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How to cope mentally and practically when you are stressed after a sudden financial shock

Posted on April 22, 2020

When left with the financial consequences of an impactful life or/and societal event such as Covid-19, it is important to not get stuck in an inactive or negative mind-set. Instead, you can try to allow yourself two things: 1) some images of you (and your loved ones) in a better near future situation, and 2) a plan to make that happen. What are enabling and energizing actions to cope with a new and challenging financial situation? Read here what those are.

The behavioral science behind this is that picturing a brighter future helps with:

a) managing or reducing current stress levels. Having a (written) financial plan has shown to reduce stress levels.

b) your motivation for (financial) planning and setting goals. Setting (financial) goals and breaking them down into smaller steps (week by week) will encourage you to take action and show positive behaviors.