Keep Your Sanity, Even During Tough Financial Situations

When you are faced with a financial disaster, or when the economy worries you with its performance, it’s important to keep your sanity. Some of the worst decisions that we make are based on fear. You can’t make good decisions about your finances if you are ruled by worry.

Market analyst and mathematician Lambros Klouvidakis has been watching markets, and he has developed a formula (Semathy) for predicting ups and downs. While I’m usually skeptical of formulas that claim to provide market predictions, Klouvidakis does have some good advice about maintaining your sanity even in times of financial difficulty. Here are his 5 tips:

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1. Focus on Problem-Solving

“Rather than wasting energy trying to blame someone or something, focus your efforts on problem-solving,” says Klouvidakis. It’s tempting to wallow in self-pity in tough times, and blame losses on external factors. Even if your financial situation is in upheaval because of outside forces over which you have no control, don’t just through your hands up. Make a plan to solve the problem.

2. Look at What You Have

It’s not just about your net worth. Klouvidakis points out that you have human assets, including skills and expertise, that are about more than just your bottom line. Tote up your human assets, and then figure out how to use them to help you get through this time.

3. Ask for Advice

“During times of stress, the support of friends and acquaintances is critical,” says Klouvidakis. Not only can you receive support and encouragement during this time, you can also receive solid insights from those who might be able to offer valuable advice. The help of someone who has been in the same position before can be especially valuable. Even though it’s hard to reveal your shortcomings and vulnerabilities, getting help can be one of the best ways to retain your financial sanity.

4. Be Flexible

It’s hard, during times of uncertainty, to be flexible. “We often cling to the very things that hold us back,” says Klouvidakis. Don’t dig into a position or course of action that limits your choices and that can potential damage your finances further. Now is the time to be flexible. “Income changes require that we prepare for a journey of uncertainty,” Klouvidakis points out. Be ready to go with the flow and seize new opportunities as they arise.

5. Remember Your Family

Rather than pulling back from your family, Klouvidakis recommends that you draw closer. “Stay involved with your family and create stability at home,” he says. Quality family time can take your mind off your financial woes, and it can also help you clear your head and figure out our a game plan. If you don’t pull together as a family during the tough times, there is a good chance that things will get worse for your relationships. Now is the time to create a strong front.

Bottom Line

Nearly all of us have to worry about money at one time or another. Rather than succumbing to the concerns, take steps to remain connected to your loved ones and make a plan to get out of your mess.

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Miranda is a freelance writer and professional blogger. She writes for a number of personal finance blogs, including Planting Money Seeds. She has a M.A. in journalism, and is the author of Confessions of a Professional Blogger. Miranda lives Utah, where she enjoys spending her free time reading, traveling and playing with her son and husband.

Last Edited: 6th September 2013


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  1. says

    Tough financial times should also be times of reflection on the direction our lives are taking financially and otherwise. It is a time to see where we might have gone wrong in the past and seek rectifications. And ofcourse, its time to huddle up more as a family…at the end of the day, financial tough times come and go but families are forever, or somewhere close.

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