The Cost of Living Crisis and Your Mental Health

We’re all feeling it - groceries, gas, essentials, and even the finer things in life are all costing much more than they used to. But the rising cost of living can be more than just a challenge for our wallets, it can also take a significant toll on our mental health. Money and finances can be a tremendous stressor on our mental health and even our relationships - you may have experienced the anxiety, depression, and strain within families that financial strain can cause. But amidst these challenges, there are ways we can protect ourselves, our mental health, and our relationships from money stress.

Understand Your Financial Stress

Before anything else, we need to first understand what is happening. Financial stress is often more than worry about money. It can evoke a deep sense of fear and uncertainty about the future, undermine our self esteem, and even trigger feelings of shame or failure. That means when we’re talking about money, recognizing that the conversation will actually need to include our sense of security, our fears, our shame, our self worth, and other challenging feelings is the first step in the battle. Once we understand that, we’ll be better prepared to have a truly comprehensive and empowering conversation about the stress of money in our lives.

Communicate Openly

When under financial strain, communication with your partner, family members, or anyone else that shares financial burden/impact is crucial. Open discussions about finances can be difficult, our society is set up in a way to discourage transparency and openness about our financial lives. However, that openness and vulnerability are essential for navigating this stress as a united front. Set aside regular times to talk about your financial situation, plans, and concerns. Ensure these conversations are blame-free and solution-focused to enhance support and understanding among all involved. The goal is to come up with a plan, not to shame or judge anyone.

Budget with Compassion

Budgeting can often feel restrictive, particularly when funds are tight. However, approaching your budget with a sense of compassion and realism can help. Recognize that your budget needs to support not only financial goals but also mental well-being. Allow for adjustments and include small, manageable allowances for self-care or activities that can provide relief and joy, even in challenging times. Recognize that even in the midst of an economic crisis, you are worth investing into.

Prioritize Mental Health

Financial stress can easily push mental health to the back burner, and understandably so. When you’re worried about putting food on the table or keeping a roof over your family’s head, taking care of your own mental health may seem like a laughable luxury. But maintaining your own mental wellbeing is crucial. It’s cliche but true - you can’t pour from an empty cup, and a car can’t keep running on an empty gas tank. Techniques such as mindfulness, meditation, and regular physical activity can significantly reduce stress levels. Prioritizing your mental health doesn’t have to be expensive, either in time or money, and even these small ways can be impactful.

Set Realistic Goals

With the high cost of living, financial goals that were once attainable may now seem out of reach. It's important to set new, realistic goals that match your current situation. This may seem hard to do, especially if you’re surrounded by “back in my day” narratives, or “so and so was able to do XYZ, why can’t I?”. But it’s important to realize that nobody exists with the same set of circumstances as you, and your circumstances may necessitate different goals that reflect that. Break your larger goals into smaller, more manageable milestones. And don’t forget to celebrate these small victories! They can provide a sense of achievement and a psychological boost during tough times.

Find Community Support

Remember, you are not alone in facing these challenges. Many people are experiencing similar struggles. Seeking community support can provide a buffer against the isolation that financial stress can bring. Community resources, support groups, or even online forums can offer practical advice and emotional support, which can be incredibly affirming.

Learn to Adapt

Flexibility can be a vital skill when dealing with financial instability. This might mean changing your living situation, revising career goals, or adjusting lifestyle expectations. While change can be difficult, adapting to your circumstances can reduce stress and open up new possibilities for personal and financial growth.

Focus on What You Can Control

In times of financial uncertainty and feeling disempowered in the economic downturn, focusing on aspects of your life that you can control may help alleviate those feelings of powerlessness. Whether it’s planning meals to reduce food expenses, finding cost-effective ways to enjoy leisure time, or simply organizing your space to improve your living environment, small actions can lead to significant improvements in your mood and stress levels.

Embrace Simplicity

A high cost of living can force us to reconsider what’s truly important. Embracing a simpler lifestyle can reduce financial strain and offer unexpected benefits in wellbeing. This might look like prioritizing quality time with loved ones over costly outings, or choosing less expensive but healthier eating habits.

Stay Hopeful

Finally, maintain hope. Financial situations can change, and hardships don’t last forever. Keeping a hopeful outlook can not only help you mentally cope with the present challenges but can also motivate you to continue working towards a better financial future. Nothing stays constant forever, and that includes economic downturns. It may be hard for now, but remembering that it won’t stay this way forever can bring you that hope to start to turn your mental health tide.

At the End of the Day, Remember..

…that dealing with financial stress amidst a rising cost of living requires resilience and adaptability. Living during an economic downturn means not just managing money, but also caring for your mental health and relationships. By understanding and discussing your feelings, prioritizing mental health, setting realistic goals, and finding joy in the simpler aspects of life, you can navigate these challenging times more effectively. Your financial situation does not define you, and with the right tools and support, you can emerge stronger. And if you’d like a safe space to further explore the impact that money has had on your life or relationships, please reach out for a free consultation.