Our financial situation is closely connected to our mental health and the ongoing crisis can make many people feel overwhelmed, alone, helpless and ashamed. It is important to learn how to manage this anxiety. Here are some tips on how to deal with financial stress and improve your mental health:
1. Focus on things you can control
The degree to which people believe that they, as opposed to external forces, have control over the outcome of events in their lives is called “locus of control.” People who have a strong internal locus of control believe that they are the captain of their fate and feel responsible for whatever happens in their life. During a financial crisis, they are likely to crumble with anxiety when the gap between their expectations and reality gets too intolerable. Whereas people who have a strong external locus of control believe that they don’t own the remote control of their lives. Hence, they are passive and feel like a log in a river. When they don’t like where the river is taking them, they can feel quite miserable and are prone to depressive symptoms. As with most things in life, a middle ground between the two must be discovered for the individual to be resilient amidst uncertainty. Adopting a mindset that is accountable for variables we can manipulate and accepting those things that fall outside our realm of control.
2. Review your expenses and create a budget
Knowing is half the battle. Financial literacy can be a game changer in helping us navigate through periods of uncertainty. Take out some time to assess your financial health, savings, income and expenses on a regular basis.
3. Find creative ways to reduce spending
Managing your personal finances doesn’t have to be forceful. Think instead of how you can create a net positive via your spending habits. For instance, if you care about the environment, a net positive would be using public transport more often. If you live in an area where that is not feasible, think of driving your vehicle 50-70% of the way and walking for the rest. The net positive here is for your health and the environment. We can use this mindset in other aspects like food, clothing, etc.
4. Talk to friends and family for support
Asking for help when we need it is easier said than done. Growing up, we may imbibe certain ideas from our social circle, such as “asking for help shows that you have accepted defeat” or “don’t burden and inconvenience others by asking for help.” Additionally, discussing their financial situation with others may seem taboo to many people. We don’t have to be slaves to these narratives. It is okay to share your money worries with people you love and trust and ask them how they are coping with their own financial anxiety.
5. Stop doomscrolling
The ‘shock value’ of news content has a significant impact on our well-being. It not only exacerbates our own anxiety, but may also contribute to empathic distress, wherein our concern for others is heightened and we feel a shared sense of suffering. Remember to switch from social media and news when it starts having a negative effect on you and adds to your financial anxiety. Avoid doomscrolling, which is the tendency to constantly surf through negative news online. If you must know what’s going on out there in the world, rely on long form content instead of social media.
6. Practice gratitude
Two people buy the same phone at the same time. One of them is truly grateful that they have the means to buy that phone. The other one takes it for granted or considers it normal to own the phone. A few months down the line, both face issues using the phone. The first person thinks, “oh, I have to fix it”, while the second one thinks, “I need to get rid of this and get a new one.” Now apply this difference in decision-making and attitude towards every little expenditure. It can make a huge difference. We can practice gratitude by making it a regular habit to look at what we have and appreciating it. You can do this by writing in a daily gratitude journal or with a short meditation. Over time, practicing gratitude can boost your mood and ease financial anxiety.
For further advice and support consider contacting the Australian National Debt Helpline on 1800 007 007 for financial guidance.
Working on Financial Anxiety
