As we discussed in our previous article, the previous year has been fraught with unpredictability and uncertainty about the future. For many, there has also been an impact on our financial wellbeing, leading to financial stress and anxiety.
The Impact Of Financial Stress On Mental Health
According to Bridgette Di Ferdinando, a Social Psychologist and Treysta client and friend, the psychological impact of financial stress on the brain is the same as breaking an arm or a leg or being seriously ill.
Financial stress impacts our view of ourselves and our role in society. We start asking questions such as “have my goal posts moved?” or “does this impact my retirement?”. Financial stress has a significant impact on our feelings of independence and autonomy. It also directly impacts our ability to make decisions and choices.
Bridgette explains that to cope with financial instability and financial stress, we need to reframe what is happening now in a way that enables decision making. Her tips for developing a helpful mindset are:
- Don’t look too far ahead
- Make changes and adjustments to what you need for the next period
- Acknowledge your present state, your levels of anxiety and that you may not be able to do x, y or z in your financial plan right now
- Acknowledge that you might need to be flexible in your plan and potentially even pivot
Uncertainty Increases Anxiety Levels
In a conversation with Treysta’s Business Manager, Laura Mitchell, Bridgette explains how our inability to predict what comes next can dramatically increase our anxiety. While we cannot change the uncertainty of the next 12 months or more, we can change our levels of clarity to help mitigate it.
As individuals, leaders and business owners, we need to identify how we can take our minds out of crisis mode and into a position where we can make sound decisions. Bridgette suggests that to create clarity, we should:
- Think about what we can control in our immediate environment. While we cannot control external factors, we can create clarity by creating order, such as looking at our spending habits and how we structure our days.
- Be more transparent in organisational decision-making as this mitigates anxiety about what is coming next.
- Become a role model by encouraging others as well as ourselves.
- Let others take on some of the stress and anxiety we carry.
Helping you create financial clarity and in uncertain times
At Treysta, we’re here to help you replace uncertainty with confidence and financial clarity. Get in touch by calling 02 9241 2575 or email us at firstname.lastname@example.org.