Surviving the Cost of Living Crisis

Economic pressures are escalating, and the rising cost of living is taking a significant toll on Australians’ mental health. From increased housing expenses to soaring prices of everyday necessities, these financial burdens are affecting the mental wellbeing of many. This blog aims to explore a critical issue, providing insights to raise awareness and guide those in need of helpful resources.

The economic pressures from rising living costs are having a tangible impact on mental health across Australia. According to Mental Health Australia’s 2023 Report to the Nation, over half of Australians report that the increasing cost of living is significantly affecting their mental health. Furthermore, one in five individuals have found that financial constraints have become a barrier to accessing mental health support over the past year.

Economic stress often manifests through a variety of symptoms and behaviours, including anxiety, depression, sleep disorders, substance abuse, and strained relationships. Constant worry about financial stability can lead to severe anxiety and depressive episodes. Financial stress can cause insomnia or disrupted sleep patterns, exacerbating mental health issues. Some individuals may turn to alcohol or drugs as a coping mechanism, which can further deteriorate mental health. Additionally, financial problems can strain relationships, leading to conflict and reduced social support.

Community and support networks play a crucial role in mitigating the impact of rising costs on mental health. Local organisations, community groups, and non-profits can provide invaluable support, resources, and a sense of belonging during tough times. For example, community centres often offer free or low-cost mental health services, financial counselling, and support groups. These resources can help individuals manage financial challenges while maintaining their mental wellbeing.

Non-profit organisations such as Beyond Blue and Lifeline Australia provide crucial mental health support services. Beyond Blue offers a range of resources, including online forums, self-help tools, and counselling services, to help individuals manage financial stress and mental health issues. Lifeline Australia provides 24/7 crisis support and suicide prevention services, offering a lifeline to those in desperate need.

Communities and organisations across Australia are developing innovative solutions to address the mental health impact of economic stress. Local support groups, online forums, and community workshops offer safe spaces for individuals to share their experiences and access mental health resources. Collaborative initiatives between non-profits and businesses are also emerging, providing mental health support and financial education to those in need.

One notable initiative is the partnership between financial institutions and mental health organisations to offer integrated support services. For instance, some banks have introduced financial hardship programs that include access to financial advisors and mental health professionals. These programs aim to provide comprehensive support to individuals struggling with financial and mental health issues.

While systemic support is crucial, individuals can also take proactive steps to manage financial stress and protect their mental health. Creating a detailed budget and sticking to it can help manage expenses and reduce financial uncertainty. Numerous online tools and apps can assist in tracking spending and planning finances. Consulting with financial advisors can provide valuable insights and strategies for managing debt and investments. Financial counselling services are available through various community organisations.

Practices such as mindfulness, meditation, and regular physical activity can help reduce stress and improve overall mental wellbeing. The Black Dog Institute offers free mindfulness and meditation resources that can be accessed online. Engaging in regular physical activity, even something as simple as daily walks, can significantly improve mental health by reducing stress and releasing endorphins.

The barrier of high costs in accessing mental health care is a significant issue. Digital mental health services have become increasingly popular, offering more affordable and accessible options for those in need. Services like online counselling, mental health apps, and telehealth consultations can provide essential support without the high costs associated with traditional in-person therapy.

Online platforms such as Head to Health and ReachOut provide comprehensive mental health resources, including self-help tools, professional support services, and peer support networks. These platforms aim to make mental health care more accessible to all Australians, regardless of their financial situation.

Here are some practical tips to help cope with financial stress:

1. Budgeting: Start by creating a detailed budget that includes all your income and expenses. Track your spending to identify areas where you can cut back.
2. Financial Counselling: Seek advice from a financial counsellor who can help you manage debt, create a budget, and provide strategies for financial stability.
3. Mindfulness and Relaxation: Incorporate mindfulness practices and relaxation techniques into your daily routine to help manage stress. Techniques such as deep breathing, meditation, and yoga can be very effective
4. Physical Activity: Regular exercise can help reduce stress and improve your overall mental wellbeing. Aim for at least 30 minutes of moderate physical activity most days of the week
5. Healthy Eating: Maintaining a healthy diet can have a positive impact on your mood and energy levels. Avoid excessive caffeine and sugar, and include plenty of fruits, vegetables, and whole grains in your diet
6. Sleep Hygiene: Ensure you get enough sleep each night by establishing a regular sleep schedule and creating a relaxing bedtime routine. Avoid screens before bed and create a comfortable sleep environment
7. Social Connections: Stay connected with friends and family who can provide emotional support. Don’t be afraid to reach out and talk about your financial stress and its impact on your mental health.
8. Professional Help: If financial stress is affecting your mental health, consider seeking help from a mental health professional. Therapy and counselling can provide valuable tools and strategies for coping with stress and improving your mental health.

Technology plays an increasingly important role in providing mental health support, especially for those facing financial constraints. Digital mental health platforms, apps, and telehealth services offer accessible and affordable options for individuals seeking help. These technologies can bridge the gap in mental health care, making it easier for people to access support without the need for expensive in-person visits.

Apps like Smiling Mind and Calm offer guided meditation and mindfulness exercises that can help individuals manage stress and improve their mental wellbeing. Telehealth services, such as those provided by Positive Mind Works, offer online and phone-based psychological assessments and treatment programs, making it easier for individuals to access mental health care from the comfort of their homes.

Community initiatives and peer support networks provide essential resources for individuals struggling with financial stress and mental health issues. Local support groups and online forums offer safe spaces for people to share their experiences, seek advice, and connect with others facing similar challenges. These networks can provide emotional support, practical advice, and a sense of community, helping individuals feel less isolated during tough times.

Peer support programs, such as those offered by SANE Australia, provide opportunities for individuals with lived experience of mental health issues to support others going through similar challenges. These programs can be incredibly effective in reducing feelings of isolation and providing valuable insights and coping strategies.

Improving financial education and literacy can empower individuals to better manage their finances and reduce financial stress. Community organisations, non-profits, and financial institutions can offer workshops, seminars, and resources to help individuals develop essential financial skills. Topics such as budgeting, saving, managing debt, and investing can provide individuals with the knowledge and confidence to navigate their financial challenges.

Programs like MoneySmart, developed by the Australian Securities and Investments Commission (ASIC), offer free online resources and tools to help individuals make informed financial decisions. By improving financial literacy, individuals can gain greater control over their finances and reduce the mental health impact of economic stress.

Conclusion

The rising cost of living is a pressing issue that significantly impacts mental health. By understanding the connection between economic pressures and mental wellbeing, individuals, community organisations, and non-profits can work together to provide effective support and resources. Proactive strategies and accessible mental health care can help Australians navigate these challenging times, ensuring better mental health outcomes for all.