Navigating Mental Health Challenges With Therapy During A Recession
While a recession often has a negative impact on a person’s financial well-being, it can also affect their mental health. When a recession hits, families and individuals may experience reduced cash flow, resulting in having less money available. Financial difficulties can contribute to stress, anxiety, and depression, which can make it more challenging to overcome financial hardships.
Various strategies can improve mental health, even during times of economic uncertainty. Building a recession-proof mindset by practicing mindfulness techniques or connecting with a therapist may be especially helpful. In this article, we will examine the mental health challenges associated with a poor economy and explore ways to improve mental health during a recession.
Mental health impacts of a recession
Recessions may trigger both emotional and psychological challenges that can compound existing mental health conditions or contribute to the development of new ones. These impacts may result from feeling overwhelmed about the future or having concerns about income or job loss. Individuals may experience stress and anxiety, which can lead to trouble sleeping, increased irritability, and difficulty concentrating.
Depression may also deepen during economic downturns, particularly when financial statements continue to roll in, but future income and job security may not be guaranteed. The uncertainty of the future, coupled with social stigma around financial hardship, can lead to isolation and shame. This may impact different groups of people in various ways. For example, parents may feel guilty about not being able to provide for their families, while young adults may become disillusioned with the lack of jobs, and older workers may become concerned about the feasibility of retirement.
The importance of cultivating a recession-proof mindset
During a recession, it can be important to pay attention to spending, conduct economic research, connect with a financial expert, and focus on ways to make more money. In addition to these practical steps, it may also be helpful to cultivate a recession-proof mindset, which may involve practicing gratitude and developing adaptability. This type of mindset often focuses on resilience and long-term thinking, even when short-term circumstances are tough.
Developing a long-term, recession-proof mindset may involve the following strategies:
- Gratitude: Focusing on what an individual has instead of what they do not have can change their perspective during hard times. Gratitude may also reduce stress and anxiety caused by financial hardships.
- Reframing negative thoughts: During a recession, it can be common for people to develop negative beliefs, such as “This will never get better,” or “I am stuck in this situation.” Replacing these thoughts with ideas like “Times are hard now, but they will get better in the future,” can be a way to improve mental health and one’s outlook on the world.
- Practicing self-compassion: Understanding that economic struggles are not a personal failure can help individuals care for themselves during a recession.
Impacts of financial stress
The impacts of financial stress can be wide-ranging and may occur whether or not a recession is occurring. Mental, social, and physical health impacts can vary in severity from person to person, depending on their unique personality and life circumstances.
Mental health impacts
Mental health impacts of financial stress may include sleep difficulties, increased irritability, and depression. In some cases, impacts like stress and irritability can make it challenging to sleep, which may increase irritation in a positive feedback loop. Over time, these symptoms can erode overall mental resilience and make it harder to function effectively in daily life.
Social and physical impacts
Financial stress may also impact a person’s social life. During times of financial hardship, some may experience shame or guilt, potentially leading them to avoid social situations and become isolated, which can further impact mental health. For some, there may be feelings of shame and guilt associated with financial stress, which may lead them to avoid seeking support.
Physically, a person under financial stress may experience symptoms similar to those associated with other types of stress. These stress symptoms can include an elevated heart rate, increased blood pressure, and a higher risk of cardiovascular disease. A person may also experience muscle tension, which can lead to headaches and joint pain.
Reducing anxiety by managing cash flow
During a recession, an individual may be able to cope with anxiety and other mental health impacts by developing a strategy to manage money and cash flow. This can involve techniques to increase income or decrease spending, which may put a person in greater control of their finances. Below are some strategies for managing cash flow and creating a resilient mindset during a recession.
Strategies to manage cash flow
Financial challenges can be mitigated with money management strategies. It may be helpful for individuals to connect with a financial professional who can provide personalized advice and guidance for saving money. In general, maintaining a budget and planning for upcoming spending is helpful.
Creating a recession-proof mindset
Outside of implementing money management strategies, it can be helpful to develop a recession-proof mindset. This can involve staying grounded and thinking clearly during times of uncertainty. While money problems can seem overwhelming, a strong mindset may help individuals approach challenges with flexibility, confidence, and focus rather than fear.
Strategies to improve mental health during a recession
Although economic uncertainty cannot be eliminated completely, individuals can take actionable steps to improve their mental health and well-being during a recession. These strategies, which can be supported by various therapeutic approaches, can help a person build emotional resilience and regain a sense of control. Strategies to improve mental health during a recession include the following:
- Establishing a routine: A consistent daily routine can create structure and predictability during uncertain times, which may reduce anxiety. It may be helpful to create habits like waking up at the same time each day, taking regular walks, and setting aside time for reflection.
- Limiting news and social media: Constant updates on the state of the economy from the news and social media can increase overwhelming feelings and stress. It may be helpful to schedule a certain time of day to check these outlets for economic news rather than consuming news all day, every day.
- Connecting with a support network: During a recession, individuals may become socially isolated, leading them to believe they are alone in their challenges. Connecting with friends and family members can be empowering, and talking openly about challenges can be grounding and healing.
- Practicing mindfulness: Mindfulness, breathing exercises, and grounding strategies can calm racing thoughts and reduce stress. These tools may be implemented as both short- and long-term strategies to reduce the impact of financial stress on a person’s daily life.
- Prioritizing physical health: During periods of elevated stress, it can be beneficial to prioritize physical health by getting regular exercise, prioritizing quality sleep, and maintaining nutritious eating habits. Incorporating these physical health practices can reduce anxiety and stress, enhancing overall mood and mental health.
What to look for in a therapy practice
As a business model, mental health services tend to be resilient, even during poor economic conditions. While many businesses are negatively impacted by a recession, therapy and mental health services often see an increase in demand due to heightened needs during challenging economic times. For individuals in search of a new therapy practice, it may be important to consider a therapist’s area of expertise and take time to connect with multiple therapists to find a good fit.
Therapy practice specialization
Different therapists specialize in different aspects of mental health. When looking for a therapist during a recession, it may be beneficial to find a professional with expertise in managing financial stress and anxiety. A therapist can recommend mindfulness strategies and implement therapeutic techniques like cognitive behavioral therapy (CBT), which can help a person identify and reframe negative thought patterns to positively impact their emotions and behaviors.
Connecting with multiple therapists to find the right fit
It can be helpful to connect with many therapists to find one who suits an individual’s preferences and mental health needs. During this search, it can be important for a person to ask questions and learn about each therapist’s style and expertise. While meeting with many different therapists in person can be a logistical challenge, online therapy options can make the process easier and more efficient.
How can therapists help during a recession?
During a recession, therapists can consider a person’s full mental health history, combined with current financial stressors, to evaluate, diagnose, and treat mental health conditions. However, for those with busy schedules or transportation challenges, attending in-person therapy sessions at a brick-and-mortar office isn’t always feasible. Online therapy can take place from any location with a personal device and an internet connection. This empowers individuals to receive the support they deserve from a comfortable location and at a time that suits their schedule.
Online therapy can be an effective way for individuals to reduce stress and anxiety related to a recession while improving overall mental health. Research supports the use of online therapy as an effective alternative to in-person mental health care.
Takeaway
Recessions and financial downturns can negatively impact a person’s mental health, often leading to anxiety and stress about money. During a recession, it may be beneficial for a person to incorporate mindfulness techniques, such as practicing gratitude or meditation, in order to develop a positive mindset. Meanwhile, consulting a financial advisor can offer practical guidance. It may also be helpful to connect with a therapist online or in person to reduce anxiety and stress.
Who suffers the most during a recession?
During the Great Recession, which took place from June 2007 to December 2009, the groups of the labor market that were most affected included men, black and Hispanic workers, young workers, and less educated workers. These groups were more likely to face unemployment and economic hardship. However, this may not hold true for all recessions.
What are the mental health outcomes in times of economic recession?
According to a 2016 systematic literature review, evidence suggests that economic recessions, unemployment, income decline, and unmanageable debt are associated with poor mental well-being, as well as increased rates of common mental health disorders, substance use disorders, and suicidal behavior. If economic stress is impacting your mental health, seeking treatment can help you learn effective ways to cope. Many mental health professionals offer sliding-scale fees to new clients who struggle to afford mental healthcare.
What is the most painful effect of a recession?
Unemployment is often viewed as the most painful effect of a recession. When people are unemployed, it can be extremely challenging to pay bills and have enough money to cover expenses. Many people resort to taking out more credit at high interest rates.
Is a recession a very long depression?
A recession is typically defined as two consecutive quarters of declining gross domestic product (GDP). Meanwhile, there is no specific definition for a depression, but it’s generally seen as being much more severe than a recession.
How do you survive a depression or recession?
Sticking to a budget, building up an emergency fund, living within your means, and choosing not to spend money on large purchases may be helpful. For personalized guidance, consult a financial advisor.
What should you avoid during a recession?
In general, opening a new line of credit isn’t wise during a recession. Co-signing a loan, making risky investments, and making unnecessary purchases are a few other actions to avoid.
How does a recession affect me personally?
Recessions affect everyone differently. You may be impacted by the rising cost of goods, or you could lose money on investments, for example. In terms of your psychology, your mental health and energy levels could decline due to stress during a recession.
Can a recession lead to depression?
According to a 2021 literature review, there appears to be a significant relationship between periods of economic recession and depressive symptoms, self-harm, and suicide. It can be vital to protect your mental health by practicing self-care and seeking professional support if needed. A once-a-week or even once-a-month therapy session may provide you with the guidance and support you deserve to navigate challenging times.
How does an economic crisis affect mental health?
Economic crises often lead to increased depression symptoms and exacerbated mental health disorders. High stress levels can also be common. If you happen to experience negative mental health impacts related to an economic crisis, don’t hesitate to reach out for support.
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