These tips are from Chicago psychologists Dr. Carolyn Friend and Dr. James Weiner.
1. Take a deep breath. This simply means that now is the time to get your emotions under control as much as you possibly can. Your financial and personal worlds may be in great upheaval, but now is the time for clear-thinking. Remember, you can only make wise decisions when you are thinking above the chaos.
2. Take a vacation from the news. Once you get your emotions under control the best you can, take a break from those things that are feeding into your anxiety. Watching hour after hour of hysteria-filled financial news reports or reading hundreds of on-line news stories with gloom-and-doom headlines only reinforce your fear and anxieties. Give yourself a goal: See how the market opens, and then see how it closes. Better yet: See how the market opens on Monday, and then see how it closes on Friday and avoid anything in between, if possible.
3. Gather facts and information. Decide on exactly what information you need day-to-day to make an informed decision and what your sources will be. Do you need to consult your financial advisor, consult the stock ticker? How often do you really need to gather information? Decide this before you begin and stick with it. Don't be swayed by your fear or anxiety. Knowledge is not only power, but it reduces fear and anxiety to much more manageable levels.
4. Use what you already know. Be confident that your past experiences will guide you to the right decision for you today. This financial crisis is just like past upheavals you have lived through. Apply your guiding principles. These will help direct your actions.
5. Devise a plan. Now that you've gained a fresh perspective and gathered your facts, it's time to develop a strategy. Make a plan incorporating three different scenarios based upon the information you have gathered. Look at the financial challenges from as many different perspectives as possible before solidifying your final plan of attack. Knowing you have a plan and a couple of back-up plans will not only relieve your fear and anxiety, but it will also give you the foundation for the next step.
6. Discuss your options. Stop fear and anxiety from running rampant. Talk. Let your family know the facts of the situation (make sure your discussions are age appropriate) and what you plan to do about it. Also, discuss with your co-workers, if necessary, what your course of action is and why you chose this path. Keeping everyone in the loop builds stronger relationships and reduces panic.
7. Make the move. You've attained a sense of clarity, taken a quick break, gathered information, devised a plan, discussed your options with the people around you. Now, it's time to make the move. Implement your plan, quickly and decisively - and stick with it. Unless there is a major shift in the markets or new information has come to light, stick with this plan as long as possible. You'll feel in control and more confident about your financial and personal future.
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