Feeling Anxious and Overwhelmed With Rising Inflation? Here Are 5 Ways to Cope.

The starting point is to focus on what you can control.

Every month, it's the same thing right now. Everyone is waiting for only one thing: the new inflation figures in America published by the U.S. Bureau of Labor Statistics.

You can see the schedule of announcements for the next few months on the U.S. Bureau of Labor Statistics website:

As inflation reached 8.6% in America in May 2022, everyone is now feverishly awaiting the announcement of the next inflation numbers on July 13, 2022. Whatever those numbers are, everyone will be just as feverish on August 10, 2022. And so on.

Because even if inflation is below 8.6% in the next announcement, everyone will want to be sure the next month that we are seeing a drop in inflation and that the Fed's rate hike is starting to take effect.

Such an obsession with inflation seems logical because, beyond the numbers, it is a reality that we all live with every day. You only have to look at the much higher gas prices at the pump to understand this. It's enough to make you anxious and upset.

Despite this, you're going to have to learn to get past this bad time, because it is a bad time to be in. It won't last forever, but here are 5 ways to better cope with the heart of the storm that is this rising inflation and the possible risks of a recession that come with the Fed's actions to combat this rising inflation.

1. Focus on what is within your control

This may sound trivial, but in life, you should always be able to discern the things that are within your control from those that are not within your control. This is difficult to do when your emotions take over, but it is the work you will have to do.

Once you have made this distinction, you must make another effort: that of focusing fully on what is within your control, leaving aside what is not.

This is essential because there is no point in dwelling on things that are out of your control. You don't have control over rising inflation. You can't stop the war in Ukraine that triggered the energy crisis that is driving up the price of oil and then affecting prices at the pump.

But you can control how you try to deal with this inflation by managing your finances even more carefully. This is within your control.

2. Define the monthly budget you need

With inflation rising month after month for the past several months, it becomes urgent to define your priorities. This is within your control. Define the budget you need to live on. This means taking everything that is not essential out of the equation.

Entertainment, travel, and eating out are fun, but they are not essential to living.

Once you do this, you'll have a better view of where you stand with this high inflation. You will see if you have room to continue to cope, or if you need to make additional decisions to resist. You will be able to rationalize and not let your emotions get the better of you by letting the anxiety surrounding the words inflation and recession constantly upset you.

3. Build an emergency fund if possible

When the storm arrives, it may seem too late to build an emergency fund. Nevertheless, you never know what stage of the storm you are in. Even if the current situation already seems difficult, the worst may still be ahead.

You should still be looking to build, or strengthen, your emergency fund to prepare for the months ahead. Typically, you look to have an emergency fund to cover 3-6 months of living expenses. This will help you get by if you lose your job.

It is better to plan than to be faced with the situation and have no way to turn around.

4. Get rid of your debt

This rule applies to me at all times. If you follow it to the letter, you'll be better prepared to deal with high inflation or a recession. The debt you have to pay off each month will put you in a difficult position if your cost of living increases significantly due to inflation or if you have to deal with a recession.

So you should try to get rid of your debt as much as possible, and especially not take on any more debt. If you don't have the money to buy something, you should wait until the day you can. This will also help you avoid giving in to the consumer society that tries to make you constantly buy things you don't need.

Doing this will help you to have a good financial situation to deal with anything that may happen.

5. Remember that economic cycles are just that - cyclical

Constantly reading bad economic forecasts can be depressing. Watching the stock market fall and never reach a bottom can be depressing as well. Yet you must remember that the economy is cyclical. The economy always responds to cycles. Even the most difficult periods end sooner or later.

After the rain comes the good weather. It's a common phrase, but you need to keep it in mind because it's true in the economy.

Amid the storm, you need to focus on your cash flow and spending, keeping in mind that whatever doesn't kill you makes you stronger. You will come out of a crisis stronger if you apply these tips. So there's no need to despair despite the prevailing gloom, which can be a burden, I grant you.

Once you have decided to apply these coping tips, you should stay away from news that will only amplify that feeling of stress in the general public. Take a step back and look at the big picture and remember that it will pass, it always does.