As the title of this post suggests, your mood, like most of us is pretty awful when it comes to your finances.  The list is endless: the financial markets are in a once-in-a-century upheaval, your house is worth half of your huge mortgage, and your boss is increasingly cold to you these days.  When we think about all the dire headlines and bits of financial information constantly assaulting our brains on a daily basis, we can’t help but feel more and more insecure, even if we are still able to satisfy our immediate financial needs, like food and shelter. 

Just like the inevitable crises that you may have to deal with at work or in your family, there are only two general directions to go: panic or plan.  I’m not saying it’s easy, but the better course to take, obviously, is PLAN.  Or maybe you still want to indulge in a bit of panic, like running around your house uttering a cathartic scream, and then sit down to pen your plan.  Here’s a preliminary start for your collective plan to deal with the financial tsunami that has been gripping this country for the past year.

1.   Take stock of your finances by writing down everything you own and everything you owe.  It might not be as dire as you think.

2.   Turn off the TV.  I’ve stopped watching the nightly news.  How many times can you listen to Brian Williams of NBC say “financial crisis,” “hard economic times,” or some other variation of the same?  It will only depress you.

3.   Vow to adjust your attitude at work into one of gratitude.  Instead of lamenting the disappearing raises and the meanie boss, take heart that at least you are employed.  If you’re not employed, skip this step.

4.   Reach out (selectively) to family and friends, and share your feelings.  You’ll find that your mood picks up immediately, even if you don’t resolve the question of what should happen with the $700 billion bailout package.  Why?  Because you’ll end up catching up with loved ones on more important matters.

5.  Write out a 30 day spending budget.  This sounds simplistic, but it’s a straightforward way for you to break down what is happening in your financial universe in the immediate future.  Forget about what will happen with retirement, your college fund for the kids, or looming medical costs down the road.  That kind of thinking is just too overwhelming at this point.  Moreover, you really can’t do anything to solve those issues in the next week.  Do what you can now.

This post is the start of my occasional series on how to handle our emotions and actions during this unprecedented financial crisis.  In future posts, I’ll flesh out my thoughts on how to cope with job loss and how anxiety and worry can actually work to your benefit.  Ciao for now.