Inflation has a ripple effect that extends far beyond just economic hardship
The rising cost of living has had a profound impact on mental health, with people struggling to make ends meet and dealing with financial stress. Inflation has led to higher prices for food, housing, transportation, and other basic necessities. This can cause serious economic hardship and put an immense strain on individuals’ mental well-being.
Your mental health may be impacted when you experience:
Difficulty paying bills or managing your spending. Inflation can cause the purchasing power of your income to decrease, meaning that it takes more money to buy the same things as before. This can be both financially and psychologically stressful, especially for those living on fixed incomes or trying to make ends meet on limited resources.
Uncertainty: Inflation can lead to varying prices for goods and services, making it difficult to know how much you’ll have to pay for something. This lack of certainty can cause stress and anxiety.
Job Loss: If inflation causes businesses to reduce their costs by cutting jobs, people may find themselves out of work. This loss of income can be very difficult both financially and emotionally.
Stress: Inflation can lead to an overall feeling of stress as people fear for their economic future. This can then lead to further mental health issues such as depression, anxiety, and insomnia.
Economic hardship can lead to stress and fear.
One of the most significant effects of inflation on mental health is increased stress. When prices go up and wages don’t keep pace, people are forced to make difficult choices–working more hours or cutting back on healthy activities like exercise or spending time with friends and family. This can lead to fatigue, anxiety, depression, substance abuse, and other psychological disorders.
Inflation can also create feelings of insecurity and fear, as people are unsure whether their income will be enough to meet their needs. This can lead to isolation, avoidance behaviors, and a lack of trust in others. Additionally, it can increase financial pressures like debt or overdue payments that can make life even more difficult.
You are not alone.
According to Pew Research Center, 7 in 10 Americans view inflation as a major issue for the country (Pew, 2022). Furthermore: the American Psychological Association reports that:
83% of American adults say inflation is a source of stress for them
57% say that they worry about being able to pay their rent/mortgage
Black men were more likely than White men to report feeling so stressed that it affects their ability to function (42% vs. 28%), and members of the LGBTQIA+ community also were more likely than those who are not to report that most days their stress is completely overwhelming (50% vs. 33%).
Inflation has a ripple effect that extends far beyond just economic hardship. It can have serious consequences for mental health and well-being, leading to stress, anxiety, depression, and other psychological issues. Recognizing the potential impacts of inflation on mental health is an important step in developing strategies to address it.
What to do if your mental health is impacted by inflation?
Create a budget and a plan during periods of economic uncertainty. Start by setting a budget and tracking your spending. This can help you identify areas where you can save money, as well as give you a better understanding of your financial situation. Building an emergency fund is also important. Try to set aside some money each month in case something unexpected comes up or if inflation causes prices to rise further.
Evaluate initiatives that may be able to help. This could include government assistance programs, debt relief programs, financial literacy education, and other initiatives to support those affected by inflation.
Stay informed about the economy. Being aware of inflation rates and other economic trends can help you stay ahead of potential changes that may affect your financial situation. Grasping the correlation between factors such as unemployment, wages, taxes and expenditure to one's mental health can help you be proactive in protecting your mental health.
Seek mental health support when needed. Mental health issues related to inflation should not be ignored, so it is important to seek professional help if needed. Talking to a psychologist or therapist can provide valuable guidance on how to manage symptoms like stress and anxiety. Professionals can also be a valuable source of insight and knowledge, providing information on resources that you may have overlooked.
Next Steps:
To protect your mental health while coping with inflation, it is crucial to make an effort to ease financial pressure, practice self-care regularly, and talk with a mental health professional. This can include creating a budget, paying down debt, leveraging assistance, reducing spending, and/or looking for ways to increase your income. Additionally, you should make time for self-care and relaxation, such as engaging in activities that bring you joy or spending time with family and friends. Finally, don’t hesitate to reach out for professional help if needed. Working with a mental health expert can provide valuable insight and resources as you navigate this difficult economic environment. With the right support, you can protect your mental health while dealing with inflation and its associated financial stressors.
Choosing the right therapist
The first step is to research different professionals in your area who are experienced in helping people cope with financial stress. Consider looking for someone whose approach and background align with your needs and goals. Ultimately, working with a local therapist can be extremely beneficial because they will be familiar with the region and its resources, and also be aware of issues that are impacting people in the community.
Groundwork Therapy is a Brooklyn-based team of licensed clinical psychologists and therapists who provide therapy to adolescents, adults, and couples. They welcome individuals of all genders, sexualities, and cultural backgrounds throughout the Brooklyn area including neighborhoods such as Park Slope, Prospect Heights, Clinton Hill, and more. They are uniquely positioned to help and support communities that have been disproportionately impacted by inflation.
No one should have to face the stress of inflation alone. With the right resources and support, it is possible to manage the mental health impacts of this economic phenomenon.