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ESG Investing: What You Need to Know
Finance

ESG Investing: What You Need to Know

ESG investing helps you build a more ethical portfolio. The letters ESG stand for environmental, social and governance, and ESG investing is a form of socially responsible investment that aligns with your values. According to financial site NerdWallet, socially responsible investing has taken the world by storm, “and providers and investors alike are scrambling to jump aboard the sustainable bandwagon.” Companies are often vocal, and even outspoken, about where their alliances stand when it comes to certain causes. For example, a factory may only use eco-friendly, solar-powered machinery, which may appeal to a certain investor who supports green causes. If the earth’s carbon footprint is important to you, this is a company you may personally want to support. Against animal testing? Perhaps a cosmetics brand that does not test any ingredients on animals the company is for you. If you decide that socially responsible investments are something you’re interested in, you can always research and verify that the company’s values align with yours. Even though there are many ways to make extra money, for some investors, a lack of connection on this level can be a dealbreaker.How to get started with socially responsible investingIf you’re new to ESG investments, don’t panic. Yes, launching a portfolio and then researching companies that are as like-minded as you are can be daunting, but only if you let it! Governance investing, and researching the overlap between a company’s ESG criteria and your own values can actually be fun. NerdWallet outlines some helpful ways to get started. And, of course, consulting with a finance expert, stockbroker, and/or accountant is a fantastic idea too.Explore financial markets and ESG companies that resonate with youAccording to MotleyFool, the financial performance of ESG stocks has recently drawn investor attention, and they want more. “During the market turbulence related to the COVID-19 pandemic, many companies with strong ESG track records showed lower volatility than their non-ESG counterparts,” explains the finance site.Additionally, to many esg investors, that performance validated ESG investing and its premise -- that good corporate behavior results in better business. MotleyFool advises you to “make your portfolio reflect your best vision for our future. Always be thinking ahead. Be optimistic. Think about the world that you want to create, because sure enough your dollars and mine, our capital, is helping shape the world.”Michael Sikorsky, CEO of Copia Wealth Studios, says: “Most important, don’t look at the dollars generated, look at your return in terms of percentage.” For example, imagine you invest $100 dollars, and it rises to $120 dollars. “That is only $20 dollars for lunch. Does not seem worth it, does it? However, that is a 20% return, which is amazing.”Additional contextIf you are unsure or new to investing, advises Sikorsky, start with a diversification strategy. “For example: Pick a broad-based ETF vs. say 2 to 3 company names.”Sikorsky also says to track your investing in a google sheet, and journal why you are buying, and journal why would you sell before you even buy? “Document your time horizon for this investment, etc. This stops narrative shifting and grows your skills as an investor.”He adds: “Decide what you are benchmarking against. Always have a benchmark to compare yourself to. Everyone needs a yardstick in order to grow taller.”Read up on companies--thoroughlyOnce you’re ready to create an ESG-style investment portfolio, it’s time to deep dive into the company. Put your research and investigative cap on. Look up a company’s sustainability initiatives and check to see if a company's values are “in alignment with your moral compass,” stresses NerdWallet. (PeopleImages / Getty)For example, if a large company donates some amount of money every month to breast cancer research, and that appeals to you as a breast cancer survivor, this may be a brand you want to throw your hard-earned money behind.Open a brokerage accountYou cannot start ESG investing until you set up a brokerage account, such as TD Ameritrade, Robinhood, E-Trade Financial, and so forth.A brokerage account helps you buy and sell securities, explains NerdWallet, like stocks, bonds and mutual funds. Currency is transferred in and out of brokerage accounts—similar to a bank account--but unlike banks, brokerage accounts give you stock market access. (And FYI: brokerage accounts are also referred to as taxable accounts, because investment income within a brokerage account is taxed as a capital gain.)Again, this can be overwhelming so keep this in mind: some brokerages offer resources to help you sift through various ESG (or sustainable/socially responsible/ethical) investments. Building an investment portfolio takes time, stresses NerdWallet, especially when you are trying to find investments that align with a particular framework, such as ESG. Do as much research as you can before financially supporting a company that catches your eyes.Consider working with a Robo-advisorHelp is on the way if you need it in the form of Robo-advisors; digital advisors who build and manage investment portfolios. To be upfront, they’re often times less expensive than in-person advisors. (Not that an in-person advisor isn’t quite resourceful.) Today, many robo-advisors are allowing investors to opt into a sustainable portfolio for no additional charge. Just make sure the Robo-advisor knows which causes and missions align with your values when helping you lock down your socially responsible portfolio.Sustainable investing: Thinking about your valuesWhat if you have too many values, too many causes that are personally important to you? You can’t invest in nineteen companies at once… (well, you can if you have the finances, but that’s still a lot.)Says NerdWallet: “ESG has some pretty clear boundaries, especially in comparison to “ethical investing” or “socially responsible investing,” but that doesn’t mean it fits perfectly with your beliefs.”Never forget that values differ from individual to individual, so really think about scenarios and viewpoints most important to you, and see if any fall outside of what “ESG” entails.For example, Muslim investors may want to ensure that their investments comply with Islamic law. Or, let’s say a corporation vocally supports Planned Parenthood but you’re staunchly pro-life. This may not be the company for you to financially back.Also, if you’re willing to make an exception, that’s OK as well. Do what feels right, and what you can financially juggle. As they say, put your money where your mouth is, so if you’re really passionate about something such as the planet’s carbon footprint, look into sustainable investing that aligns with your passion for the environment.How does ESG investing work? Congrats! You’ve set up your brokerage account and you know what industries (or solo companies) you want to support with your investment strategy and investment dollars. Here are the next steps.First, read reviews from independent research firms (such as Morningstar, as recommended by NerdWallet) which can show you how a company or fund “scores” in terms of ESG investing factors. This will help you decide whether you’d like to invest in them.If a certain company catches your eyes, and you think it has growth potential, consider buying its stock. Check and see if that company has an impact report, which features any sustainable or cultural initiatives the company has implemented over the years. Curious how a company scores in terms of its work environment? Popular business sites such as Glassdoor can give you “scoop” on the company’s inner working and internal vibe and culture.Adding mutual funds The number of ESG funds has surged in recent years, says Morningstar Data in a 2020 study. You’re not the only one interested! This study explained there were 303 open-end and exchange-traded funds in 2019, which was up from 270 in 2018. “Some of these funds focus on a particular issue, such as green energy, making it easy to personalize your portfolio’s area of impact,” explains NerdWallet. So, ask your broker if they offer a mutual fund screening tool. With it, you can compare different funds to further explore their ESG ratings. Want the nitty gritty? For additional details of a particular fund, says NerdWallet, such as what companies the fund invests in, you’ll want to look through its prospectus. “This document should be available on your online broker’s website, and will include other helpful information like the fund’s expense ratio.” (Defined as annual fees taken as a percentage of an investment.) A mutual fund calendar can help you figure out how much you’d pay to own a specific fund.How ESG’s are scoredThey’re calculated by various companies that use a variety of methodologies. Most providers outline specific ESG indicators. Additionally, says NerdWallet, the way providers acquire their data differs as well. “For example, MSCI ESG Research, one of the largest independent providers of ESG ratings, uses data that is collected from both company disclosures and government, academic and NGO databases.” (JOHANNES EISELE / Contributor / Getty)Plus, the finance site points out, The Dow Jones Sustainability Index “uses an industry-specific questionnaire to gather self-reported data from participating companies.” CFA Institute plays a crucial role in ESP analysis; they’re a leader in environmental, social, and governance (ESG) factors in financial analysis. Outlining ESG metricsToday, investors incorporate ESG data into the investment process to gain a fuller understanding of the companies in which they invest. As outlined on the CFA Institute website, investors are” increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities.”ESG metrics are not usually part of mandatory financial reporting, states CFA Institute, though companies are more and more often disclosing them in their annual report or in a standalone sustainability report. They know potential investors want to see these stats.“Numerous institutions, such as the Sustainability Accounting Standards Board (SASB), the Global Reporting Initiative (GRI), and the Task Force on Climate-related Financial Disclosures (TCFD) are working to form standards and define materiality to facilitate incorporation of these factors into the investment process,” says CFA Institute. As the demand for ESG investing increases, on the flip side there are specific key trends emerging. The coronavirus pandemic has affected investing as a whole, and, says CFA Institute, “intensified discussions about the interconnectedness of sustainability and the financial system.” In response, CFA Institute is producing valuable research, collaborating with experts and practitioners for discussion, “and setting standards to enable the mainstreaming of ESG investing.”Conviction and diversificationThere really is a conviction and diversification framework to consider when investing, says Sikorsky. “When it comes to diversification, you have a belief in the ‘sector’ or ‘approach’ but you don’t have belief in any few names of companies. This has the trend for lower returns and hence a lower chance of loss of capital. “Adds Sikorsky: “You have belief in a few names of companies, so you’re willing to be concentrated amongst them. This has the trend for higher returns and hence, the higher chance of loss of capital.”It’s very possible to invest and make money while also being ethical. “Investing can go both up and down,” says Sikorsky. “But look at this: S&P 500 annual historical returns since 1926 is 8 percent. Let’s take a concrete example and look at an ETF under the symbol GRID. GRID is First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index.”You can also look up its ESG score and factors using this. “Then you can break down many factors from each of the classes of ESG.”Analyzing the ESG scoreRemember: anyone can buy an ESG fund with low amounts of money and feel good they are investing sustainably.According to Craig Kirsner from Stuart Estate Planning Wealth Advisors, a company's ESG score is, simply put, a numerical measure of how it is perceived to be performing on a wide range of environmental, social and governance (ESG) topics. One way to learn the ESG number is by going to MSCI's website.Or you can subscribe to Morningstar Direct ESG service. Fidelity, says Kirsner, also has a nice page on ESG investing here. The major benefits of ESG investing“You get to be part of the change you want to see in the world,” says Sikorsky, referring to his fave quote: “Never underestimate the impact of a small act.” --Tory Burch.And, adds Sikorsky, according to a Morgan Stanley Institute for Sustainable Investing report: In a study of more than 11,000 mutual funds, they found there is no financial trade-off in the returns of sustainable funds compared to traditional funds, and they demonstrate lower downside risk.“Strong statistical evidence that sustainable funds are more stable.” Stresses Sikorsky: “In summary, impact investing is good for your wallet as well.”Today, adds Kirsner, more people want to invest responsibly, so some of the world's largest companies are acknowledging the importance of issues such as climate change, human rights and social inequality. Take a chance and invest and watch your portfolio grow— while simultaneously investing in your passion and conscience. Need more inspiration? Take a look at these money quotes, they may just change your perspective on making money!

Analyzing FOMO: Fear of Missing Out
Mindset

Analyzing FOMO: Fear of Missing Out

Many overtired parents joke that their kids have FOMO (fear of missing out) because their children refuse to go to bed. Kids want to stay up late with their parents because to babies, children, and teens, why go to bed when they can stay up and engage in all the fun their parents are having at night? Experiencing FOMO is actually very common among young adults, especially those who engage in any sort of social media usage. It’s a legit fear of missing out, a form of social anxiety that gives you the feeling that everyone else is having “fun” and enjoying life without you, even if you don’t know the person personally.FOMO is that feeling that you lack a major element of life satisfaction, and is becoming increasingly common among adults of all ages. Let’s explore more about FOMO as a human behavior and ways you can combat FOMO without feeling lonely.The psychology of FOMOFOMO, experts explain, is a term coined in 2002 by marketing strategist Dan Herman, and was included in the Oxford Dictionary in 2013, with this official definition: “Anxiety that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on social media.”Don’t let FOMO stand in the way of your personal happiness in the real world. Just because social media platforms make it seem like friends, celebs, or total strangers look like they’re enjoying life and having wonderful experiences—and it’s making you envious—doesn’t mean they’re really happy. Not everything you see online is real, and not all social media engagement is positive. Life satisfaction and Social Media: How Do You Know if You Have FOMO?How do you know if you have FOMO? Let’s say, for example, money is tight, you’re extremely busy at work, you’re not eating well, feeling like your life is at a standstill, and you’re unsure of what to do “next” in your own life that’s exciting. You check Facebook or Instagram and notice two friends (and are they really your “friends” or people you just know socially?) are clinking margarita glasses together on a fancy boat. They’re smiling wide, they look great with their dewey skin and sparkly eyes, and their lives seem amazing and that they're having way more fun than you. Suddenly, you’re jealous. Before you know it, you’re inundated with an invisible form of societal pressure, transmitted directly through your social networks. Why do they get to have a fun day on the water, carefree, while you’re home stressed out, as usual? Don’t they have any problems? Suddenly, their lives look pretty darn awesome, and your real life….just doesn’t.That’s FOMO. It’s sometimes described, says TIME.com, as not just the sense that you could be doing more with your life; but also feeling like “life is short” and you’re missing out on important moments others are currently experiencing. You may ponder things such as: “Why did I gain 15 lbs in 3 months, why am I working overtime, why did I have to cancel my tropical vacation, and why am I single?” And these overwhelming feelings are compounded oftentimes by “happy” pictures of others on social media, making you feel worse than you should. Social Media Usage, Human Behavior and How to Deal with FOMOWhy do people experience FOMO? Because they’re unhappy in their own lives and/or craving connections—and that’s normal. We all have moments when we’re not happy or super stressed out, or wondering why we don’t have anything “exciting” going on. According to experts, not shockingly, research shows that adolescents use social networking sites at a high rate and as a result, may experience FOMO as a result. However, on the flip side of that, FOMO acts as a mechanism that triggers higher social networking usage.(Manuel Breva Colmeiro / Getty)Meaning, if you’re feeling unfulfilled, chances are you’ll spend more time on social media sites—and basically, you become addicted to your computer or cell phone hoping to alleviate boredom…but instead, experience negative effects like FOMO.Getting over FOMOIf you’re experiencing FOMO, here are some ways to combat it:Cancel social media Sick and tired of seeing all these happy, shiny people on your social media feed? Unfollow them, or temporarily suspend your account. It goes without saying, the less time you spend on these “interactive” sites, the better your overall well being. Easier said than done, but see how much more accomplished you feel without the time—and soul—suck of social media sites. It could even help build (or re-build) your self-esteem.Count your blessingsFine, even for a brief moment, you may not have what others have, but be grateful for what you do have. A roof over your head? A best friend? A puppy? To some, you’ve got what they want. Appreciate the little—and big—things you have in life instead of what’s missing. (And remember what’s missing could be temporary.)Journal or scrapbookIf you’re experiencing FOMO, consider keeping a journal and write down all your feelings. Not only will this be therapeutic for the body, mind and soul, and give you some clarity, but putting the pen to paper will keep you away from falling down the social media “rabbit hole.” Also, take some time to look over photos from a great memory in your life—from a tropical trip or a day with your best friends—as reminders you’ve had special moments that indeed made you feel warm and fuzzy.See people in personRather than seeking connections online, which can just enhance feelings of loneliness, catch up with a good friend or family member in-person. Not only will it keep your mind busy and off social media, but loneliness is actually a healthy reminder about the importance of person-to-person bonds. Plus, if you make lunch or dinner plans with a friend outside the home, chances are you’ll have such a good time you’ll feel much better about yourself—and stay off social media. Keeping busy can be great—it lifts your spirits.Help othersIf you’re feeling blue, and experiencing FOMO, help others. Of course, it will keep you busy, but also make others feel good—and that’s the secret sauce of fighting off FOMO. Offer to babysit for a neighbor or spend a day volunteering at a shelter or collecting canned goods for a food bank. When you feel good, your heart soars—and again, you’re too busy to feel triggered by online FOMO. Remember not everything you see is realRemind yourself thta nearly three quarters of the online images you see of people enjoying life to the fullest are probably a façade—it’s not always real. Chances are, you have no clue what’s really going on in their lives—the good, the bad, and the ugly. Remind yourself everyone is going through something. No one’s life is all peaches and cream. Social media can be fun, but it’s also great to take breaks from it for your mental health. Additionally, comparing yourself to others is self-destructive. Combat FOMO before it starts by reminding yourself of all the good you have in your own life—it’s cliched, but true—focus on the positive. Be grateful for what—and who—you have. If you’re truly feeling pangs of jealousy, consider chatting with a therapist because FOMO is a real condition that can even negatively your sleeping and eating habit. It can even trigger depression—be aware of that.Change your perspectiveA change in outlook can also help prevent and fight off FOMO. Kristen Fuller, M.D. of Psychology Today discussed the acronym JOMO: Joy of missing out.She described JOMO as “the emotionally intelligent antidote to FOMO and is essentially about being present and being content with where you are at in life.” JOMO, she adds, helps people not only escape the world of social media—which can be toxic—but find their inner peace while zeroing in on person-to-person relationships.So, shut down your phone or laptop, spend some time enjoying the great outdoors and don’t allow FOMO to consume your life. Focus on you, remember that the lives of others is often an illusion, and remember that life is short—are you going to look back on it and wish you spent more time on your computer?

Bouncing Back from Burnout: A Comprehensive Guide
Emotional Health

Bouncing Back from Burnout: A Comprehensive Guide

How often do you make offhand comments about being burned out from, well…life in general? If stress seems never-ending and you’re compounded by feelings of boredom, chances are you’re experiencing burn out. Burnout is a stress condition that zaps all your energy, affects everyday tasks, can hurt otherwise healthy sleep habits, and make you feel like you have little or no control in your day to day life. Burnout can lead to anxiety disorders, trouble with family members, and lead to extreme exhaustion, whether physical, mental, and emotional. Let’s explore more about the effect it has on your body, mind, and soul, and how you can bounce back from the “burn.”What is burnout?According to Psychology Today, burnout is “a state of physical, mental, and often emotional exhaustion brought on by prolonged or repeated stress. Though it’s most often caused by problems at work, it can also appear in other areas of life, such as parenting, caretaking, or romantic relationships.”It’s a real emotion triggered by stress, and it’s pretty common, so know you’re not alone if you feel like you just want to walk away from a situation that feels unbearable. It’s also something you can fight off mentally when the world feels like it’s closing in on you. Stress relief is possible.Physical symptoms: How to know if you have burnoutIf constant stress and a poor work life balance leaves you feeling helpless, disillusioned and completely exhausted you may be on the road to burnout. So, check in with your emotions.HelpGuide says: “Burnout reduces productivity and saps your energy, leaving you feeling increasingly helpless, hopeless, cynical, and resentful. Eventually, you may feel like you have nothing more to give.”When you have burnout, everything feels so overwhelming you stop caring and feel unappreciated. It’s scary and upsetting to feel this way. For your own sense of well being, it pays huge dividends to incorporate some self care practices into your lift to help overcome it.Burnout spills over into every area of life and can affect your relationships and day-to-day function. Not to mention, since it’s a stress, it can affect your health and make you susceptible to illness that you can’t fight off easily because stress levels have weakened your immunity. It may even cause you to turn to junk foods and sugar to keep you “motivated.” Giving up on a healthy diet is not the best idea, as it can lead to a snowball effect that keeps you down. But is it burnout?Of course, we’re human. Most of us have days when we feel completely unappreciated, have too many responsibilities to handle, or feel exhausted and unmotivated simultaneously—but if you feel this way almost every single day, chances are, it's burnout. HelpGuide sheds some light on why burnout is a gradual process: "It doesn’t happen overnight, but it can creep up on you when you least express it. The signs and symptoms are subtle at first, but become worse as time goes on.” Sometimes it rears its head as a series of frequent illnesses, trouble in family life, frequent headaches - the list goes on. But you owe it to yourself to counter burnout any way you can. No one should feel overwhelmed all the time. When you spot the early signs of burnout in advance, pay attention to them and work on reducing your stress levels immediately to prevent a major breakdown and clear your mind.How to move past burnout and improve mental healthYou truly can fight off depression and burnout—stay positive! And if you’re not sure where to start, it’s always possible to speak to an appropriate health care professional. They provide medical advice on a wide range of subjects, and burnout-related mental health issues definitely fall into the list. Change your work vibeIf work is so stressful you dread it every single day, discuss with your boss ways you can reorganize tasks to make everything more manageable for you. Work can be a huge component of burnout, but it’s entirely possible understanding co-workers can make it easier for you. Or, honestly, seek employment elsewhere. Maybe this burnout is a sign that it’s just time to move on, job-wise. Speak up at work and explain you’re feeling overwhelmed—or start job-hunting for something new and more fulfilling.The power of “no”Learn to say no. For some, saying NO is impossible because your instinct is to want to be kind and helpful. It may be one of the personality traits that you’re most proud of! Well, when stress levels consume your life, NO will be your new power word—embrace it. Can you cover my shift tomorrow? “No, sorry.” Can you drive me to the airport at 6am? “NO, sorry.” You need your sleep after weeks of mental burnout - take care of yourself first. It’s the same concept as being in the airplane, and they instruct you (in the event of a crash) to put on your own oxygen mask first, then your child. When your emotional immune system is feeling stronger, and when you’re feeling more like yourself, THEN you can start saying ‘yes’ again. But remember, prioritize yourself. Keep the word “no” in your back pocket - and use it frequently, until the stressful situations are more under control. It will help your underlying health conditions, and may even help prevent burnout. Set boundaries and breaks (and stick to them) to avoid chronic stressWhen the going gets tough…give yourself a break—literally. For example, devote a solid hour to do actual work, set a timer, and as soon as 60 minutes is up go for a brisk walk outside for 20 minutes before returning to your work environment. Chances are, you’ll feel rejuvenated, and some of your happier personality characteristics will start to re-emerge.Or, if you work in a major city, schedule your lunch break around 3pm—a time when most people feel really sluggish—and commit to that ‘off’ time to browse shops for an hour or grab lunch at a local café. Really committing to breaks on zany days can provide pockets of happiness that help push you through when you’re experiencing burnout.Stop multitaskingUgh, how often do we try to do 12 different things in an hour? Too often! Multi-taking is a major stress and burnout trigger. Listen, let’s be real—you’re not a superhero. (Sorry…) When it comes to work, family, friends, bills, there’s only so many hours in the day. If you can’t get it all done in 12 hours…oh, well! There’s always tomorrow or the next day. Congrats, you’re human, and it doesn’t mean you have a pessimistic outlook to acknowledge that you can’t do it all. Focus on tasks that take priority and sprinkle out everything else you need to tackle over the week. Watch your burnout level decrease once you delegate tasks to others, or remind yourself you can’t do it all in one day.Nourish your relationshipsLife is short. You never want to live with regrets. Think about those you cherish—spouse, kids, friends. These people have your heart, and they should take priority. Reminder yourself no matter how burned out you are, you love others, they love you back, and it’s a beautiful thing. Instead of working overtime and stressing yourself out, focus on cultivating the real-life relationships you have. These special people make life worth living and enjoying—and remind you shouldn’t sweat the “small stuff.”Adapt self-care routinesAs you crawl out of your burnout hole by changing your schedule and frame of mind, don’t neglect yourself en route. Throw yourself back into hobbies that used to bring you joy, such as golfing, running, or even reading romance novels. (Chev Wilkinson / Getty)Perhaps treat yourself to a massage or facial or book a mini-vacation with a friend to restore some calm and peace within yourself and de-stress. Once you tap back into things that used to fulfill your life, everything else won’t seem so emotionally daunting. Also look into yoga or local fitness classes to get the body moving.Consider changing your work locationIf walking into an office is stressing you out, consider working remotely for a change of pace. Or, if it’s hard to work remotely because your family is constantly “in the way” and distracting you, consider returning to the office so you can focus better on work tasks. If traffic is a huge morning stressor for you, consider carpooling with a co-worker to work instead of taking the bus or subway to work instead to “change things up.” These minor changes can mean so much for your psyche. Some New Yorkers even exit at a subway station NOT close to their office building so they can enjoy a 15-minute morning walk to their office, which gives them time to clear their minds, stress their legs, and get some sunlight before heading into work. These “little things” mean a lot in terms of handling burnout.ConclusionSo many people experience burnout. It’s very common. Life throws us so many curveballs, especially at work, but you can push through the depression, exhaustion, and feelings of hopelessness by changing your schedule and attitude and being aware of your emotions. And if some of the tips and tricks above didn’t do the trick, never shy away from seeking professional medical advice from someone you trust.

Achieving Resilience: The Importance of Bouncing Back
Emotional Health

Achieving Resilience: The Importance of Bouncing Back

Never forget that you are stronger than you give yourself credit for. Think of everything you have accomplished in life thus far, from graduating high school or college, to meeting a new friend when you were feeling shy, to passing your driver’s test, to getting a compliment from a co-worker for a job well done. The going gets tough, but you are tougher. You are resilient as Rocky Balboa—and if you have moments when you don’t believe that, give yourself that positive message anyway. There’s power in manifestation and self-assurance.Breaking down the definitionThe American Psychological Association defines resilience as “the process and outcome of successfully adapting to difficult or challenging life experiences, especially through mental, emotional, and behavioral flexibility and adjustment to external and internal demands.”In other words, the word resilience refers to one’s ability to emotionally and even physically “bounce back” after a trauma or upsetting era in their lives. In this article, we’re focusing on one’s psychological resilience and emotional resilience, and less on physical resilience. “Resilience is a personality trait that can be improved and it’s related to a plethora of positive outcomes,” explains Tyreese R. McAllister, LPC, CSOTP, a licensed mental health practitioner. “Resilience in general is a skillset that can be learned; it’s often built by exposure to very challenging, but manageable experiences.”The point is, it is not innate - you have to develop resilience over time. You’re not just born a superhero who never gets upset. That sounds like an amazing trait to have, but, like everyone else, you are human and need to work on your own individual resiliency; step-by-step. You must hone your mental toughness and develop coping skills to help overcome adversity and improve self-esteem. (Edwin Tan / Getty)Bouncing backHow come some people seem to focus on the “positive” – or “bounce back” -- better than others do? Why do some people wallow, mope, and feel distracted all day using unhealthy coping mechanisms for what seems months on end, when, in contrast, others can (seemingly) move on from a stressful or sad situation with ease? How can we encourage resilience within ourselves?Questions like these are why resilience is a popular topic of discussion among therapists and non-therapists alike. That’s because resilience is an essential life skill that demonstrates your psychological strength and ability to roll with the punches.Building resilience is indeed something you can achieve—and maintain. Just believe in one thing first—yourself—and be open to learning every lesson life teaches you. After all, a common quote so many people love and even hang on their walls at home is: “One thing I’ve learned about life? It moves on.”Learning from othersResilience is contagious—no, not like catching a cold from someone! It’s contagious because if you’re going through a traumatic situation, such as an unexpected job loss after 10 years, you may ponder: what would my emotionally strongest friend do in this situation? How would they handle the blow to self-esteem and emotional pain and emerge from the shock and sadness with a smile, great attitude, and eagerness to seek new employment opportunities? Oftentimes, we are encouraged to not compare ourselves to others; that you never know what internal battles some are facing. But overall, it’s accepted in society and by mental health experts to allow others to motivate and inspire you. In that way resilience truly is contagious!Keeping itResiliency is impressive—to yourself, and to others, who (if not jealous) are inspired by your ability to handle emotional pain, and even break down, personal trauma. Thus, many hope to embolden their psychological strength and emotional resistance. It plays a role in how we deal with tragedies and difficult situations.“The more resilient we are, the more we can handle,” says Dr. Renee Solomon, CEO Forward Recovery. “We build resilience by seeing how we get ourselves through difficult situations and by having a strong support system. If we feel that we have people surrounding us and supporting us, we feel more resilient. Perception is reality so if we think we can handle something and perceive it that way, then we can.”There are many inspirational true-life stories that combine resilience with forgiveness. When going through a tough time, we view these people and their resilience through our own eyes and help to find inner peace. The art of finding inner peaceWhen the mother of a teenage school shooter in Colorado was grieving for her own son, the tragedy overall, and battling PTSD due to being the mother of a school shooter, she found the courage to do something very rare—and brave. She found the psychological strength to reach out to the victim’s families rather than hide away and pretend the tragedy never occurred. She wrote letters to the parents of every teen victim her own son gunned down, deeply apologizing for her son’s actions, and offering emotional support. She was well-aware these families will never have their child back—but she wanted to let them know she was there for them.(Eerik / Getty)In turn, many parents who received these letters dove into their souls, and decided, to heal, they needed to forgive. They needed to bounce back emotionally as best as they could. They befriended the mother who reached out to them and sparked up a genuine friendship to work through their emotional pain together. This type of resilience—in this case, the ability to forgive the mother of the teenager who murdered their own child—inspired so many families nationwide. It was an amazing demonstration of the healing resilient people can achieve through the human capacity of forgiveness. It showed once you’re emotionally strong enough, and emotionally ready, you can tap into your inner strength to guide you through the rest of your life, despite the tragedy and emotional pain your family endured. The psychology of mental strengthAs stated by the APA Help Center’s (n.d.): “Research has shown that resilience is ordinary, not extraordinary. People commonly demonstrate resilience.”You’re resilient daily and don’t even know it. Let’s imagine you’re driving to work, in traffic, and can’t find a parking spot close to the office. It’s pouring and you forgot your umbrella. Bummers all around. But you take a deep breath, park two blocks away, and race in the rain to the office. Fine, you’re a bit late, and drenched, but you made it in. Is it an ideal situation? No. But hey—you did it! You showed resilience through your coping skills; you didn’t let the circumstances out of your control (lack of parking; rain…) ruin your whole day and your mood. Kudos!It took some mental strength and emotional resistance to get to work that day. It may seem like a minor thing in the grand scheme of things, but for some people, the simple act of getting from point A (home) to Point B (work) through these nuisances, en route to their destination is just too daunting to even attempt. (And they may handle a different series of circumstances easier than you may.)Let’s clear up a big misconception: resilience isn’t about coasting through life’s many challenges unscathed. Nobody, not one person on earth, has a perfect life with no stressful or upsetting situations. While we face daily annoyances, we also face tragedies such as death and injury.Resilience centers on experiencing all the distressing curveballs that life tosses at you and thrive without resorting to unhealthy coping strategies or succumbing to mental health conditions. Easier said than done, for sure. But not impossible, as long as you have the sort of self regulation skills you need to move forward.Tackling emotional distressDeveloping resilience comes from handling pain and psychological distress. They’ll teach you a lot about how to be mentally tough over time, and how to handle everyday challenges and tamp down negative emotions.According to Medical News Today, emotional pain is a state of mental anguish that can take a wide variety of forms. It may result from a mental health issue or life event such as relationship difficulties or financial strain.And psychological distress, according to BMC Public Health/Springer is: non-specific symptoms of stress, anxiety and depression. High levels of psychological distress are indicative of impaired mental health and may reflect common mental disorders, like depressive and anxiety disorders.An individual trying to improve their resilience may acknowledge they’ve struggled in the past with anxiety disorders, so this time around, when there is a setback, they’ll do whatever they need to—spend time with close friends; go for a jog around a pond—to prevent triggering a panic attack or a bout of depression.How do we tap into and build resilience?(FG Trade / Getty)“Optimism is a strategy found in resilient people,” says Tyree. “Spiritual beliefs, emotional intelligence, cognitive and emotional flexibility and social connectedness are also found in individuals said to be resilient.” “Resilient people are those who do not dwell on the negative, and instinctively look for opportunities to grow despite their bad experience,” adds Tyree. “The best way to strengthen one's resilience is to find a sense of purpose. When my daughter was killed, I began a foundation in her honor to address gun violence.”How self-learned resilience worksSelf-learned resilience is the resilience you build within yourself. It involves being self-aware, and not being afraid to learn from distressing situations. It involves developing coping and problem solving skills through mindfulness and building psychological strength.Every day of our lives is different—even if on boring days it doesn’t seem that way! Truthfully, we have no clue how our lives will turn out, we just have to live life day by day. Everyone experiences ups—such as finding a $20 bill in an old purse or losing 30 lbs after an obesity diagnosis—these little (and big!) events should be celebrated. On the flip side, life also has downs, such as having a misunderstanding with a close friend, to more traumatic events like the death of a loved one, a severe car accident, or even an unexpected health diagnosis that shakes you to the core. Never forget some situations that are stressful are out of your control—such as a thunderstorm on your wedding day or learning a beloved family member is sick. In a way, it’s reassuring when you zero in on the fact that most ‘down’ moments are not something you can change—at all—or control. So—you learn how to cope with these ‘down’ moments.What you can and cannot controlWhen faced with a crisis or problem, it can be easy to get overwhelmed by situations that feel far beyond your control. Instead of wishing you had a glittery magic wand to change things (and how cool would that be?!) focus only on the things that can change, or some up with a few scenarios in your head. It’s great to encourage kids to develop this form of coping skill by coming up with a solution to a potential problem in advance. Let’s say, for example, your child doesn’t hit a home run in Little League that day. Instead of brushing off their upset feelings with a brusque comment such as, “Better luck next time,” perhaps say: “You did wonderful! You caught the ball in the outfield twice during the first inning! How about you hit some balls in the yard tonight with uncle Jay? Maybe he can give you some pointers!” Children develop resilience by coming up with a solution to a problem and discussing that solution, which helps them with building resilience and confidence at the same time, a true act of early self discovery.Whether you’re a child or an adult, to help build your own resilience, never hesitate to consult with a therapist. They’re trained in helping you find solutions to stressful situations to move on with life with a bit more ease.Just remember—you are never alone. We’re all fighting some type of emotional battle that’s upsetting, whether it’s internal (you’re mourning the loss of a beloved friend) or external (The offer you put in on a dream condo wasn’t accepted.) “We will always experience hardship in life. The question is what we do with it and how we learn how to cope with it,” says Dr. Solomon. “Your journey to the path of resilience is shaped by the emotional pain you’ve dealt with and processed over the years. Of course, certain factors might make some people emotionally more resilient than others.”A positive outlook can take you far in life. There’s an expression, “Fake it till you make it.” And before you roll your eyes at yet another “Look at the glass as half-full…” anecdote, realize that experts who have studied human emotions for decades conclude that those with a more positive life outlook can ‘roll’ through tough experiences with more resilience—especially if they’ve built it up over the years; and really zeroed in on what life lessons taught them. For example, Hurricane Irma wiped out thousands of homes and caused tons of property damage in Florida, Puerto Rico, and the US Virgin Isles. This was a devastating natural disaster that also resulted in many deaths. To this day, it’s noted as one of the worst hurricanes—along with Hurricane Katrina—on U.S. land.But people came together from all over the world to help those who lost their homes; bringing food, shelter, supplies, and even offering up their medical expertise. There can be prosperity and “good” out of sadness and trauma. That’s because the human spirit is resilient.Thanks to financial support from government and businesses, lots of emotional support for families suffering, and just the resiliency of the human spirit, Florida, Puerto Rico, and the US Virgin Isles “bounced back” from that frightening hurricane. It took a few years, but they rebuilt, reconstructed, and came back even stronger.And you can too.“In the face of crisis or tragedy, finding a sense of purpose can play an important role in your recovery. This might mean becoming involved in your community, cultivating your spirituality, or participating in activities that are meaningful to you,” says Tyreese R. McAllister, a mental health counselor. Embrace change(SementsovaLesia / Getty)Resilient people often utilize these events as an opportunity to branch out in new directions. While some people may be crushed by abrupt changes, highly resilient individuals are able to adapt and thrive.When you're stressed, it can be all too easy to neglect your own needs. Losing your appetite, ignoring exercise, and not getting enough sleep are all common reactions to a crisis situation. Instead, focus on building your self-nurturance skills, even when you are troubled. Make time for activities that you enjoy.By taking care of your own needs, you can boost your overall health and resilience and be fully ready to face life's challenges.Research suggests that people who are best able to come up with solutions to a problem are better able to cope with those problems than those who cannot. Whenever you encounter a new challenge, make a quick list of some of the potential ways you could solve the problem.Bouncing back from psychological distress(Povozniuk / Getty)Here’s a truth bomb: It’s NOT easy to just bounce back. You can think life is going wonderfully, then suddenly you’re in a serious car accident (not that we are wishing any tragedies on you…) or you lose your job unexpectedly. Most people won’t wake up the next day with a huge smile and think, “Oh, no big deal.” It IS a big deal…and sometimes when you’re going through psychological distress, you need extra help to get through the crushing emotions.“It is always difficult to bounce back from a tragedy. It usually requires time, understanding, distraction and a solid support system,” explains Dr. Ruth Solomon. “Time refers to having distance from the tragic event. People tend to feel better as there is more space from the event. It helps people heal and move forward as they don’t think about it every day as they did in the beginning.”After we process the event, says Dr. Solomon, “we need to be distracted so we don’t stew in our pain. Distraction can be any activity or activities that we find pleasurable such as exercise, artistic expression, or watching comedy.”Conclusion(urbazon / Getty)Life has its ups and downs—recognizing and acknowledging that is the first step is increasing your resilience. Find solutions to the problems, work your darn hardest on staying positive, turn to supportive family and friends, and don’t hesitate to seek professional help. “Engaging in self-care practices prior to traumatic events help individuals have established practices that they can engage in easily when traumatic events occur,” says mental health professional Tyreese R. McAllister. “Engaging in self-care, boosts overall health and resilience.”Don’t be so hard on yourself when bad things happen. Being upset and trying to process your emotions makes you, YOU. surround yourself with people who make you feel loved and special.Oh—and be kind to yourself. And after all—you’re only human.