Dealing with Recession Anxiety
Economic downturns affect more than just finances—they can take a serious toll on your mental health. Uncertainty about jobs, investments, and the rising cost of living often leads to heightened anxiety. During a recession, even the most stable individuals can experience feelings of fear, helplessness, and overwhelm. But while you may not have control over the economy, you can take steps to manage your anxiety and protect your mental well-being.
1. Acknowledge Your Emotions Without Judgment
The first step to managing anxiety during a recession is to name what you're feeling. Are you afraid of losing your job? Worried about paying bills? Feeling guilt or shame for not being “prepared”? All of these are valid emotions.
Instead of judging yourself for feeling anxious, try to accept those emotions as a natural response to a stressful situation. When you allow yourself to feel without resistance, you reduce the added layer of shame or self-criticism that often worsens anxiety.
Try this: Pause and take five deep breaths. Say out loud, “It’s okay to feel anxious. I’m going through something hard, and my feelings are valid.”
2. Limit News Consumption
Staying informed is important, but constant exposure to negative headlines can amplify anxiety. Economic news is often framed to get attention—it’s dramatic, urgent, and sometimes speculative. This 24/7 stream of worry can keep your brain in a heightened state of stress.
Set clear boundaries around when and how you consume news. Pick one or two trusted sources, and check updates only once a day. Turn off news alerts on your phone and avoid doomscrolling on social media.
Try this: Set a 10-minute news check-in time once per day, then shift to something uplifting—like a podcast, walk outside, or calming playlist.
3. Focus on What You Can Control
Anxiety thrives on uncertainty, and recessions create a lot of it. Instead of getting stuck in "what ifs" about things you can't control (like the global market), shift your focus to what you can do. Even small actions can bring a sense of agency and calm.
This might mean reviewing your budget, seeking financial advice, updating your resume, or starting a side project to generate income. The goal isn't to solve everything at once, but to take manageable steps that move you forward.
Try this: Make a “control vs. concern” list. On one side, write what’s in your control (e.g., your spending, job applications). On the other, write what’s outside your control (e.g., interest rates). Spend your energy on the first column.
4. Build a Support System
Anxiety often feels isolating, but you're not alone. Millions of people feel the same financial and emotional strain during a recession. Talking about your worries with others can reduce their power and help you feel connected.
Reach out to friends, family, or coworkers you trust. Even a brief conversation can bring relief. If you're part of a community group, church, or online support network, don’t hesitate to lean on those relationships.
If your anxiety is persistent or interfering with your daily life, consider speaking with a therapist. Many offer sliding scale fees or online sessions, which can be more affordable during financially tight times.
Try this: Text a friend and say, “Hey, can we talk sometime soon? I’ve been feeling really overwhelmed lately and could use a listening ear.”
5. Practice Grounding and Mindfulness Techniques
Anxiety pulls your thoughts into an imagined future filled with worst-case scenarios. Grounding techniques can bring you back to the present moment, where you have more clarity and calm.
Mindfulness doesn’t have to be complicated. Simply noticing your breath, focusing on your five senses, or saying an affirmation can reduce stress and re-center your mind.
Try this: Use the 5-4-3-2-1 grounding technique. Name 5 things you see, 4 you can touch, 3 you hear, 2 you smell, and 1 you taste. It brings you out of your head and back into your body.
6. Prioritize Basic Self-Care
In high-stress times, basic self-care can fall by the wayside. But when your body and mind are already under strain, taking care of the essentials—like sleep, hydration, nutrition, and movement—is crucial.
Even small improvements in these areas can help your nervous system regulate better, giving you more resilience to face the emotional weight of economic stress.
Try this: Choose one small self-care goal to focus on this week. It might be drinking 8 glasses of water, getting 7 hours of sleep, or taking a 10-minute walk after lunch.
7. Reframe Your Thoughts
Recessions often trigger catastrophic thinking. You might catch yourself thinking, I’ll never find another job, or This is going to ruin everything. These kinds of thoughts escalate anxiety and make it harder to take productive action.
Reframing doesn’t mean pretending everything is fine—it means adjusting your perspective to something more realistic and empowering. For example, instead of “I’m going to lose everything,” try “Things are hard right now, but I’ve faced challenges before and gotten through them.”
Try this: When you notice an anxious thought, ask: Is this absolutely true? What’s another way to look at this situation?
8. Make a Financial Action Plan
A clear, realistic financial plan can reduce uncertainty and give you a sense of direction. Even if things are tight, having a plan helps you make decisions with confidence instead of fear.
Start by reviewing your income and expenses. Look for areas where you can cut back or delay spending. Then, brainstorm ways to increase your income or access support—like side gigs, government aid, or community resources.
If finances are a major source of stress, don’t hesitate to seek help. Free financial counseling is available through nonprofits, banks, or online organizations.
Try this: Download a free budgeting app and commit to tracking your spending.
If you or someone you care about is feeling overwhelmed by financial stress or anxiety during this recession, consider reaching out to a mental health professional who can help you navigate these challenges with practical tools and compassionate support.
