The current economic situation in Australia is not only affecting people’s financial well-being but also taking a toll on their mental health. Factors like housing affordability, rising living costs, and limited job opportunities are causing financial stress, leading to various negative consequences for individuals and their families.
A recent report from the Australian Bureau of Statistics (ABS) reveals that the cost of living has surged by a significant 23.4% over the past year, adding to the financial burden on many households.
When faced with financial hardships, we can often resort to working extra hours or taking on additional jobs to make ends meet. While this can provide a temporary financial boost, it can result in increased stress, overwork, and limited quality time with family members. It can also place added pressure on the entire family unit.
According to a recent article by Life Sherpa, the connection between financial stress, and mental and physical health is undeniable. Financial stress can adversely impact your overall well-being, making it even more challenging to address the underlying financial issues. People might adopt unhealthy coping mechanisms, such as overeating, substance misuse, or isolating themselves from friends and family.
If this sounds like you or someone you know, there is still hope and a good start is by considering some of these practical solutions we have outlined below:
Trim Unnecessary Expenses and Manage High-Interest Debt.
Reducing non-essential spending is a crucial first step. Shopping for cost-effective alternatives and carefully assessing the necessity of each purchase can help regain financial control and reduce anxiety associated with spending.
Setting up direct debits for regular payments can help you plan ahead with your finances and reduce overspending or being caught off guard when bills come up.
Embrace Creativity.
Financial constraints don’t have to mean sacrificing all life’s pleasures. Explore creative ways to enjoy the things that matter without breaking the bank, like organizing clothing swaps, meal exchanges, or participating in community events and activities.
Consult a Financial Counsellor.
Its important to be knowledgeable about your finances, understand your biggest causes for stress and educate yourself financially. Seek guidance from a financial counsellor through resources like the National Debt Hotline (1800 007 007). They can advise on improving your financial situation, identifying potential government support, negotiating repayment plans with creditors, and exploring alternatives to bankruptcy or debt agreements.
Explore Financial Support Options.
Many avenues exist for financial support, including speaking with your bank, insurance company, utility providers, and landlords. Don’t hesitate to seek better deals and assistance when necessary.
Find Additional Income Sources.
If you have the capacity without it negatively impacting you or your loved ones, explore opportunities to supplement your income. Online courses to acquire new skills are great potential pathways to secure extra income.
In times of financial difficulty, remember that support is always available, and there are practical steps you can take to alleviate stress and regain control over your financial and mental health.
Addressing financial concerns is vital, but don’t neglect your emotional well-being in the meantime. Acknowledge your feelings, share your concerns with someone you trust, and consider seeking professional help if needed. In cases of severe distress, contact a medical professional or a mental health practitioner. You may be eligible to go on a mental health care plan which allows you to access
Accessing affordable mental health support.
· A Mental Health Care Plan allows you to claim a rebate of $136.35 for a session with a Clinical Psychologist or $92.90 for a Registered Psychologist. Keep in mind however, that Psychologists’ fees may vary based on their location and qualifications, but if you are unsure, you can always ask when you make your appointment. Remember: to find out if you are eligible for a mental health care plan, you will need to book an appointment with your GP before making an appointment with a psychologist.
· Black Dog Institute also offers an online clinic that you can access via the website which will ask you some questions and provide information on low-cost supports based on your responses.
· EAP (Employee Assistance Program) services are free and are often offered through workplaces where an employee (and sometimes their family members) can access free therapy sessions. This typically isn’t long term but can help during periods of immense stress.
· Find a bulk billing practice, which charges the full price back to Medicare. a quick Google search may bring up bulk billing psychologists and GP’s near you.