Navigate Rising Costs: 11 Effective Ways to Cope with Inflation Anxiety

In these uncertain times, many people are experiencing a rising wave of inflation anxiety. With prices of everyday goods and services skyrocketing, it’s no wonder that people are concerned about how this will impact their mental health and their finances. The better you understand the signs of inflation anxiety, the more prepared you will be in taking the necessary steps to protect your peace of mind and your wallet.

Is it possible to prioritize your mental health when experiencing economic challenges? In this blog, we will delve deeper into the concept of inflation anxiety, how it can affect your mental health, and provide practical tips on how to safeguard mental health in uncertain times (and your wallet too!).

What is Inflation Anxiety?

Inflation anxiety refers to the fear we experience when we anticipate or witness a significant rise in the cost of living due to rising prices. This complex emotional state happens when people experience economic insecurity and loss of control, especially in hard times. It stems from the concern that your hard-earned money will be worth less in the future, making it harder for you to meet financial goals and maintain your current standard of living for you and your family.

The impact of inflation on Mental Health

Soaring prices, don’t just affect our wallets, but can negatively affect our mental health. As the cost of living outpaces our income, anxiety tightens its grip, and we panic when our dreams feel distant to achieve.

If you are feeling anxious about your financial future, you are not alone. A Bankrate survey shows that over 50% of adults have financial stress that negatively affected their mental health. The rise in prices for basic goods and services like grocery, gas and energy bill can be a significant source of stress. With shrinking savings accounts, rental hikes and rising credit card debts, many people have a high amount of anxiety for the future.

The long-term effects of stress and anxiety can lead to hopelessness, difficulty concentrating and depression. Unfortunately, this can cause an emotional toll and have a negative impact on your physical health. However, I would encourage anyone who feels this way to consider calling your doctor or using telehealth services to speak with a licensed mental health professional.

Signs of inflation anxiety

Inflation anxiety can manifest in various ways. Some individuals may become more cautious with their spending, cutting back on non-essential purchases and focusing on saving or checking their savings account excessively. Others may feel overwhelmed or stressed about the rising cost of living, constantly worrying about how they will be able to afford basic necessities.

Another sign of inflation anxiety is when individuals start to hoard or stockpile goods in anticipation of a possible recession. This behavior can further contribute to excessive worry, a feeling that things will get worse and hopelessness. It is crucial to assess the root of your emotions by asking yourself, ” What can this emotion tell me about what needs attention in my life right now?”

Understanding How Inflation Anxiety Affects Yor Mental Health

Inflation anxiety is rooted in our need for financial security and stability in stressful times. When faced with the uncertainty of rising prices, our brains perceive it as a threat to our well-being and survival. This triggers the amygdala into overdrive. The amygdala is the part of our brain responsible for that processes fear and anxiety.

The fear of financial instability can lead to anxiety and trigger underlying mental health concerns, like compulsive disorders. Our aversion to loss makes us prioritize keep series of cognitive biases, such as loss aversion and confirmation bias. If we get information that confirms our existing beliefs- in this case inflation-our brains can make irrational decisions in our ability to prevent future loss.

Strategies to Protect your Finances Even if You Struggle with Inflation Anxiety

Unfortunately, anxiety can sap our energy to do much apart from worrying about rising interest rates, utility bills or credit debts. It is easy to consume ourselves with our financial situation in stressful times, but there is hope. To improve your mental health and your finances, you must find the strength to believe that your situation can get better. Even small bursts of positive emotion like hope and joy, can be the boost you need to for some clarity.

A Mayo Clinic report shows that chronic anxiety can have many negative impacts on overall health. Fatigue, insomnia, headaches, and even elevated blood pressure can start to appear as a result from chronic anxiety. Furthermore, anxious thinking can cause you to make irritational decisions.

By taking proactive steps, we can minimize the erosion of our purchasing power and ensure a more stable financial future.

3 Actionable Steps to Control Your Finances that can ease Inflation Anxiety

Adjust Your Budget and Spending Habits

In times of inflation, it’s important to review your budget and adapt to a “flexible budget.” Let’s face it, you shouldn’t feel guilty having your favorite cup of coffee now and then. Ditch the rigid approach to budgeting and embrace a flexible budget.

Having a flexible budget means allocating funds to fixed cost such as housing expenses, while being flexible with discretionary spending in changing circumstances. So, if you want to have two cups of coffee from your favorite neighborhood cafe, go ahead! Just remember you will have to tighten up your wallet with other discretionary spending, while contributing to your emergency savings. This will give you some sense of control and decrease feelings of stress.

I never knew I was spending 50 bucks a month on subscriptions that I didn’t need! Visualizing your spending is just one of the important benefits of using an affordable budget app.

Use Technology to Your Advantage

Ready to break the cycle of impulsive spending? These apps and trackers are your allies! They will help you create a monthly budget, set up automatic transfers, identify your spending triggers and pinpoint areas for improvement. Assessing how much you spend is a form of mindfulness that can ultimately lead to economic security. Be sure to look for ways to reduce costs such as negotiating bills, finding cheaper alternatives and eliminating unnecessary subscriptions.

Create Low Effort, High-Earning Side Hustles

Are you tired of hearing that you should diversify your portfolio? The problem with that advice is that it assumes that you have more than enough left over at the end of the month, but what if you don’t? We have a fix for that!

Items that you have not used for more than a year, can be turned into profit. Clothes, toys, furniture- you name it. Make an inventory of all items that you haven’t used in a year that it “sellable or rentable.” List them for sale on platforms like Poshmark, Ebay, Tred up, Apt Deco and watch your savings account increase. The level of comfort this extra income will bring is invaluable to reducing inflation anxiety, and the perk is- you’ll have a clean space!

You can even boost your existing emergency savings with these hassle-free side hustle income streams.

Seek Support and Resources to Reduce Inflation Anxiety

Navigating inflation anxiety and financial stress at the same time can be overwhelming. One of our greatest strengths is to ask for help when we need it. Rather than isolating or feeling ashamed, it is crucial to reach out to qualified professionals like a financial advisor or a clinical psychologist who can help you, in person or online.

Also, social media can be a great way to connect with your relatives, friends and give you access to a community of people who are experiencing what you are experiencing. This can create a feeling of connectedness and social support for you.

Coping with stressful matters like financial insecurity can be a useful strategy in stress reduction. Sometimes it is the small things that can create big results in our lives, like hearing the voice of a loved one, being a part of a supportive environment or engaging in mindful activities like watching movies with a friend. All these activities can divert our thinking from financial stress and help us to create a sense of calm in our lives, when we feel most vulnerable.

5 Ways to Get the Most Affordable Mental Health Care

1. Check with your insurance company. Many insurance plans cover mental health services at least partially. You can contact your insurance company to see what your plan covers and what your out-of-pocket costs would be. Some employers also offer employee assistance programs (EAPs). EAPs are confidential programs that provide employees with support for personal and work-related problems. These programs may offer counseling, referrals to mental health professionals, and other resources.
2. Look for sliding scale fees. Many mental health professionals offer sliding scale fees. This means that they charge based on your income and ability to pay. You can find mental health professionals who offer sliding scale fees by searching online or contacting your local mental health association.
3. Consider group therapy. Group therapy can be a more affordable option than individual therapy, and it can also be a great way to connect with other people who are facing similar challenges.
4. Take advantage of community resources. Many communities offer free or low-cost mental health services through clinics, hospitals, and other organizations, like federal health centers (FHC). You can find mental health resources in your community by searching online or contacting your local mental health association. You can locate the closest FHC here.
5. Use teletherapy. Teletherapy, also known as online therapy, is a convenient and affordable way to access mental health services. Many teletherapy providers offer sliding scale fees and accept insurance.

Celebrate Your Victories and Small Wins in the Face of Inflation

By achieving your monthly budgeting goals and avoiding overspending on expensive necessities, like clothes, you will develop a sense of pride in your ability to manage your finances. This newfound financial discipline will be one of your greatest personal strengths and accomplishment.

Congratulations on discovering an effective way to take control of your finances and achieve your financial goals!

Take the time to engage in mindful activities like listening to music, being in nature and prioritizing a sense of calm. Worrying about money loss, making large unplanned purchases like buying a new car, will only hinder your progress.

Try to be your own mental health advocate and focus on things that are in your control. The next time you make a large purchase, you would have created a budget and saved for it, and of course celebrate reaching your goal.

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Conclusion

One effective strategy for coping with inflation anxiety is to understand the relationship between financial stress and mental health. When prices of basic necessities like housing, food and healthcare increase, you can feel a heightened sense of stress.

It is important to focus on factors that you can control and find the resources you need to help you during hard times. This can be contacting a professional who can give you insights and strategies to manage your money and help with mental health concerns.

During this time, don’t isolate yourself. It is equally important to form social connections and prioritize nurturing the relationships you have. According to the American Psychiatric Association, socialization, personal touch and a supportive environment have positive outcomes on mental health. In addition, activities such as journaling, being in nature and watching a film can be a helpful way to relieve stress and anxieties.

When you have achieved your goals, remember to celebrate the small and big wins. It takes hard work to overcome anxiety that is triggered by inflation and economic concerns.

Know that you are not alone and there are many resources to help you with mental health concerns. Talking to a professional in person or online may help you overcome stress triggers and create new coping strategies.

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Medical Disclaimer: The content of the post is intended for informational and educational purposes only. It is not intended to diagnose or treat. Individuals should consult with a licensed health professional regarding their health concerns.