the future. Review your budget beginning by listing the necessities and from that point decide what extras can continue and what ones need to be cut.

Experiencing feelings of poor self worth is a common problem when you have lost your job. Not allowing yourself to revel in those feelings is imperative to your mental health and your family bonds. Try to use your time wisely; accepting and providing help within your own household is an excellent way to start.

Be especially alert to how your stress is effecting your family. Sadly, statistically these are the times we jeopardize all that we work for and too often we lose sight of what is important. You may not have been able to control what happened to your work, but it is within your control to keep it from hurting you and your family.

3 Quick Ways to Solve Money Problems

Solving your money problems will decrease stress and anxiety, which will help you stop the debt cycle. Researchers have discovered that financial stress can lead to spending more money and creating more debt (instead of less!).

Here’s how money worries increase your spending habits, plus three ways to solve your money problems and decrease financial stress.

How Money Worries Increase Spending Habits

In her survey, psychology professor Karen Pine of the University of Hertfordshire found that 79% of women said they’d go on a spending spree to cheer themselves up if they were in a financial crisis. Pine’s research leads her to conclude that women use shopping to avoid negative feelings or life dissatisfaction.

Ironically, worrying about money could lead women to spend more, and get further into debt.

Solving your money problems not only takes the pressure off you and your family — it can keep you mentally and emotionally healthy, too.

3 Ways to Solve Money Worries

To stop stressing about your finances, you need to stop emotional spending.

Learn the difference between need and stress. Emotional spending is similar to emotional eating: it avoids the cause of the problem and creates problems in the long run. To stop creating more debt, tune in to your stress levels and ways of handing anxiety. Learn when you’re spending because you’re stressed, or spending because you genuinely need the item.
Don’t buy the item for five days. When you’re tempted to spend money you don’t have, give yourself a five day “cooling off” period. You’ll be surprised at how often you realize you don’t want the item five (or even one) days later.
Deal with your triggers. Does arguing with your partner about money problems compel you to shop and spend money you don’t have? Or maybe your shopping habits are triggered by problems at work or with your kids. Whatever your triggers are – find other, healthier, ways to cope.

Solving money worries involves taking action, whether that means dealing with your emotional shopping tendencies or making a household budget and sticking to it. New habits like these take time to develop, but – once implemented – they will reduce your financial stress!