Emotions can affect how you feel about different scenarios and your response to them, including when you’re making financial decisions. Improving your emotional resilience could mean you’re better equipped to handle stressful situations. Read on to discover why and how it might support your financial goals.
Emotional resilience simply refers to your ability to adapt and deal with stressful situations. It could help you remain level-headed even when you’re facing challenges.
It’s not about repressing your emotions, but recognising them and not letting them rule your decisions. As a result, it may be a valuable skill in your day-to-day life as well as when you’re managing your finances.
Here are five ways you could improve your financial resilience.
1. Give what you do a meaning
Giving your actions a meaning could be hugely valuable. Indeed, a purpose could improve your resilience and mean you make better lifestyle choices.
Day-to-day that might mean finding a purpose in your work or social life. For instance, what motivates you to work, or what brings you joy in your free time?
When it comes to your finances, you can give your decisions a purpose too. When you’re setting money aside having a goal could mean you’re more motivated.
For instance, while you might make a pension contribution each month, it’s easy to feel disconnected from your retirement savings as the milestone could be decades away. So, taking some time to understand how these contributions will add up and what it could mean for your future might be useful. It may also mean you’re less likely to act on potentially harmful emotions, such as selecting a low-risk approach to investing because you’re worried, even if you’re circumstances mean more risk could be appropriate.
2. Focus on the positive
When you’re faced with a challenge, it can be easy to overlook the positives in a situation. Someone who is emotionally resilient is more likely to look for the silver lining even while acknowledging there are negatives.
It’s a strategy that could help stressful situations feel more manageable and mean that you’re in a better mindset to tackle what you need to do or make decisions. Next time you’re experiencing negative emotions like stress or worry, try to look on the bright side.
3. Be self-aware
One of the biggest challenges of managing your emotions is recognising when they could be harming your approach to the situation.
Being self-aware and understanding the effect your emotions are having could help you rein them in when appropriate. Asking yourself questions in the moment could help you reassess situations and come up with a solution that’s right for you.
So, trying to be more self-aware could be useful. There are many different ways to do this. You might find that when your emotions are heightened, taking a quick break from a task or decision gives you the space you need to become more level-headed. Some people find that keeping a journal provides them with a great opportunity to reflect on their day and recognise patterns.
4. Discover how to regain your sense of calm
Even with emotional resilience, there will be times when emotions like stress and fear will affect you.
Knowing what steps you can take to regain your sense of calm and feel in control again could be immensely useful. There’s not a single solution to lowering your blood pressure, so try different activities and find something that works for you. Some might find that quietly reading a book puts them at ease, while, for others, getting active is the perfect way to beat stress.
It could mean next time you feel that emotions might be affecting your decisions, you know what steps to take to regain your sense of calm.
5. Have someone you can turn to
When you’re struggling with emotions, having the right support network around you could make all the difference.
Having someone listen to you might help you keep your emotions in check. In your day-to-day life, those people might be your family, friends, or colleagues. They could also be a valuable source of support when you’re facing challenges around financial decisions.
In addition, your financial planner may also be someone you want to turn to in these circumstances. As they understand your financial position and goals, they could offer tailored advice that helps you assess situations with your circumstances in mind and formulate a plan that suits your needs.
If you’d like to talk to one of our team about your financial plan, please get in touch.
Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.
