Navigating Economic Anxiety

There's no denying that the financial landscape is challenging and stressful for many right now—something which is exacerbated by media coverage, economic fluctuations, and uncertainty surrounding economic policies. Mortgage rates are up, rental prices have increased drastically, and many are feeling the pinch. Also with supermarket inflation hitting hard it's no surprise that people are feeling anxious. So, how do you navigate the economic anxiety and remain calm amongst the challenge?

Step One: Understanding Economic Anxiety

Economic anxiety can be defined as the apprehension, fear, or stress individuals experience regarding their financial well-being and the stability of the broader economic environment. It manifests differently for each person, ranging from worries about meeting basic needs to concerns about job prospects and retirement savings.

Step Two: Discover What’s Causing Your Anxiety

“Well, the cost of living, of course, Sonya!” I know - but that’s too generalised a statement. Our economic landscape isn’t changing for a while, so be really honest with yourself and ask what it is specifically. Is it that your outgoings are more than your incomings? Is it that you don’t have an emergency fund and you feel anxious as a result? Is it that you’re on a temporary contract at work and it makes you feel on edge? By being honest with yourself, you can find the root cause and help rectify that to alleviate the symptoms.

Step Three: Create Space For Yourself

“Keep calm and carry on!” It’s a phrase we’ve all heard, created by Britain’s wartime propaganda department, the Ministry of Information. But whilst the wording may have been catchy, it’s not actually beneficial to your health to gloss over problems. Heightened levels of stress and uncertainty can negatively impact mental health, leading to increased rates of depression, anxiety disorders, and sleep disturbances—and that’s not to mention the impact on relationships. So be sure to create space to process the emotions that go with navigating these challenging times.

Step Four: Enhance Your Financial Understanding

Get to know your finances on a personal level. Know what your bare-bones budget is, where you have disposable income to play around with, and what upcoming events you need reserves for. Having this information can empower you to make informed decisions, budget effectively, and build a more secure financial future.

Step Five: Cultivate A Supportive Network

It can be easy for socialising to be one of the first things that are cut back during times of economic stress, but having a strong social support system can be invaluable. Make time to connect with friends, family, or even support groups so you have people to turn to for emotional support, guidance, and most importantly—fun!