Cost of living: financial stress & how it affects our mental health

The rise in the cost of living has had a growing impact on all individuals. With everything becoming increasingly more and more expensive, individuals and families are suffering.

We have seen an increase in energy, fuel, food, even things like clothing have risen in price.

The cost of living crisis is the ‘top concern’ for families as financial stress intensifies. Families are having to choose between heating and electricity and food to feed their families. This can trigger stress, anxiety and depression. 

A report by Aviva found that more than 54% of employees feel anxious when dealing with their finances, with generation z and millenials (people aged between 18-41) reporting the highest levels of financial anxiety.

Financial stress:

Anyone can experience financial stress, although households with a low income may experience financial stress more often. During the cost of living crisis, it appears many households are suffering; including low-income families and households who have a higher income. 

Not being in control of your finances, having debts pile up, not having enough income to meet yours and your families needs (rent, bills, food, etc.) and constant price increase which you cannot keep up with are all factors that could lead to financial stress. 

Financial stress can escalate and cause a person to suffer from anxiety and depression. 

How financial stress can affect our mental health:

As mentioned above, financial stress can ultimately progress into anxiety and/or depression. Financial stress can also cause a person to feel socially withdrawn, insomnia and create unhealthy coping mechanisms. 

Understanding how financial stress can affect mental health can help individuals develop healthier coping strategies to improve their situation and stop the cycle. 

 

Ways to cope with financial stress:

• Understand your situation - write down all of your income sources and expenses, including any debts. Be honest, this will show you where you stand in regard to your financial situation. 
• Create a budget plan - after writing down all of your expenses, it’s time to see where you are overspending and can cut back.
• Reducing debt - this will give you a sense of achievement and help improve your finances. 
• Do not compare your life to others. 
• Think positive - easier said than done but focus on looking forward and focusing on the actions you need to take to improve your situation.