In the midst of another COVID19 state-wide lockdown, stress is at an all-time high for many individuals. We saw Melbourne lock down for 112 days in 2020, giving Victorians just four reasons to leave their homes, while thousands of businesses were forced to shut. NSW unfortunately took a hit when it too was locked down on June 26 given the spread of the delta-variant. While physical health is the utmost priority for politicians in stopping the virus spread, our mental health can take a toll due to multiple factors.
One of these reasons is that the pandemic is not simply a health crisis, due to lockdown it has become a financial crisis too. With many workers having hours cut, being made redundant or being locked down unable to leave home for work, it’s no wonder we are worrying about money. The link between mental and financial health can be a counterproductive cycle, where financial stress leads to poor mental health, followed by an inability to access paid counselling or psychological services due to a lack of income. But remember, there is government assistance via a mental health plan where you will be entitled to Medicare rebates for up to 20 psychological appointments per year until 30 June 2022. Simply visit your GP, explain your circumstances and fill out the paperwork with them.
We give you 5 tips on how to limit and cope with current financial stress.
- Admit there’s a problem
The first step in solving any issue is admitting there is in fact one. Often when people are going through crisis they will find ways to escape that are often negative such as overindulging in alcohol or comfort foods. These coping mechanisms are simply a Band-Aid fix and can cause a plethora of additional issues resulting from a lack of nutrition and sleep. Recognise the emotions you’re experiencing which may be things such as stress, frustration, confusion and helplessness and acknowledge where your finances currently are. Talking about these feelings with a trusted family member or friend is one way to unload these frustrations so you don’t have them bottle up and become overwhelmed. It also allows new perspectives and ideas to be considered that they may be able to offer you.
- Reduce unnecessary spending
Although retail therapy is one way to cope with life’s challenging times, it’s the last thing that’s going to assist you while your finances have already been affected. With that off the table, focus on your necessary bills including car bills, rent, utilities, phone bills and insurance. Many companies now have financial hardship procedures in place that allow you to introduce a payment plan where you can pay your debt off in instalments rather than all at once. It’s worth getting in touch with all your debtors and asking them how they can assist you during this time. They may lower your fees or delay them, which would take a lot of immediate financial strain away if you haven’t saved an emergency fund for times like this.
It goes without saying, but credit cards and BNPL services must also be used sparingly so that you don’t come out the other end of this pandemic with even more debt.
- Speak to a financial counsellor
It’s OK if you can’t handle it on your own, there are services such as the National Debt Hotline that can offer you free information and advice on handling your current debt. This confidential service is both free and non-for-profit and can be accessed by phone 1800 007 007 or LIVE chat on their website. Financial counsellors may suggest ways that you can improve your financial situation, assess your eligibility for government financial support, speak to your creditors on your behalf about repayment, assist you in applying for a hardship variation, educate you on the risks of bankruptcy and debt agreements and refer you to external services who can provide support or legal aid if required.
- Use this time to upskill
If you’ve been made redundant or have reduced hours, use this additional time to upskill via some online training or research. When you do eventually go back to the workforce, you will have new knowledge and skills that you didn’t hold prior to the pandemic that may even improve your chances at securing a new role. It’s also a great way to keep your mind busy and away from ruminating on your stress and financial strain.
- Manage stress
It may seem obvious, but lowering anxiety in every area of your life will lower the amount of stress you’re experiencing related to your finances. We all know the saying “the straw that broke the camel’s back” referring to when things accumulate and one thing sends you right over the edge. Some ways to look after your anxiety and mental health so you don’t end up toppling over include exercise, breath work, meditation and reading. It pays to get off your phone, away from screens and the news and spend more time connecting with family members (if you live with others) or calling a friend to chat on the phone. Social connection is strained due to coronavirus, so finding ways to speak with friends is integral. Avoid talking about the pandemic and instead chat about things that make you feel at ease.
