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Deep dive into how money troubles can actually trigger PTSD

(FINANCE NEWS) Research indicates that PTSD isn’t exclusive to those who have witnessed violence, and many people are triggered by something as common as financial woes.

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Overwhelmed and in too deep

“You know, if it wasn’t for my in-laws, I don’t know what we would have done,” Pete began. “Her cancer, even with the benefits, has cost us at least half a million. That, plus the kids..,” his voice trailed.

“If it wasn’t for the fact that my life insurance didn’t pay off on suicides, I’m not sure that I’d be here now,” he chuckled nervously.

Clouding the mind

We were supposed to be having a one-on-one meeting to discuss recent performance, but it was clear that Pete’s mind wasn’t really there. Generally a man of few words, this was the first time that he’d ever been personal in conversation with me, and his attempt at lightheartedness was flat. Despite his best efforts to the contrary, it was clear that he was burdened.

“Can I ask you a direct question?” I asked.

“Sure.”

“You okay?” The silence lingered for a moment, and he responded, “Yeah, I’m good, I’m good.” The repetition seemed more an effort for Pete to convince himself than it was to answer me. We moved on to the business before us, but as he left my office, I turned to my computer and sent him an email, thanking him for our meeting, and making sure he knew of the company’s employee resource plan, which could provide him access to licensed therapists which he could speak to confidentially, and for free.

Financial stress equates to physical and mental concerns

It’s been well-established that downturns or upheavals in personal economic conditions can be a significant stressor. The threat to the ability to care for your needs and those of your family, whether the threat is immediate or foreseen in the future based on current conditions, can cause us to experience a gamut of emotions and lead to inhibited decision making. An extended perception of threat to economic viability can have real physical consequences, as well.

In a 2011 article published in Health Social Work, authors Bisgaier and Rhodes identified correlations between poor health and adverse financial circumstances in a study of over 1,500 emergency room patients.

Patient reactions were examined across five categories of economic need: food insecurity, housing concerns, employment concerns, cost-related medication nonadherence, and cost barriers to accessing physician care.

Nearly half of all patients surveyed identified one or more financial concerns, and nearly one-third reported identifying with two or more categories of economic deprivation.

Furthermore, a significant relationship was found linking the number of financial circumstances and indicators of ill health in the patient: poor/fair self-rated health, depression, high stress, smoking, and illegal drug use. Beyond the critical point that individual concerns related to financial security are relevant to physical health, mental health concerns are often an undiagnosed byproduct of financial stressors as well.

Effect on the entrepreneur

The entrepreneur often bears a dual-edged burden, as the success of their business is often inexorably linked to personal financial success.

Everything the entrepreneur has invested—time, reputation, not to mention leveraging personal resources—can be lost during periods of economic instability, and the stresses that face small business owners during these times are significant.

Even a booming economy is no guarantee that the entrepreneur’s own business will benefit from the rising tide, as the Small Business Administration has identified that the survivorship rate for small businesses over a five year term is only a 50/50 proposition.

Living daily in these circumstances can lead the entrepreneur to be at risk for an unexpected problem: Post Traumatic Stress Disorder.

What is PTSD?

When we think of Post-Traumatic Stress Disorder (PTSD), we often associate it with professions who have frequent or prolonged exposure to traumatic situations, such as first responders or military personnel.

While those two groups often do face a very real challenge with their ongoing exposure to stressors that can lead to troubling symptoms, it is by no means an exclusive fraternity. PTSD is different than your reactions to dealing with day-to-day stress, and it’s also different than your reactions to dealing with a single traumatic event, such as a severe downturn in your business or a bankruptcy. Stress in those situations is normal and you should expect that your behavior and emotions may change over time as you deal with them.

That’s not what PTSD is, nor is it a manifestation of another physical illness or medical condition, or a reaction to outside stimuli, such as prescription medication, alcohol, or drugs.

How it’s triggered

Defined in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5) as meeting the diagnostic criteria of exposure to death, either actual or threatened, a serious injury, or a sexual violation, PTSD stems from exposure to these scenarios in which the individual either experiences the event personally, witnesses the event personally, or learns of it occurring to a family member or a friend, or has ongoing or extreme exposure to details of the incident that are troubling.

Regardless of which type of event caused the manifestation of PTSD in the individual, the outcomes are noted to be significantly impactful, making the ability to interact socially with others or to work challenging at best and impossible at worst.

While some experience symptoms soon after the traumatic event, it’s important to note that not all do. For some, the symptoms don’t begin until months or years later, when they are triggered. And it’s important to note that symptoms can come and go over time, and their intensity can spike and wane, depending on the external stimuli you face. For example, you may experience an increase in symptoms or severity when you’re feeling tired or stressed about other things entirely, or when you have an unpleasant reminder of the situation that you’ve faced.

Deeper into the effects of PTSD

Psychiatrists have identified four major areas of symptomology associated with PTSD: re-experiencing, avoidance, negative cognition/mood, and arousal. Depending on with of these areas, or which combination of them, you’re dealing with, individuals can experience a gamut of symptomology.

For some, there may be nightmares and flashbacks about the incident or series of incidents that led to the financial concerns. For others, they become avoidant of situations and/or individuals that they associate with the events in their mind. In some cases, this avoidance can transform into an addiction to work or to activity, as it allows the individual to keep their mind engaged on things other than their financial condition.

Depending on the root cause of the trauma, it is not uncommon for personal beliefs about self and others to change, and a loss of trust can occur, for self, others, and systems. Hyper-aroused states are also common in some individuals as a response; always looking for reoccurrences of the situation may manifest itself if a lack of ability to sleep or concentrate, or in a mood shift towards irritation and anger.

These shifting moods are addressed in the current DSM-5, which notes that individuals suffering from PTSD can vacillate between the “flight” and “fight” modes of response.

Finances and PTSD

There’s always an antecedent to behavior; it’s highly atypical that an individual responds to a situation in a totally unpredictable way. So, when looking at how individuals come to face financial trauma, there’s the issue of what caused them to be in this position in the first place, and then the issue of how they’re left to deal with it.

It’s tempting to label those who are going through financial misfortune as being the product of their own poor choices and decision-making—and some undoubtedly are—but we can all think of incredibly talented, hard-working people for whom a life circumstance or factors within their field of industry have caused a problem to arise.

Once people have begun to experience the effects of finance-induced PTSD, its harder still for them to have the necessary capital to bounce back quickly.

This does not make them lesser, despite the temptation to invoke the stereotype of pulling one’s self up by the proverbial bootstraps.

It makes them our neighbors, who could use our support as they deal with things they never imagined themselves facing, doing the best they know how to do with the resources at hand. Because of the intrusion of the effects of finance-induced PTSD, the individual often isn’t at their optimum when dealing with the business side of things: their debt and how it’s structured, how they need to arrange their lives to deal with the situation at hand, or how to get back to work when they’re facing an unsure employment situation.

Audrey Freshman conducted a survey of victims of the Madoff Ponzi scheme in 2012. In her research, published in Health and Social Work, over half of the respondents met baseline criteria that would put them in line for a possible diagnosis of PTSD according to DSM guidelines. A substantial loss of trust in financial institutions was noted by 90% of the respondents, and nearly 60% reported high levels of anxiety and depression.

How to get help

Remember, if you or a loved one are dealing with either financial concerns or the symptoms of what may be Post-Traumatic Stress Disorder, you don’t have to deal with them alone.

It’s hard and uncomfortable for some of us to reach out for help about something as personal as our own financial situation, especially when it’s messy, or our health, especially when we’re honest with ourselves that things aren’t what they ought to be.

But by doing so, by seeking information and assistance, you’re allowing yourself the gift of recovery, both fiscal and physical, and can transition forward from this rough patch.

For financial support, especially for the small business owner, the United States Small Business Association is a great resource. From their website, you can find your local chapters, and make an appointment to see a local advisor, who can provide assistance across a range of topics. For personal finances, there are a myriad of late-night TV ads and Internet popups offering credit counseling or debt assistance.

While it’s tempting to have help right at your fingertips, make certain that anyone you talk to is certified as a credit counselor either through the National Foundation for Credit Counseling or the Financial Counseling Association of America. Both of these organizations are creditable and certify other agencies to provide accurate, timely assistance without steering you towards one preferred solution or another.

For your personal health, your healthcare provider is the best first stop for you to discuss your physical or emotional health. Beyond the doctor’s visit, however, your support network who can be there for you is a crucial lifeline to recovery: people who you trust, who you know well and who know you in return, and who you can count on to give advice and support in your best interest.

If you feel that your situation may require more immediate help, there are other easily accessible and confidential resources for those who need them:

The National Suicide Prevention Lifeline is available 24/7 either by calling 1-800-273-8255 or by going to their website at http://suicidepreventionlifeline.org/ and engaging in an online chat.

For those who prefer texting options with qualified crisis counselors, the Crisis Text Line is available 24/7 by texting “Go” to 741741.

As always, if you think you’re in danger of self-harm or suicide, call 911 or your local emergency number immediately.

With the holidays approaching, many struggles with finances can be felt more intensely. In the spirit of holiday gift-giving, give yourself the best gift of all—peace of mind and a sense of health—by taking care of you, so that you can deal with the situations that have arisen.

This story was originally published in November 2016.

Roger is a Staff Writer at The American Genius and holds two Master's degrees, one in Education Leadership and another in Leadership Studies. In his spare time away from researching leadership retention and communication styles, he loves to watch baseball, especially the Red Sox!

Business Finance

Ramp: Corporate card launches to push you to spend LESS

(FINANCE) Ramp up your biz with higher credit lines and simple tools for expense monitoring. Ramp wants to take your worries away with their features.

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You launch your startup. You get the business going and need corporate cards for expenses. Standard issuers may decline to serve you because they see your business as a risk. Or, they offer you a low credit limit. But, you need to purchase pens, paper, coffee, and beer (you are a startup).

Before you head down the rabbit hole of “how will we pay for all those breakfast tacos?” there’s a new corporate card company ready to serve your needs. Ramp launched recently with the goal of providing higher limit corporate cards for startups.

Not only does Ramp provide corporate cards, it makes it easier for businesses to control employee spending. Rather than giving everyone a card with unlimited spending amounts, or only giving cards to certain employees, Ramp allows you to create spending rules and set spending limits for employees.

Also, there are no fees for using the cards. Every employee can have their own white card without any fees attached. The company plans to earn income through transaction fees, just like other card companies.

And, according to this story in Tech Crunch, Ramp allows you to integrate with some accounting software and to centralize receipts and attach them to expenses.

The company has launched with $25 million in backing and has several high-profile startups already using its services, including Candid, Truebill, 8 Sleep and Ro.

To make things easier for companies, Ramp offers a flat 1.5% cashback rate across the board on all purchases, whether you take a ride share or purchase computers, you get the cashback regardless. Ramp said startups can expect limits set 10 to 20 percent higher than traditional card companies.

The company may create competition for Brex, which launched in 2017. Unlike Brex, which has a more complicated points systems, Ramp aims to make cashback, monitoring and setting spending limits a simpler process.

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Business Finance

Why product liability insurance is critical for companies

(BUSINESS FINANCE) The best way to protect your company, and more importantly your customers, is product liability insurance. It keeps your standards up, and lawsuits down.

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If your small business manufactures products, you need to think about product liability insurance. No matter how good your designs are, or how polished your quality assurance strategy is, there’s a chance one of your products could come to harm a customer. And if that happens, your customer could contact a personal injury attorney and bring a case against you. Personal injury cases are somewhat common, and could cost you hundreds of thousands, if not millions of dollars if you’re not protected.

Product liability insurance coverage could protect you in the event of such a case. But what exactly is it, how does it work, and how are you supposed to get it?

The Basics of Product Liability Coverage

Let’s start with a high-level overview of product liability insurance. While different carriers and different policies will afford you different types and levels of protection, most product liability coverage is designed to shield your business from the fallout of a company-produced product that causes injury or harm to third parties.

Product liability insurance typically covers the legal fees associated with any product liability lawsuit, as well as medical costs, compensatory damages, and business damages that arise from the incident.

How Products Can Fail

How does a business become liable for a harmful product?

There are four main ways consumers can be harmed:

• Design flaws. If your product is designed in some flawed way, and the consumer gets hurt because of it, they could have a case against you. For example, if you create a deep fryer product with a locking mechanism to prevent burns, but that locking mechanism is weak or easily overridden, a customer could get burned as a result of using the product.

• Manufacturing flaws. There could also be manufacturing flaws. The design itself might be practically perfect, but if a batch of products are made with an incorrect material, or aren’t made to specifications, they could still fail in a way that harms a consumer; for example, a skateboard with a loose wheel might cause someone to fall.

• Marketing flaws. Your product could also be marketed or advertised in a way that eventually leads to consumer harm. If you falsely advertise the capabilities of your product, and a consumer follows them and hurts themselves in the process, they could hypothetically sue you. The same is true if you claim there are no downsides to a product that has downsides.

• Misuse. Even if a consumer misuses your product, your company may still be held at fault. For example, if you don’t specifically warn a customer that misuse could lead to harm, and caution them against specific forms of misuse, they could ultimately bring a case against you.

As you can see, there are many ways your products could lead to a customer getting hurt—and some of them are hard to see coming. While you can implement safeguards at every stage of the process, there’s always going to be a chance that one of your products fails in some unseen, unpredictable way.

The Extent of Damages

You may wonder if you truly need product liability insurance. After all, in the unlikely event that a product fails, you may be able to cover the costs yourself. However, this is extremely risky. The costs of a single product liability case can be devastating, and if you face a class-action lawsuit, or multiple lawsuits, there may be no chance of recovery. Remember, you could be responsible not only for compensating the customer for their injury and their pain and suffering, but also for covering the legal fees of both sides.

Some cases can cost millions, or even tens of millions of dollars.

Product Liability Insurance Rates

Most product liability insurance policies require you to pay a monthly, or other type of regular premium for your coverage. These rates will vary based on a number of factors, including the size of your business, the type of product you’re manufacturing, the extent of your distribution, and how much coverage you desire. Some insurance companies may also want to conduct inspections, reviewing the design and manufacturing of your product firsthand so they have a better sense of your safety standards.

Still, product liability insurance rates are typically reasonable. Shop around for the right insurance provider, and consider bundling your product liability insurance policy with other policies to lower your rates even further.

Conclusion

If your business designs or manufacturers products, product liability insurance is a practical must. It’s easy to get a policy, and most policies are relatively inexpensive, but this safety net could save you from shelling out millions as a result of an unforeseen product flaw. No matter how safe your operations are, or how many supervisory checks you conduct, there’s always going to be a chance that someone is injured while using your product—and that’s when your policy will kick in.

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Business Finance

Small metros may have cheaper homes, but they might not have the jobs

(BUSINESS NEWS) Study by Indeed finds that small to mid-sized metros offer higher adjusted salaries, but don’t pack your bags just yet because your job may not be there

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When I told my parents how much my partner and I would be paying for rent at our new apartment, they quickly pointed out that I could purchase a home for that kind of money in my hometown.

Indeed recently published a study where they determined which cities have the highest salaries after accounting for the cost of living, an adjusted salary. Every city on the list is a small or mid-sized metro area which is why they dubbed their findings, “the small-city advantage.” No surprise to me, my hometown made the list.

My parents are right, I could literally buy a home for the amount of money I pay in rent every month to live in a large metro area. But the equation that determines where I, and many other workers should live, is more complex than salary minus housing.

Indeed’s study also shows that bigger metros have faster job growth and lower unemployment compared to these small to mid-sized metros. This is why the number one city on their list, Brownsville-Harlingen, TX, also has a higher unemployment rate than the national average. Some of the other cities on the list are Fort Smith, AR-OK, Toledo, OH, Laredo, TX, and Rockford, IL.

These areas are cheaper to live in, in part, because they may not offer the kind of job opportunities, and therefore social mobility, you see in larger metro areas. Sure, I could make my money go further in my hometown, but the chances of me finding a job in my industry there are smaller.

Your field of work does matter when considering whether or not the “small-city advantage” could work for you. If you work in tech or finance, two traditionally high-paying fields, then this advantage doesn’t apply.

“Before adjusting for living costs, typical technology salaries are 27% higher in two-million-plus metros than metros with fewer than 250,000 people. Even after adjusting for those costs, tech salaries are still 5% higher in the largest metros than in the smallest ones,” finds Indeed.

If a huge tech company offering thousands of high-paying jobs moved into a city like Brownsville-Harlingen, TX, over time it would get more expensive to live there. This is why people were freaking out so much when Amazon was trying to decide where to locate HQ2. It’s the hamster wheel that is currently driving income inequality in some of America’s largest major metro areas.

Finding the right place to call home is never going to be a single factor decision. Yes, salary is a huge factor, as is the cost of living, but there are also lifestyle factors to consider. What kind of opportunities would you have in this city? How much will it cost to move there? How will this effect the other members of your household?

It’s nice to play the ‘ditch the corporate world and buy a country house’ fantasy after a long day at work, but the reality is far more complex.

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