What is financial trauma? How to deal with it?

Money is a tool to achieve security, identity and meet basic needs. But its scarcity or absence leads to lack of satisfaction or over-satisfaction of future needs. All these aspects affect the relationship between money and people.

Money is a tool to achieve security, identity and meet basic needs. But its scarcity or absence leads to lack of satisfaction or over-satisfaction of future needs. All these aspects affect the relationship between money and people.

“People’s relationships with money and their spending patterns say a lot about their childhood and how much their needs were met at that time,” explains Dyutima Sharma, clinical psychologist and the co-founder of Orange Owl Percepts. In many cases, the scarcity of money leads to anxiety and mental health issues called financial trauma.

“People’s relationships with money and their spending patterns say a lot about their childhood and how much their needs were met at that time,” explains Dyutima Sharma, clinical psychologist and the co-founder of Orange Owl Percepts. In many cases, the scarcity of money leads to anxiety and mental health issues called financial trauma.

“There are two-three ways of financial trauma, one is when you have money and the other is when you lose it. Inability to achieve self-set targets to earn money also causes anxiety and trauma. People who are unemployed or underemployed are its biggest victims,” ​​said Bhopal-based psychologist Dr Kakoli Roy.

“There are two-three ways of financial trauma, one is when you have money and the other is when you lose it. Inability to achieve self-set targets to earn money also causes anxiety and trauma. People who are unemployed or underemployed are its biggest victims,” ​​said Bhopal-based psychologist Dr Kakoli Roy.

Impact of financial trauma

One of the effects of financial trauma is an inferiority complex. People are facing emotional distress because they are not getting a job or income as they expected.

Impact of financial trauma

One of the effects of financial trauma is an inferiority complex. People face emotional distress because they cannot get a job or income as they expected.

“Everyone is doing well and I’m not. When this comparison comes, then the trauma begins. The trauma is an emotional thing, but because of these expectations, whether because of comparison, or trust, then there is trauma because of finances.

“Everyone is doing well and I’m not. When this comparison comes, then the trauma begins. The trauma is an emotional thing, but because of these expectations, whether because of comparison, or trust, then there is trauma because of finances.

A person’s financial confidence affects his personality as well as financial-related decisions, explains Dr Kakoli Roy. “Financial dependence limits a person’s ability to make money decisions on their own. If a woman without income wants to go to a parlor or wants to buy something, then she is reluctant to ask or at least think of her husband or parents before making such decisions.

A person’s financial confidence affects his personality as well as financial-related decisions, explains Dr Kakoli Roy. “Financial dependence limits a person’s ability to make money decisions on their own. If a woman without income wants to go to a parlor or wants to buy something, then she is reluctant to ask or at least think of her husband or parents before making such decisions.

In severe cases, financial trauma often leads to suicide. Cases of farmer suicides due to crop damage and loss are the result of financial trauma. Farmers who are in debt and facing loss of crops feel helpless. “Inability to get consultations due to lack of money leaves their trauma untreated and often leads to depression and suicide,” said Dr Roy.

In severe cases, financial trauma often leads to suicide. Cases of farmer suicides due to crop damage and loss are a result of financial trauma. Farmers who are in debt and facing loss of crops feel helpless. “Inability to get consultations due to lack of money leaves their trauma untreated and often leads to depression and suicide,” said Dr Roy.

Shame and avoidance are another result of financial trauma. People who lose their hard-earned money in business and gambling, often end up feeling guilty and unable to talk about it. In such cases, people are prone to alcoholism and drugs as well.

Shame and avoidance are another result of financial trauma. People who lose their hard-earned money in business and gambling, often end up feeling guilty and unable to talk about it. In such cases, people are prone to alcoholism and drugs as well.

Trauma can also lead to low self-esteem and self-doubt. One such example is a boy who wanted to pursue his music career but could not due to the loss of his father’s business during the COVID pandemic. He eventually gave up his dreams to support his family. Gradually his financial difficulties started affecting his relationships with friends and colleagues, recalls Dyutima Sharma.

Trauma can also lead to low self-esteem and self-doubt. One such example is a boy who wanted to pursue his music career but could not due to the loss of his father’s business during the COVID pandemic. He eventually gave up his dreams to support his family. Gradually his financial difficulties started affecting his relationships with friends and colleagues, recalls Dyutima Sharma.

How to handle financial trauma?

Besides working hard to earn more money. The best way to deal with anxiety and emotional stress due to financial situation is to talk about it, believes Dr Roy. “If you can’t achieve what you set out to do with money, try to shift your focus to emotional success or something else,” he says.

How to handle financial trauma?

Besides working hard to earn more money. The best way to deal with anxiety and emotional stress due to financial situation is to talk about it, believes Dr Roy. “If you can’t achieve what you set out to do with money, try to shift your focus to emotional success or something else,” he says.

Another way is to talk to friends and share feelings. No matter how bad you feel about yourself for your job, expenses, or anything else, it’s always a good idea to talk about it.

Another way is to talk to friends and share feelings. No matter how bad you feel about yourself for your job, expenses, or anything else, it’s always a good idea to talk about it.

Instead of isolating yourself from the rest of the world, it’s better to get out of the house, meet new people, and experience new things.

Instead of isolating yourself from the rest of the world, it’s better to get out of the house, meet new people, and experience new things.

Regardless of what people think about themselves early on, the best way to do well in the current situation is to adapt and lower expectations according to the situation. “Lowering expectations doesn’t happen overnight, people have to go out, adventure, and experiment with available resources, to make it happen.

Regardless of what people think about themselves early on, the best way to do well in the current situation is to adapt and lower expectations according to the situation. “Lowering expectations doesn’t happen overnight, people have to go out, adventure, and experiment with available resources, to make it happen.

How much do we talk about India’s financial trauma?

Given the amount of importance given to mental health issues in India, healing and even acknowledging financial trauma seems like a far cry. Sometimes, people don’t even recognize that they are dealing with money trauma in their daily lives.

How much do we talk about India’s financial trauma?

Given the amount of importance given to mental health issues in India, healing and even acknowledging financial trauma seems like a far cry. Sometimes, people don’t even recognize that they are dealing with money trauma in their daily lives.

“In many cases, people come to us and talk about what causes mental stress and emotional distress. Only after listening to them do we know the link between money and their trauma,” said Dyutima Sharma.

“In many cases, people come to us and talk about what causes mental stress and emotional distress. Only after listening to them do we know the link between money and their trauma,” said Dyutima Sharma.