I define a financial allergy as an uncontrollable reaction to money events that causes your life to become unmanageable.

While the idea of a “money allergy” may be new to you, its  important to understand.  I got a pretty good lesson on what it means just a few days ago.

I met with some very close friends and what started out as a simple discussion about the state of our economy turned into something very different.    My emotions started to surface – big time.

At first, I thought my strong feelings were connected to the current economic situation but the reality was very different.

The economic situation simply triggered old feelings that were tied to events that happened 34 years ago.  What I was feeling at that moment wasn’t connected at all to the current economic climate.  (Don’t misunderstand.  I have concerns and I’m certainly unhappy about the losses that so many people have and are enduring right now.  But what I was feeling at that moment wasn’t connected at all to current events.)

I had an allergic reaction to a current money event.

The reason this allergy is so dangerous is that it’s so  easily misunderstood.   I could have  gone on thinking that I was upset about the market.  Had I done that my happiness would depend on something completely outside of my control.   Wait…scratch that. Had I gone on thinking that I was upset because of the market, I would have gone on being upset even after the market improved. I say this because the real problem wasn’t the market – the problem was in the past and I needed to deal with that.

Once I understood that current events simply triggered old feelings, I could express my feelings and get back to the present.  Recognizing the real problem creates the only possibility of solving it.  I remember an old saying. “Make sure of what the problem is before you try to fix it.” That really makes sense to me.

Why do I share all this with you?  Because you might have a financial allergy too. If you feel anxious, afraid, angry or unsettled…is it based on what is happening to you today or does it live in some very old event?

You may have lost your job.  Your assets may have declined significantly.  These are real problems.   But your emotional response may be out of whack. You might feel like you are one step away from the poor house but objectively that is probably not true.

I could sit with you all day long and prove that your situation is not as dire as you feel it is  but your feelings may not shift.  Been there. Done that.

But if you do find yourself in that situation, try a new approach.  Go inside yourself.  .  Better yet, go talk to a close friend.

Have you ever had concerns that are way out of proportion to reality?  Do you think this kind of exercise would help?

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