How Financial Health and Emotional Resilience Go Hand-In-Hand

Money problems can create an especially acute kind of stress. Not only do they cause worry about meeting today’s obligations and anxiousness about the future, but they can cause us to relive deep fears from the past.

Shawna Humbert found herself unemployed after a new career path ended in disappointment. But, as she told CNN, the worst thing about her precarious financial position was how it dredged up strong emotions from her childhood. Growing up in a family with few resources and no financial know-how, Humbert had lived with the constant fear that the electricity would be cut off because they couldn’t pay the bill. But even worse than reliving that anxiety was the shame she felt because of a broken promise to herself. Humbert had vowed that she would never again put herself in that helpless situation.¹

Just as issues surrounding money can cause strong feelings, those emotions themselves can lead to poor financial decisions. For example, when you’re constantly in a state of panic about money, you’re less likely to give serious thought about the future.

Dr. Megan McCoy, a professor of finance at Kansas State University who specializes in the psychology of money, says, “We get this tunnel vision of avoiding the scarcity we once experienced, causing a lot of reactive behavior, because we’re just trying to make sure now, we’re OK.”

Simply reacting to your current circumstances can lead to further financial problems and even more unhappiness.

“Fear and shame are terrible financial advisors,” says Elizabeth Husserl, an advisor and financial author. She says that before you can make sound money decisions, it’s essential to first address the emotional side.

Fortunately, the way out of this cycle doesn’t require a spending plan that’s so locked-down you feel deprived. Instead, you should follow a budget that prioritizes what’s most important to you. One that you will be internally motivated to follow.

If your spending plan enables you to enjoy life now as well as gain financial security for the future, it will help build your personal resilience—something necessary for both emotional and financial well-being.

It’s important to remember that financial health is built step-by-step. The beauty of a long-term plan is that small things have time to accumulate and grow into big results.

As your trusted advisor, our role is to support you as a whole person, not just manage your investments. Life is full of unforeseen challenges as well as unexpected joys. We are committed to helping you build the financial and emotional resilience that make life so much more enjoyable.