Loss of income, not identity: navigating the psychology of retrenchment

Sixty-one per cent of households say they would hit their breaking point within six months of losing their income. But the financial consequences of retrenchment, as real as they are, may not be the hardest part to navigate. The psychology of it, the shame, the identity crisis, the urge to make permanent decisions while the nervous system is still in threat mode, that is where the real damage tends to happen.

In this episode of Money Hacks, a podcast by The Business Times, Howie Lim speaks with financial psychologist Dr Annabelle Chow for a conversation that treats retrenchment as what it actually is: not just a financial event, but a family system event with profound psychological consequences.

Why listen

• Why the biggest financial mistake happens in the first 48 hours  It is rarely about money. Dr Chow explains why the urge to act immediately is the most dangerous impulse of all, and what to do instead.

• Why three months of emergency savings may no longer be enough  For mid-career professionals carrying mortgages, school fees, ageing parents and car payments, Dr Chow makes the case for rethinking the standard entirely.

• Why separating your identity from your job title is harder than anyone admits  Dr Chow does not pretend otherwise. Her advice on how to make values-based decisions while the pain is still raw is one of the most useful things in this episode.

• How to tell your spouse, your children and your family without spreading panic  Dr Chow gives a simple structure for the conversation most people dread having, including what to say to young children and how to hold the relationship together under pressure.

Retrenchment is not just a financial problem. This episode treats it with the seriousness it deserves. Listen now.

Discover more episodes at bt.sg/podcasts. Got feedback? Email us at btpodcasts@sph.com.sg

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Written and hosted by: Howie Lim (howielim@sph.com.sg)

With Dr Annabelle Chow, financial psychologist, Annabelle Psychology

Edited by: Howie Lim & Claressa Monteiro

Produced by: Howie Lim & Chai Pei Chieh

A podcast by BT Podcasts, The Business Times, SPH Media

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