Financial grieving is significantly distinct from other types of loss. Have you ever witnessed an ardent stock market day trader go underground when his trading accounts suffer a decline? He will be so struck with guilt and disbelief that he will entirely withdraw socially. He re-appears when the bull market returns, sharing us with stories of his victories and freely throwing out advice and stock recommendations to anybody willing to listen.
Losing one’s wealth is certainly difficult. When somebody loses money, there is usually the assumption that they might have avoided it. The society examines the tale of failure with the advantage of perspective and identifies what should have been done alternatively. Failed businesspeople suffer with this burden and are continually pointed out of the blunders they made while running their now-defunct businesses. The journey from riches to rags is traumatic in many ways.
Lifestyle and comfort changes; dreams and aspirations must be postponed; social status is lost; obligations to immediate family members—such as the children’s marriage or further education—are not met, making it more difficult to cope with relationships and requirements; and there is a certain loss of that sense of self that one once took pride in. Financial sorrow, unlike other types of sadness, has few sympathisers. We also don’t have closing routines that help people deal with it.
One of the story that I read recently was about a person who chose voluntary retirement from the bank. Tragically, he lost his entire retirement funds to a ponzi deposit scam that promised huge returns. This tragedy dashed all of his expectations of a care-free retirement. He was unable to return to work due to his age and limited educational background. He started a home catering business and fought for years to achieve financial security in his life. His attempts provide us with some lessons about handling a sudden and large loss of riches.
Acceptance of the circumstance is the first step. Denial of reality is simple but unproductive. Acknowledging what has taken place in its genuine form is critical for recovery, as we cannot go back in time to change things. However, the most important step is to be able to make a move on. Judging the loss as an admission of weakness and undervaluing oneself is not beneficial. You may not even receive pity at a certain point. As a result, viewing failure as a past occurrence and understanding that subsequent actions that we take are crucial for our financial and mental peace.
Avoid associating yourself with negative influencers or people who constantly remind you of that event in the past. This is crucial for recuperation. When some of your loved ones are facing financial failure, talk to them about how to recover and help them overcome the issue in a constructive way. As stated in the preceding example, we must pursue the alternate option that stimulates our interests and proceed with that.
However, we must remember to be cautious in our money matters and not repeat previous financial mistakes. “Learn from the past, but don’t be in the past” is a simple yet powerful summary to this post.
