Don't Let Your Midlife Crisis Destroy Your Financial Wellbeing

Quite predictably, most Americans will experience a psychological event sometime between their late thirties and late fifties were, due to both physical/mental changes and environmental transitions, a sense of instability or unrest settles in. Inaffectionately called the "Midlife Crisis," this phenomenon can negatively affect a family's financial stability.

Either through the stereotypical excessive spending on luxury red sports cars or indiscriminately quitting a career in exchange for picking up a less profitable hobby, it is not uncommon for midlife crises to correspond with and, in turn create a reciprocal relationship with money concerns.

The Sentiment Has Settled In; Now What?

As with any emotional event, the first step to addressing the consequential changes is to accept that the phenomenon is legitimate. Giving legitimacy to emotional difficulties is not always easy, but the freedom that ensues can allow true growth and development.

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By acknowledging that things are changing all around you, you have the ability to make changes. Left to be ignored, overlooked or even discredited, the transition between middle age and early late-adulthood can fester unhealthily.

Recognize that what you are feeling is a frequent occurrence and functions as a response to the changes outside of your control. Whether your flavor of midlife crisis manifests as dissatisfaction over career fulfilment, missed opportunities or the physical changes that come with later life, it's normal and your reactions are normal.

Break Down Your Feelings And Put A Price Tag On Them

There are many ways to address midlife crises' sentiments, and how you decide to handle those feelings is up to you and your family. The key to not annihilating your life's savings when dealing with your midlife crisis is to determine what reactions will help you manage your feelings.

Once you know that switching jobs, buying a new car, relocating, going on a shopping spree, etc. will help you confront your own mortality, you can moderate your responses.

It is okay to act on your feelings; and when you rationally place them within your unique financial context, you can fulfill your desires without eradicating your financial security.

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The key is to balance risk and reward. By thinking through your desired reactions and their monetary consequences, you can stave off the financial damage associated with unchecked spending fueled by emotion.

While not reacting in any financial way would obviously be the least detrimental to your bank account, it is not necessarily the best course of action. Instead, monitor your spending.

Financial Life Focus President Michael Kay commented on finances and midlife crises in a Psychology Today article, "It would be great if we all had the financial and emotional flexibility to handle any and all challenges…but that's rarely the case. Life happens and all we can do is the best we can do. In the midst of a crisis, specifying your resources and asking for help can be the best solution possible."

Money management can be extremely difficult if you are under any sort of emotional or mental duress. Remember that there are people dedicated to helping you face your struggles, whatever they may be. If you feel that you may be suffering from a midlife crisis and its very real consequences, reach out to your financial planner or advisor. Address and validate your situation and work together to develop a plan to deal with your situation. With the proper budgeting and guidance, you can meet your unique midlife crisis needs without suffering the financial consequences of reckless spending.