Brain Battles in Financial Survival Mode
Have you ever made a decision during a high-stress situation that you have regretted? Or found yourself procrastinating which resulted in no decision being made at all? You’re not alone. When stress peaks, our brains can push us into impulsive choices – fight, flight, or freeze. In this space, we share more about these survival responses, how they affect your financial decisions, and how your team at Yeske Buie can help you navigate uncertainty with a steady hand.
Understanding the Brain
During periods of elevated stress, individuals often act impulsively in order to cope with uncertain outcomes. These impulsive responses – commonly known as fight, flight, or freeze – are the brain’s natural and automatic response to a perceived threat in an individual’s environment; they trigger our fear emotion. Controlled by the amygdala, a small almond-shaped structure in the brain, fear triggers the brain to activate one of three physiological responses designed to protect us from threats to our survival:
- Fight: Confronting the threat head-on, often aggressively
- Flight: Fleeing/running from the threat
- Freeze: The body becomes immobile
Although today’s environment does not present the same threats as it did for our nomadic ancestors, stressors related to work, relationship conflicts, media overload, or, perhaps the most significant stressor common among all Americans, financial stress, can produce the same fight-flight-freeze responses.
Fight, Flight, or Freeze and Your Financial Life
In a survey done by Capital One Creditwise, 73% of Americans listed personal finance as the number one stressor in their life. With the belief that money touches every aspect of our life – where we live, what we eat, what we wear, how we spend our free time, etc. – money is necessary for our survival and our ability to satisfy our most basic needs.
However, whether it be because of news of a predicted recession, interest rate hikes, or a large dip in the stock market, anxiety about our finances and financial future can be easily triggered and cause us to go into “financial survival mode”. Here are examples of what the three responses while in “financial survival mode” might look like:
- Fight: Confronting your financial professional (bank teller, advisor, etc.) or partner in an aggressive manner.
- Flight: Selling the entirety of your investments to avoid further market volatility.
- Freeze: Being unable to make an investment decision due to information overload from too many sources (the news, social media, your neighbor, etc.).
Support from Your Yeske Buie Team
It is during times of uncertainty and elevated stress that the decisions made while in “financial survival mode” could have negative consequences on your financial goals. During moments of economic uncertainty or other financial stress, your team at Yeske Buie can offer you crucial support. We aim to create a safe, judgement-free space where you can express your concerns to an understanding audience. Once we’re aware of your concerns, we can help you make an informed decision during the most turbulent times, like encouraging you to stay invested during a market downturn or preparing an analysis to ensure you’re still on track to meet your goals. Our understanding of these cycles and the various components that are in play creates an opportunity for us to serve you. It’s literally why we exist – to walk with you through the ups and downs of your life journey!
It can be easy to let fear drive our decisions, but in recognizing that fear and the impulsive decisions we make, especially as it relates to our finances, are natural, we can begin to take steps to make informed decisions that serve our goals. It is during times of uncertainty that having a team on your side can make all the difference. We hope you find that we are good people to think with, to provide guidance in even the toughest moments with understanding and expertise, and to empower you to pursue your Live Big® life.
If you are curious about the complexities of the human brain, check out these resources below: