Inflation & Financial Stress: Impact On Australian's Mental Health

In the heart of Melbourne, Jack*, a single father of two, meticulously reviews his household budget for the third time this week. The numbers don't lie; despite his best efforts to cut costs, the escalating prices of basic necessities are making it increasingly difficult to make ends meet. This scene, played out in countless Australian homes, paints a vivid picture of the economic pressures mounting on individuals and families nationwide. 

In the third quarter of 2023, Australia's inflation rate hit a staggering 5.3%, a far cry from the average of 2 to 3% just a couple of years ago. This statistic isn't just a figure on a financial report; it represents a palpable force squeezing the wallets and well-being of Australians, heralding a period of unprecedented financial strain. 

Inflation, fundamentally, is the rate at which the general level of prices for goods and services is rising, subsequently eroding purchasing power. For many Australians, this means that the pay cheque which once covered a month's expenses now falls short, forcing difficult decisions between essentials such as food, housing, and healthcare. 

Beyond the immediate economic implications, this relentless increase in the cost of living has a darker, less discussed counterpart: its profound impact on mental health. Financial pressures are not new, but the current climate of inflation is amplifying these stresses, leading to an uptick in mental health issues such as anxiety, depression, and panic attacks among the population.

This article sets out to explore the link between inflation and mental health, shedding light on how the economic downturn is translating into psychological turmoil for Australians. Through a lens of empathy and understanding, we aim to unravel the psychological fallout of living pay cheque to pay cheque in an inflating economy, offering insights into the collective struggle faced by many and highlighting avenues for support and resilience amidst financial adversity.

How does inflation and financial stress impact Australians’ mental health?

You've probably heard that worrying about money can really mess with your head. But did you know it also messes with your body? 

Research shows that when we're stressed about our finances, it can lead to all sorts of mental health issues like anxiety, feeling down, and sometimes even panic attacks.

Here's why: When we're constantly worried about making ends meet, our bodies go into overdrive, pumping out stress hormones like cortisol. This sets off a chain reaction that can leave us feeling on edge and struggling to cope. So, when it comes to our mental well-being, financial stress is a big deal.

How Financial Stress Takes a Toll on Your Mind

When money worries weigh you down, it's not just about the numbers in your bank account. It's a constant feeling of uncertainty about the future that keeps you on edge.That’s because our brains equate money problems to our survival. No money means no food and shelter. 

This state of hyper-alertness messes with your daily life, making it hard to focus at work, straining your relationships, and just generally making everything feel harder. And it's not just about feeling stressed; it can also lead to feelings of shame, guilt, and not being good enough, which can make you feel even more alone in your struggles.

What Happens to Your Body When Money Stress Hits

On a physical level, financial stress triggers your body's "fight or flight" response, flooding your system with cortisol, aka the stress hormone. While this response is great for dealing with immediate danger, having it switched on all the time can mess with your health big time. Aside from triggering mental health issues like anxiety and depression, it can also increase your risk for heart problems, insomnia, and even putting on extra weight.

And speaking of sleep, financial stress can really mess with your ZZZs. The constant worry keeps your brain buzzing, making it hard to drift off or stay asleep. This makes your mental health struggles worse. It's a double whammy for your well-being.

How Money Stress and Mental Health Feed into Each Other

Money worries and mental health struggles often go hand in hand. Creating a cycle that's hard to break. When you're stressed about money, it can take a toll on your mental well-being. And when you're struggling with mental health issues, it can make earning, increasing your income, and managing your finances even tougher.

It’s a tough cycle. Really. 

Mental health problems might make it harder to hold down a job or make smart financial choices. And the stress of financial uncertainty can strain relationships, leaving you feeling alone in your struggles.

To truly help people facing financial stress, we need to take a holistic approach. That means not just offering financial advice, but also supporting mental health. By understanding how deeply connected money stress and mental health are, we can offer better support to break the cycle and help people find stability and well-being, even when times are tough.

How Rising Costs Impact Mental Health Care

As living expenses in Australia keep going up, there's less money left over for things like health care. Especially mental health support. It's a tough spot: just when more people need help for their mental health, it's getting harder to afford it.

This puts a huge strain on individuals and families who know they need help but can't afford it. With the prices of everyday things going up, there's less cash to spare for things like therapy or medication. So, many people end up putting off or skipping mental health care altogether.

But here's the problem: when you can't get the help you need, things can get worse. Conditions that could have been managed with the right support might spiral out of control without it.

And it's not just individuals who are affected. Community services and public health programs also feel the squeeze. With more people needing help but less money to go around, resources get stretched thin. This can mean longer waits for services, fewer programs available, and some people falling through the cracks.

The ripple effects of limited access to mental health care are big. It can hurt productivity, lead to more people missing work, and strain public health resources.

That’s why we need smart solutions like telehealth which make mental health care affordable and easy to access for everyone, no matter how tight their budget is. Because everyone deserves the support they need to feel their best.

How can you take care of your mental health during tough financial times? 

In the face of rising inflation and its consequent mental health strain, finding effective coping mechanisms and accessing available resources become crucial. The psychological toll of financial stress can be harsh, yet there are strategies that you and your loved ones can employ to navigate these challenging times with resilience and hope.

Managing Financial Stress

The key to tackling financial stress is smart money management. Start by making a budget to see where your money is going. Focus on the essentials like rent, utilities, and groceries. This gives you some peace of mind that your basic needs are covered. Giving your brain the assurance that you won’t starve. Then, look for areas where you can cut back. You might need to trim discretionary spending or negotiate better deals with your creditors.

Getting advice from a financial expert can make a big difference too. They can help you come up with a plan to deal with debt, save money, and make smart investments. And there are often free or low-cost services available if money is tight.

Getting Help for Your Mental Health

When money worries start to take a toll on your mental health, it's important to reach out for support. Public health services and helplines can connect you with professionals who can help, often at reduced rates or for free. And with options like teletherapy, you can get support from the comfort of your own home without breaking the bank.

Don't forget about the power of community too. Joining a support group or talking to friends and family can provide comfort and practical advice for coping with both financial and mental health challenges.

Taking Care of Yourself

In tough times, self-care is more important than ever. Simple things like meditation, exercise, and eating well can make a big difference in how you feel. The beauty about these routines is that you can do them without adding to your existing expenses. 

Also, don't underestimate the power of staying connected with others. Even a quick chat with a friend can lift your spirits and remind you that you're not alone in this.

By practising self-care, you’re putting yourself in a better position to climb out of your financial struggles. 

Learning Resources

Knowledge is power when it comes to managing both your money and your mental health. Luckily, there are tons of resources out there to help you get started.

For financial know-how, check out online guides, workshops, and books. There is a lot of free information and advice online. They cover everything from budgeting and saving to investing and dealing with financial stress.

And when it comes to mental health, it's just as important to educate yourself. Look for resources that explain the basics of mental health, how to spot signs of stress and anxiety, and strategies for coping. Our blog strives to provide you with resources that help you understand your mental health and cope better. 

By arming yourself with knowledge, you'll be better equipped to handle whatever life throws your way.

Takeaway

Navigating the financial challenges created by rising prices in Australia (and the world) is not easy. There are a lot of factors and nuances that influence this journey. However, it’s important to remember that you are not alone. Together, we can navigate tough times with resilience and solidarity. 

Our team at MeHelp is here to help you navigate your challenges mentally and emotionally. We can provide you with the resources you need to keep your mental health strong while you work on getting your finances in order.