Can Financial Stress Cause Trauma?

Everyone experiences financial stress from time to time. An out-of-the-blue shopping splurge can put a toll on your budget, and while you may have felt good about it initially, once you’ve crunched up the numbers, anxious feelings may have overflooded you. While this is typically resolved relatively easily, what happens when this stress becomes too much to bear? In other words, it may be possible you’re suffering from financial trauma, yet you haven’t a clue about it! 

Financial trauma is a common personal struggle that affects your mental health, personal relationships, and overall quality of life. It can stem from various causes, and dealing with it is much more complex than “standard” financial stress. Overcoming financial trauma usually requires professional help, which can be done with a therapist in Sumter, SC.

Since signs of financial trauma and its impacts can be hard to recognize, we’ve created an in-depth article about it, including its causes and how to deal with it. By better understanding financial trauma, you’ll know which course of action is most suitable for you.

What Is Financial Trauma?

In essence, financial trauma is an emotional and psychological distress caused by negative financial experiences, severely impacting one’s overall well-being. Huge debts, constant monetary instability, and even sudden job loss can lead to this struggle, and its effects can leave a lasting impression in the form of crippling anxiety and scarred mental health.

Furthermore, you need to understand financial trauma is entirely different from financial stress most of us experience frequently. While the latter only has temporary setbacks that usually go away within a short timeframe, money trauma can linger long after the initial effect, causing doubts and anxiety about one’s self-perception and financial stability.

Another difference is that financial stress can usually go away on its own, meaning that dealing with it is relatively easy. On the other hand, because financial trauma can cause lasting effects, this struggle requires visiting Summerville counseling and even more self-care practices, some of which you’ll discover today.

Financial Trauma Causes

Financial trauma can be caused by an array of circumstances and factors, all of which have a subjective nature. In other words, you may have met someone who struggles with this “condition” just like you, yet different aspects caused it. 

One common factor is generational financial instability. People coming from long-running low-income families who struggle to make ends meet are typically more prone to it since it’s been going through generations. Limited resource access, educational opportunities, and career stability can make breaking free from the struggle challenging, so professional help is required.

Another reason why you may experience financial trauma is sudden job loss. The unexpectedness of it can overwhelm you with worry and anxiety, and the search for new employment is already stressful enough as it is. If these feelings persist and are left untreated, financial trauma is more likely to happen.

Finally, societal issues and the overall economic stability in your country can also contribute to the struggle. Not knowing how to manage money properly can lead to poor financial decisions, making the trauma, or rather its effects, long-lasting and severely impactful.

Signs Of Financial Trauma

As previously mentioned, everyone experiences financial trauma differently, and its treatment and support systems can vary. However, recognizing the signs of financial trauma is essential for identifying the emotional and mental impacts that stem from it.

Compulsive spending is one of the most common signs, usually characterized by poor monetary choices and excessive spending habits. While you may see this as a way to deal with financial stress, if persistent, it can make the difficulties and worries much worse in the long run.

Alternatively, frugality, or underspending, is also a sign of financial trauma. You may fear spending way too much, even when necessary, which may result in deep-rooted anxiety about your monetary stability and constant worry about falling into financial hardship. 

Avoiding financial matters may also point to the struggle as well. Not reviewing your statements, avoiding paying bills, and not engaging in discussions about money can be quite overwhelming, leaving a sense of insecurity and instability.

Finally, difficulty in managing finances properly, like not paying bills on time and going over your budget, is another prominent sign of financial trauma, resulting in further despair and distress.

How To Deal With Financial Trauma

As you’re aware by now, financial trauma can greatly impact your mental health, leading to constant feelings of worry, anxiety, and distress. It can also affect how you communicate, contributing to strained family dynamics and conflicting relationships. In some cases, money trauma can also be “shared” within a household, which is why many families opt for Columbia, SC, couple’s counseling.

With this in mind, overcoming financial trauma is not as simple as you initially thought, as you need a multi-faced approach that addresses both your mental health and overall well-being. Using practical methods such as self-care and professional help can help you manage the struggles properly and work toward financial stability and confidence.

Firstly, visiting a counselor is your best bet for overcoming financial trauma. They can guide how to create a realistic budget and stick to it, manage debt, and develop a stable, long-lasting financial plan. In addition, therapists in Sumter, SC, can help you navigate the emotional aspects of this burden and teach you how to create healthy coping mechanisms. Sharing the experience with groups of people who experience financial trauma can also be very beneficial, so you might want to see whether there are any support groups in your area.

Furthermore, don’t hide your feelings about financial trauma. Instead, talk about it in detail with people you trust, as they can be your pillar of support. Even the simplest conversation can go a long way, and if your closest ones are aware of your struggles, they’re more likely to keep you in check.

Lastly, self-care practices are an essential part of overcoming financial trauma. When the anxiety and stress seem too much to bear, engage in relaxing activities such as exercising, yoga, meditation, and so forth. Keeping yourself occupied will sway your mind away from financial stress, leaving you at peace.

Financial trauma can be very difficult to deal with, but rest assured, it’s completely manageable - you just need a helping hand! If you’re looking for Summerville counseling, don’t hesitate to get in contact. Together, we can overcome your struggles, and your financial burdens will be a thing of the past!