# Presentation: 067411

## Managing Financial Stress:Surviving the Weak Dollar

- A lunchtime talk through EAP
- Nancy D. Losinno,
- LCSW, CEAP, SAP
- April 23, 2008

## Where’s that $100 bill I just put in my wallet?

- Learn to recognize financial stress
- Worrying/arguing with spouse over $$$
- Having to use plastic for everyday $$$
- Only making minimum payments
- Making payments late (and incurring those hefty “default rates”)
- Feeling overwhelmed by debts
- Having trouble sleeping or being moody

## Money Matters...Part of Life

- Every family has expenses and _decides_ their money priorities
- Some things you have no control over: costs of gasoline, food, electric rates, income and property/school taxes, stock market
- Financial stress can build up insidiously over time as larger economic forces change the overall climate

## Poor coping responses toFinancial Stress

- Being afraid to open the mailbox
- Not paying your bills/holding onto what is believed to be _*your*_ money
- Stacking your bills in one pile and dis-regarding their due dates
- Other avoidance tactics: drinking to escape, screaming at family members, even possibly domestic violence
- Financial stress can cause some people to think of suicide

## Get control of what you can!!

- Analyze your use of credit cards
- Analyze your level of responsibility about paying bills on time to avoid late fees, default rates, overlimit charges, etc.
- Figure out a Phase One plan, Phase Two, etc. about how you will learn to live on what you earn (short-term goals and long-term goals)

## Triaging your debts

- Is there any situation that requires _immediate_ (esp. legal) attention?
- Is there any _**impending**_ situation that if unaddressed, will create a huge crisis?
- Wage garnishees, foreclosures, evictions, IRS or NYS income tax issues cannot be ignored
- Get expert legal advice and know your rights under the NYS consumer protection laws (do a google search for bank, credit cards, etc.)

## Demystifying your Debts“What caused this mess?”

- Effects of a divorce (legal fees, cutting assets in half, child support, starting a new household);
- Kids in college;
- Using cards to live—not living within your means;
- A medical crisis
- An adult child with “problems”
- Lost income (a tenant moved out, etc.)
- The terror of the default rate
- A gas-guzzling vehicle
- Not looking!!!

## Clear the Clutter

- Your ability to think clearly about your situation will improve if you de-clutter your environment
- Clutter can cause depression & inertia
- Clutter prevents you from finding what you need quickly
- Clutter will make you lose important papers (bills) that you must attend to

## Get organized today!

- Create a bill-paying workspace with a bill-drop zone;
- Have phone & office supplies nearby;
- Develop habit of reading bills as they come in and flagging items that need response (call company, question amt.)
- Be aware of all due dates—postmen are not perfect;
- Get address book to keep track of all those online bill-pay user id’s and passwords

## Become a Smarter Consumer

- What is your mortgage rate?  Is it fixed or variable? If variable, get it fixed.
- Are you over-paying for necessities? (e.q., using local drugstore for prescriptions vs. mail order)
- Use in-network doctors
- Make cash a habit; think twice

## Things you can “tweak”

- Look for more competitive rates on:
- Cable plans
- Cell phone plans (can be bundled)
- Mortgage
- Homeowners insurance
- Car insurance

## Some philosophical questions

- To refinance, or not?
- To borrow against your house, or not?
- To declare bankruptcy, or not?  What about “debt consolidation?”
- Which medical plan is best for this time in yours and your family’s life?
- How much should you improve your home and how much is too much?

## The Rule of Three

- Make a promise to yourself to handle THREE problems a day
- Set aside a certain time of the day to call a creditor re: incorrect bill, question a late fee, return an unwanted item, etc.
- When you do this on a regular basis, you are chiseling away on your debt

## Money & Marriage

- Marriage can be a formidable economic unit if both partners share same goals; if not marriage can create financial chaos
- Both partners need to work collaboratively to solve the money issues; one cannot reserve right to “act out” with money according to indiv needs
- One person’s acting out with money can create workaholism in other
- Don’t go shopping when angry or depressed

## Detoxing from Overspending

- Is sure to bring discomfort
- Is an opportunity for growth & creativity
- Create a “spending plan” not a budget
- Spending plan: rational, thought-out, no connotations of “scrimping”
- Avoid the stores..find something else to do, enjoy paying your bills
- Take a second look at kid’s afterschool activities (dance, sports, etc.) that require extra time and money
- Trim spending for eating out, fast foods esp due to poor planning, or not grocery-shopping regularly.  If going out, avoid appetizers, alcohol, pricey desserts, etc.
- Put your credit cards in a “Forbidden Zone.”

## Ten Money Rules for Becoming Proactive

- Your job is your most valuable asset.  Protect it, perform your job well.  Your job gets you better rates, pays your health insurance, etc.
- Question the “not enough” feeling of inadequacy you might have.  Often comes from childhood deprivation, other trauma, etc.
- Set goals, have a dream such as the house being paid off by retirement, etc.
- Pay down higher interest rate cards first but you must first know the rate your’re paying
- No one minds your money as well as you will.  Don’t look to be taken care of by someone else.
- Keep good records and someday you will be glad you did.

## More Money Rules

- Subscribe to a monthly money-related magazine.  It will jog your brain for new ideas, keep you updated about trends, and remind you to do some regular housekeeping on your finances.
- Teach your kids about money literacy, the little kids as well as the older ones.
- Learning money skills is a positive life skill.  Don’t give your kids a fish, teach them how to fish.
- Nature abhors a vacuum.  When you look at your whole life, try to look at the areas of prosperity or the ways you can downsize in order to help others.  Try to live smaller.

## Causes of Relapse for your “Spending Plan”

- Using money as a mood-changer
- “We’ll deal with it later” impulsivity
- “Till debt do us part”
- Hidden addictions
- Not planning for major expenses
- Playing rescuer to other people’s crises
- Untamed grandiosity
- A divorce occurring late in life
- Letting cash “burn a hole in your pocket”
- Sudden wealth syndrome

## Speaking of Sudden Wealth

- Would you know how to handle it wisely should it happen to you?
- Sudden wealth produces many emotions: guilt, anxiety, fears, etc.
- Many have spoken about “the Lotto curse”
- Get a good lawyer, a good accountant and a good therapist!!!

## Making Positive Changes

- Where would you like to be one year from now?  Five years from now?
- Self-esteem must be an inside job, and should not be defined by externals
- You are not your debt, but you are responsible for managing your financial affairs wisely
- Eliminate “entitlement” thinking; avoid resentment about what you don’t have & focus instead on what you do have
- Get some mental energy going and see this as a challenge and opportunity for growth

## Free Resources

- Free is always good
- Free legal consult for 30 min available through Cigna EAP to _all_ Lab employees.  Call 1-877-622-4327
- Free TIAA-CREF onsite advisor by appt.  Call Benefits for appt.
- Free financial calculators available on _[www.bloomberg.com](http://www.bloomberg.com/)_
- www.debtorsanonymous.org

## Your BNL EAP

- Onsite short-term counseling, call X4567 for appt (Nancy Losinno, Mgr.)
- 24/7 crisis and referral hotline at 1-877-622-4327
- Off-site services for 1-3 visits in provider community.  Call above # for referrals
- _[www.cignabehavioral.com](http://www.cignabehavioral.com/)_
- http://www.bnl.gov/hr/occmed/EAP/