The financial inflation we’re experiencing right now affects all kinds of essential things. It can make it incredibly stressful to pay for basics, such as healthcare, housing, food, and gas. Mental health is one thing that is greatly impacted by inflation but often gets forgotten about.
The American Psychiatric Association (APA) Healthy Minds Monthly Poll revealed that almost 90% of people in the US feel anxious about inflation. The same poll also showed that 50% of people in the US are concerned about potentially losing some or all of their income.
Inflation can affect mental health in the following ways:
- Experiencing financial stress when you’re unable to pay bills or manage your spending to stay afloat.
- Finding it difficult to make the best decisions about your spending and budgets.
- Going through job-related stress, as inflation can lead to job insecurity and working extra hours to pay bills.
It’s important you understand how inflation can affect your mental health. When you’re aware of the facts, you can take steps to manage your mental well-being.
How inflation affects mental health
Any economic change can be difficult, especially when it comes to inflation. When prices go up, mental health often suffers as people struggle to afford the basic things they need to live.
Inflation takes away people’s sense of security. Instead of being certain that you can afford the rent next month, inflation brings about uncertainty, as you’re not sure how things are going to be next month. Even if you don’t have any money problems right now, it may not be that way in the future.
The FinMasters Impact of Inflation on Mental Health report revealed that:
- 67% of people are most stressed about paying bills
- 86% are worried they won’t be able to afford food
- 24% are concerned they won’t be able to afford fuel for their car.
- 76% are worried about housing costs
Inflation can affect different people in different ways. If someone is struggling to pay for the basics, they’re less likely to have enough energy to make healthy lifestyle choices and access preventative medicine. This is just one example of how inflation can have a domino effect and impact other parts of your life.
Someone who lives paycheck to paycheck can be put under a tremendous amount of pressure as a result of inflation since their income is unlikely to keep up with increasing costs. Mental health can also be affected when people are concerned about their money in the future and how secure their current job is.
What you can do
If inflation is having a negative effect on your mental health, speaking to a therapist may help. A therapist can provide you with the support you need and help you put together strategies to manage your mental health during this challenging time.
Creating a budget is something else you should consider doing to help you stay afloat. Having a clear understanding of your incomings and outgoings can help you better manage your finances. Budgeting can also allow you to save some money that you can use in case of an emergency or if you have an unexpected expense.
While the news can seem all doom and gloom at this time, staying informed about inflation and the economy can help you stay one step ahead and have an idea of how you’ll be affected. Understanding how things like taxes, wages, and the possibility of unemployment will affect your mental health can empower you to take proactive steps.
It’s important to maintain a healthy lifestyle during difficult times. Practicing good habits, such as staying connected with friends and family, getting enough sleep, and doing things you enjoy, is essential for your mental well-being.
You may want to think about setting some realistic financial goals and putting together a plan to achieve them. This can help you feel more in control and give you the confidence you need to successfully manage your finances.
Take action today
Financial inflation can bring about complicated mental health issues. But it’s important to realize you’re not alone. Many people are going through similar situations and there are steps you can take to look after your mental health.
Make an appointment to speak to a therapist, create a budget plan you can stick to, and stay as informed as you can about what’s going on in the local economy. These three simple tasks will help you get through this difficult period.
