Navigating financial anxiety

Steps you can take to navigate your way back to better financial health.
Cost of living pressures are leading causes of financial anxiety for many Australians. Worrying about money can take its toll on your mental health. The Black Dog Institute, says, “The link between mental and financial health can be a vicious cycle: financial stress can lead to poor mental health, which can make taking action to protect your financial health harder. People may engage in unhealthy behaviours to try to cope with financial stress, from avoidance, to overeating and alcohol and drug misuse, which in turn can worsen mental health. Ongoing stress about money has been linked to physical ill health too, such as migraines, heart disease and sleep problems.”
During challenging times, small steps can help you feel more in control of your financial future. So, we’ll share some simple, practical actions you can take towards better financial health, and guidance on where to turn for help to get your finances back on track.
Many of us may feel awkward about sharing money matters with others or even feel a sense of shame about our finances. However, bottling things up may only make financial stress worse. Talking over your worries may help you come up with solutions that you hadn’t thought of alone.
Fortunately, there are skilled professionals, like financial counsellors, who help people understand which debts are priorities, develop budgets and money plans and understand the pros and cons of different options to manage financial issues.
Even if you prefer being self-sufficient, consider keeping your family up to date, if safe to do so, on your financial situation and see how they may be able to support you.
To better understand your money situation, record all your income and expenses in one place so you can see how much you're spending, and what you're spending it on.
When considering your money situation remember to:
Spending money on things like multiple streaming subscriptions, a lunchtime sandwich, or a bottle of water can add up to a significant monthly expense. Finding little ways to reduce your daily expenditure may help free up extra cash to repay debts and set you on a path to achieving your financial goals.
Are you ever tempted to splurge, or impulse spend? Have you ever seen something online that you just had to buy? Impulsive buying can wreck your budget and cause more financial stress. Consider these tips to help stop impulse buying:
The sooner you get started on dealing with your debts the more you’ll feel in control. Try to list your debts, the amounts you owe, the interest rates and repayments. Then number these loans in priority order, from highest to lowest interest rate.
Some tips to keep your debts in check:
A good budget helps you to take control of your money, save, organise debt repayments, and make the decisions that could change your finances for the better.
Check the following items off your to-do list to plan effectively, budget and remain in control.
Other support services are available:
Free Financial Counselling is available from the National Debt Helpline
Westpac has resources and tools to help people get back on their feet