Learn the economy of living on the edge

Eileen Griffin took all her savings and opened the Griffin Bookshop and Coffee Bar in downtown Fredericksburg, Virginia. It became a favourite, with live music performances on weekends.

Then the economy started doing what it's doing. Sales slowed in September. In December, there was a rally. January brought with it a slump.

“I'm putting all the money in the store. I'm praying this is all going to get better in the next couple of months,'' she said.

Local and national mental-health experts said the loss of jobs, homes and retirement savings has triggered an increase in the number of people with symptoms related to anxiety or depression, such as changes in sleeping and eating, headaches and nervousness.

In a poll, 57 per cent of those surveyed said the nation's economic condition is a cause of stress in their lives. More than a quarter said they had “serious'' anxiety.

The percentage of stressed-out people was higher among those who said their finances had suffered “a great deal'' from the recession.

Among this group, 83 per cent said they were stressed, with 55 per cent reporting serious anxiety.

If you think you cannot get through this on your own, turn to friends, family, clergy, financial advisers or mental-health professionals.

Maintaining your health by eating well, exercising, sleeping enough, taking walks and doing fun things that don't cost much money are also important.

While a positive attitude helps, taking steps to financial planning is also important.

“They need to be realistic,'' said Terry Diebold, president of the Virginia Association for Marriage and Family Therapy in Fredericksburg.

“Remember,'' she said, “this is not going to last forever.'' So come up with a short-term plan. “Think ‘How are we going to get through the next year?' instead of ‘This is going to go on forever','' she said.

First things first

It's important to deal with the immediate financial problems first, a step at a time, said Dan Abrahamson, assistant executive director for state advocacy at the American Psychological Association.

If you've lost your job, think about family members you can turn to or institutions you are affiliated with that might be able to help, he said.

Think of changes that could improve your situation — perhaps getting rid of your car will help.

Then think long-term. While you might not think of wiping out your credit-card debt if you're trying to make ends meet, you should think about it for future financial wellbeing.