How to protect your mental health during money stress

Soaring petrol prices, looming interest rate hikes and the largest health insurance premium increase since 2017 are intensifying financial stress for Australians, with research showing the pressure is taking a significant toll on mental wellbeing.

Almost 85% of Gen Z and Millennials say money worries have affected their wellbeing, according to P&N Group's More than Money research, conducted by Painted Dog Research, while almost half say financial stress has directly impacted their mental health.

The survey paints a stark picture of how cost-of-living pressures are reshaping everyday life. Two in five respondents said they had cut back on essentials, while three in 10 reported that financial stress was affecting their sleep and confidence.

Many said they had delayed medical appointments, skipped social activities or stopped saving altogether.

Financial therapist Jane Monica-Jones says the findings reinforce how closely financial pressure and mental health are linked.

"There is a huge connection between money and mental health," she says.

Here, she shares five tips to help maintain financial wellbeing and mental health during turbulent times.

1. Appreciate that your finances and mental health are interlinked

First of all, Monica-Jones says that that relationship between financial wellbeing and mental health is crucial to acknowledge because of how a strong it is.

"There is a huge link between the two. Money and our finances are one of the most stressful aspects of our life, because they hit on our basic needs.

"Money is a device to get our food, our shelter and our clothing. And if that feels under threat - whether that threat is real or not - it can make us feel vulnerable and it's going to impact our mental health."

2. Don't hesitate to switch off and log out

While staying informed can be useful, doomscrolling through news stories about the latest share market movements or checking in on a bank balance too often may not only prove detrimental, it can also become compulsive.

"Doing things like doomscrolling or engaging in distressing news articles can actually have an impact on our resilience, our sense of wellbeing and our mental health," Monica-Jones says.

"When we're stressed, we often seek out those things that continue to stress us - we're compelled to seek out the source of our distress. We think that if we can work it out, we can overcome it. But often, that keeps us sucked in and it doesn't necessarily support us."

Monica-Jones suggests tackling these types of behaviours with the same strategies that can be used for any type of stress, such as exercise, meditation, getting outdoors or connecting with other people.

"What might feel supportive is getting more rest, some exercise, some meditation - anything that makes us feel more resilient.

"If we can support our physical and mental health first, we feel more resilient, then we are more able to come up with creative ideas and potential solutions."

3. Beware social comparison

Beyond limiting behaviours like excessive news consumption or account checking, Monica-Jones says that it's worth being mindful about the negative impacts of comparison.

"The role of social comparison is really important here. Social media exacerbates it, but advertising companies are also really great at bombarding us and prompting ideas like 'Why can't I afford that expensive car?' or 'Why am I not having those expensive holidays?'"

Instead of becoming lost in comparison, Monica-Jones suggests homing in on what success looks outside of the financial sphere.

"It could be that contribution that we make to our family and to our kids, or our friends, or our parents, or our community.

"It's also about focusing on our personal values. What do I actually find is valuable to me? Is it exclusively to do with the trappings of financial wealth, or are there other values that I could maybe place some deeper focus on?'"

4. Keep things in perspective

In the midst of periods of greater uncertainty, it can be difficult to imagine a time when things improve. This is where finding perspective can prove helpful, Monica-Jones notes.

"If we're thinking about perspective, we can look at the idea that there is growth and there is contraction. That there is always winter and that there is always spring."

Of course, that doesn't mean that people should stop being proactive about managing their bills or sticking to their budget in the short-term, nor does it mean that the larger issues in the financial world will immediately go away.

Monica-Jones also suggests looking for perspective at an individual level - especially for those who are experiencing financial setbacks.

"Getting perspective, or thinking a little bit wider about our life as a whole, gives us that sense of resilience because we're actually seeing the bigger picture.

"That could be a bigger picture which shows that we're more resilient or capable than we thought we were, because there's plenty of evidence of the hurdles that we've overcome in the past."

5. If you're struggling, get help

Perhaps the most crucial point of all for those who are in a precarious financial situation or struggling with their mental health is that there are people out there who can help.

"The important thing to know if you're truly struggling, if you've got debt issues, or even if you have small business issues, that you can go and see a financial counsellor. That's part of a free service that's offered to all Australians," Monica-Jones says.

A financial counsellor will be able assess the situation and help with managing debt, developing a budget, negotiating with government agencies or creditors, and accessing any grants, concessions or legal support (if required it) that some may be eligible for.

"There's also other types of professional help. That could be someone like a financial therapist who deals with your challenges with money, but it can also be a financial advisor or a therapist," says Monica-Jones.

Some of the organisations recommended by ASIC's MoneySmart include those listed below, but ASIC also has a financial counsellor near you tool to connect people with counsellors in their area.

• The National Debt Helpline (1800 007 007)
• The Mob Strong Debt Helpline (1800 808 488)
• The Small Business Support Line (1800 413 828)

Alternatively, for those looking to talk to someone about their mental health there are plenty of options listed by Health Direct, including the following:

• Beyond Blue (1300 22 4636)
• Lifeline (13 11 14)
• The Kids Helpline (1800 55 1800)

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