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.
“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.
A tiger shows its stripes: The growth of Tiger Global and their investments
(BUSINESS FINANCE) Tiger Global has been acquiring a load of tech companies – let’s talk about who they have and how they’ve been so successful.
In 2003, Tiger Global was founded by Chase Coleman who began his career at Tiger Management (brilliant name choice). In the ensuing years the investing firm expanded to include private equity and venture investing. Today it’s hitting the charts at $65B with its employees (number at ~100) being the firms’ biggest shareholders.
Earlier this month, Tiger Global raised one of the largest pots of VC money ever recorded, coming in at $6.7B. These came from a list of occurrences and investments.
- Roblox: A sandbox gaming startup, Tiger Global owned 10% when it went public in March and the value is hitting ~$38B+
- Stripe: A fintech firm Tiger Global leaped onto this investment when Stripe announced a $600m rise in value at a $95B monetary evaluation of the company.
- M&A wins: In 2020, 3 portfolio companies (Postmates, Kustomer, & Credit Karma) of Tiger Global were acquired in billion-dollar deals.
The tactics that Tiger Global stands by are well documented in a few different locations. One of the biggest that they push is speed. The deals that fly across their tables are completed in just 3 days, far outpacing other firms. When you are an investment firm hour are a time between success and failure. To keep up with these ideas, they have a pre-emptive approach to startups. Doing thorough research and throwing money at people before they even start looking for it. Knowledge is power and this lets them get their foot in the door faster than anybody else.
Resources and a monstrous war chest are 2 of the other factors that they set their claim to fame on. The numerous portfolio companies have high-priced consultants thrown at them for advice on a regular basis. These consultants just add to the success of the companies and keep things building. Where does this money come from? The stakeholders. The mountainous mounds of money that this firm keeps on hand is matched very few in the world. Scrouge McDuck would be hard pressed to keep up with these guys.
They also keep to long-term holdings as an approach to their methods. Unlike traditional VCs, Tiger Global operates public market hedge funds which provides price stability for startups since it doesn’t have to distribute funds after an IPO, unlike traditional VCs.
In the first quarter of 2021 Tiger Global has closed 60 deals, keeping with their hit the ground sprinting approach. They have bids on a number of different companies already as well (ByteDance, Discord, Hopin, & Coinbase). At least one of these reaches a value into the tens of billions. This company is set to be one of the fastest growing groups in the globe. Who knows where it will stop? Let’s wait and see, or join. Whatever hits your fancy.
India bans cryptocurrency prior to releasing their own
(BUSINESS FINANCE) India is potentially planning to ban cryptocurrency — and instead, they’re planning to introduce their own version of it for purchase.
Owning mainstream cryptocurrency these days is a bit like owning a pair of Crocs: Potentially lucrative (especially if you’re Post Malone), but mostly just weird. A recent report shows that India is planning on adding “illegal” to that list, possibly ahead of launching their own cryptocurrency in place of the banned ones.
The proposed law would also fine anyone found trading—or even simply owning—banned cryptocurrencies in India. Mining and transferring ownership of cryptocurrency would similarly warrant punitive measures.
CNBC notes that this law would be “one of the world’s strictest policies against cryptocurrencies” to date. While some countries have imposed strict laws regarding things like mining and trading cryptocurrency, India would be the first country to make owning it illegal.
Some talk of jail time—including sentences of up to 10 years—for cryptocurrency owners and users was floated by Indian lawmakers back in 2019, but there is no explicit indication that those terms would be present in this rendition of the bill.
To be fair to the lawmakers involved here, the bill wouldn’t be as cut-and-dry as “has bitcoin, gets fined.” According to the CNBC report, people who own cryptocurrency would be able to “liquidate” their earnings for up to six months preceding the bill going into effect. This would theoretically allow investors to hold onto their portfolios for a bit longer before having to cash out.
But that leniency might not matter anyway. It doesn’t take a genius to see that this move could do two dramatic things to the cryptocurrency market: Add yet another niche option for investors, and destabilize every other pre-existing cryptocurrency option—or, at least, make them less stable than they already were.
In fact, the simple introduction and threat of this bill could be enough for the cryptocurrency market to take a nosedive—something that can’t be discounted as a factor in making this decision. Current reports put Indian-owned bitcoin values at roughly $1.4 billion, though, so it’s clear that the bill hasn’t had a deleterious effect at this point.
The fact that India’s central bank has plans to introduce a government-sponsored cryptocurrency of their own cannot be separated from this bill, either. While the official government position is that blockchain is to be trusted while existing cryptocurrencies are eschewed and dismissed as “Ponzi schemes”, it’s clear that at least part of this bill is motivated by a desire to thin out the competition.
Which generation has cried the most over money?
(BUSINESS FINANCE) Financial stress is tough on everyone. Here’s who has cried the most about money woes, and a few tips on how to alleviate some of that stress.
There’s been serious critique in the last several years about the educational system and what basic knowledge young people should be taught in the United States. Home Economics (Home Ec) comes to mind (everyone should probably know how to cook or sew a button), as well as financial literacy.
There are many young Americans who grow up not really having a deep understanding of budgeting and fixed and variable expenses… But it may not be their fault. Perhaps, Mom and Dad (or other guardians) have always been paying for all of their expenses, making sure they had a roof over their head, clothes on their backs, and food in their fridge. Because, that is what you’re supposed to do as a parent, correct?
So, while there’s no reason to blame anyone, often the process of learning what it costs to live and pay your bills is a rite of passage.
The current state of debt and financial fears also doesn’t mean that Millennials and Gen Zers weren’t educated around savings or working. Many young people have had part-time jobs (although much less in comparison to Gen X or Baby Boomers) but they may also be able to use the majority of that income for discretionary spending – which never created room for feelings of lack when they didn’t have to pay rent or a mortgage.
This scenario can ultimately create a challenge when you are finally out on your own and now have student loan debt, credit card debt, utility bills, and required car insurance. Especially if you are young person moving to a big city for exploration and/or new opportunities, where the cost of living can be quite high.
If you are feeling nervous or sad around finances, you are not alone. If you have cried over your personal balance sheet or your bank statements, you are also not alone. According to yahoo!money, a recent online survey of 1,004 Americans by CompareCards.com found that “7 in 10 Americans said they have cried about money in their lifetimes. Many cited worries over their job or making ends meet. Younger Americans appear the most vulnerable to financial tears. About half of millennials and half of Gen Zers said they cried at least once in the past month over money.”
So how can you cry LESS about money? Well, the first thing is to not be too hard on yourself. But you will also want to create a plan that works for you. Each person deserves financial freedom and not a bank statement that makes them cry on the regular.
Here are some financial literacy resources that may help you figure out how to navigate your way out of crippling debt.
Dave Ramsey Books – The Total Money Makeover – A Proven Plan for Financial Fitness
Bravely Go with Kara Perez – Feminist economics + inclusive personal finance
Debt Relief Programs – you’ll have to do your research but there may be a program that is right for you and an agency that can help you set up a realistic payment program for you
Student Loan Forgiveness – it is worth looking in to your options if you are feeling overwhelmed with student loan debt and there may be ways for your loans to be forgiven
Financial Advisor – consider working with a professional that can help you with your budgeting, investing and retirement savings/funds
And you may still cry because this is big adult stuff… But hopefully you trust yourself to do the research, explore, ask, and find options that work for you to gain a little more control over your financial situation.
If you are not already doing so, it may be as simple as starting with a budget to better understand your income and outgoing expenses. Being informed can help you to plan better for the future and make you feel less like crying.
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