Inflation makes it more difficult to afford staples, but it also has deeper, more indirect effects that we may not always acknowledge. For example, inflation can cause family strain if you have to cut back on extras, job stress if you need to work more hours, and downstream health effects if the stress becomes chronic.
How can we best understand and manage the psychological and physical effects of inflation-related stress? Can we do anything in addition to adjusting our budgets and hunkering down? Are there ways to be more active and proactive in looking after ourselves? We address these questions here.
Understanding Financial Stress
Our feelings of stress often originate in the belief that we’ve lost (or never had) control over important aspects of our lives. On its most basic level, control means being able to bring about positive outcomes for yourself and your family; a lack of control means that you don’t think your actions have any effect on what happens to you.
People will usually try to regain control if they lose it, but inflationary pressures are not something you can easily control. Over time, this loss of control and the inability to regain it can have serious impacts.
The Effects of Financial Stress on Mental Health
Some of the common psychological effects of financial stress are:
- Anxiety: People under financial stress may experience worry and fear about money-related issues. Because money concerns affect so many areas of our lives, this anxiety can easily spread to other domains, such as work and family life.
- Depression: Financial stress can lead to feelings of sadness, hopelessness, and despair. Struggling with financial insecurity can also make it difficult to enjoy life and maintain healthy relationships, meaning that the things that normally buffer you from the effects of stress are also harder to access.
- Shame and guilt: People under financial stress may feel ashamed about their situation and even guilty if they believe they aren’t doing enough to improve it.
- Relationship problems: If there are disagreements about money, or one partner is bearing the brunt of the financial burden in the relationship, the relationship can be put to the test.
- Ineffective decision-making: Financial stress can harm a person’s ability to make good decisions. They may make impulsive decisions, such as taking on more debt, making risky investments, or engaging in recreational gambling.
- Low self-esteem: If people feel as though they are failing or not living up to societal expectations, it can damage their self-esteem.
Stress, in general, can have serious effects on physical health, resulting in headaches, muscle tension and pain, digestive issues, insomnia, high blood pressure, a weakened immune system, weight changes, and a decreased sex drive.
It’s important to note that many of these effects are cumulative, meaning they become more impactful over time. For example, stress itself can be motivating in the short term, but over time the effects of chronic stress will overwhelm any power it has to spur people into action. The effects also interact; shame and guilt, for example, can cause someone to withdraw socially, harming their relationships and making it more challenging to find the social support they need to buffer the stress.
What You Can Do About Inflation-Related Stress
Key to dealing with any kind of stress is regaining a sense of control. That’s easier said than done when you feel as though your world is falling apart. However, even small changes can give you a sense that you’re on the right path. Here’s how you can get started:
- Consider the things you can control, even if it doesn’t help with the impacts of inflation. Can you improve your diet to include more healthy options? Can you go for short walks around your neighbourhood? Are there any free events in your city that would get you out of the house and give you opportunities to interact with other people?
- Prioritize the things that will benefit your physical health: sleep, moderate exercise, avoiding unhealthy foods, and cutting down on alcohol and tobacco use. It’s easy to slack off on these good habits when you’re under a lot of stress, but sticking to them will shore up your strength and your immune system, making it easier for you to manage your psychological challenges.
- Stay on top of your finances and review your budget. When you’re anxious about money, it’s paradoxically easy to ignore your bills and put things on credit without ever checking your balance. But taking a closer look at your income and expenses can uncover opportunities for saving, such as subscriptions you’re not using or unused purchases that you can still return.
- Check your benefits. You may have benefits you’re not taking advantage of, such as flex funds for non-medical services such as massage and job counselling. Use these benefits and any other resources you can find within your company or your community. You might be surprised by what you can find at little or no cost.
- Seek out social support. It’s tempting to hide under the covers when you’re anxious or fearful, but it won’t solve your problems over the long term. The people who care about you will be happy to listen, which will help with any feelings of shame you may have. They may also be able to offer you support by getting you out for walks or helping you find resources that could make things easier for you.
- Talk to your doctor or a therapist. Your family doctor can help with the physical effects of stress and will work to rule out any other possible causes for your symptoms. They may recommend medications or other treatments to lessen the effects of stress on your body. They can also refer you to various types of mental health supports. Therapists can help in a wide range of ways, depending on their areas of expertise. They may work with you on your emotional state, but they can also recommend concrete actions for you to take, connect you with support groups, teach you relaxation techniques, and more.
Inflation and Your Mental Health
Inflation-related stress is real, and it has real psychological and physical effects. There are several things you can do to mitigate the stress, such as engaging in proper self-care, reviewing your budget, and talking to your doctor or a mental health care professional.
If you’re struggling, KW Counselling is here to help. Our compassionate, experienced therapists will give you a non-judgmental space where you can explore your thoughts and feelings and develop coping skills to help you through this period in your life and beyond.
We tailor our approach to your specific circumstances and therapeutic goals, using techniques grounded in modalities as wide-ranging as cognitive behavioural therapy, dialectic behavioural therapy, hypnotherapy and family therapy. Whether you are experiencing financial stress, feeling overwhelmed by life, or suffering from a specific condition such as depression, PTSD, or another mental health issue, we are here to support you.
Ready to take the first steps toward addressing your stress? Schedule a consultation with one of our therapists today. We’d love to meet you.