What Is Financial Shock and How to Survive

What Is Financial Shock and How to Survive

Financial shock can happen to almost anyone. Those who lost their jobs at the height of the COVID pandemic may have experienced this feeling. Almost any kind of major financial change, whether expected or unexpected, can induce financial shock. Part of surviving this is understanding financial shock and ways to overcome major financial changes. If your financial changes have led to bankruptcy, then consider talking with a Chattanooga bankruptcy lawyer about your options.


One way to describe financial shock is a sudden unexpected change in someone’s financial situation. Common examples include being fired, having your paycheck reduced, a major disaster leading to financial losses, and major medical expenses. At the same time, some forms of financial shock might be somewhat expected.

For example, certain medical conditions might be expected to worsen and lead to higher medical bills. Unemployment might be expected when jobs are scarce or COVID numbers start increasing again. When people hear about upcoming economic changes, they may start having some expectations of new financial hardships.

These can build up to financial shock when the person realizes they will not have the money they thought they would have. Financial shock can be summed up as being placed in a situation where you are losing more money than you thought you were going to lose. The shock factor revolves around anxiety concerning whether you will be able to escape the financial situation or not.

Other examples of financial shock include divorce, being widowed, house repairs, car repairs, car accidents, sudden increases in bills, gas price changes, and inflation. The first step in overcoming financial shock is understanding what financial shock is and whether you are experiencing this. Then you can take an inventory and start figuring out what is causing your financial shock.


Surviving financial shock is all about your mindset and what you can do practically. Taking an inventory of personal finances can have a powerful effect on your financial outlook. This may help reduce your financial shock by reminding and reassuring you that you will survive.

A financial inventory involves listing out every source of income for you and every monthly expense you are dealing with. Incorporate the expenses from your financial shock. Use this information to figure out your chances of recovering financially. Do this by looking at what money you have leftover each month and start cutting unnecessary expenses.

Following tips for stress management can also help. Having your mindset in a calmer place will help you make better decisions. Remind yourself of what you know is true by examining your financial situation and developing a practical plan. Write down the positive things you have going on, research helpful resources, and identify your financial strengths.


You may not have to face the stress of bankruptcy alone. Feel free to call us at Tom Bible Law by dialing (423) 690-7712 for a consultation today about your options. Our experienced team of Tennessee bankruptcy attorneys can help you navigate your bankruptcy situation. We can be found in the Tennessee cities of Chattanooga and Tullahoma.