You’re seeing it everywhere in the media; the RBA hiking cash rates, inflated petrol prices and the supermarket squeeze on everyday staples.

 

It’s a hard pill to swallow, but the rising cost of living will impact our mental health (and our wallets) significantly – some of us may already be feeling the pinch. But it’s not all doom and gloom; here's how we can roll with the punches and adapt to the new normal.

To understand how the rising cost of living affects our mental health, we can refer to a theory in psychology called Maslow’s hierarchy of needs¹. Maslow’s model is based on a five-layer pyramid. Each level in the hierarchy (starting from the bottom) needs to be fulfilled before the next can be met.

The rising cost of living primarily affects our financial stability, which links to our physiological and safety needs.

 

Our autonomic nervous system is constantly scanning our environment assessing and responding in service to survival. It’s listening for cues, asking, “Am I safe? Or am I in danger?” and responds moment by moment.

 

The rising cost of living and risk of financial instability will often be perceived as a ‘threat’ and activates our sympathetic nervous system in response. We want to either fight this threat, or we want to run away.

 

Since this is an ongoing issue (and for the foreseeable future), rising living costs has become a source of stress, which can lead to mental health issues.

 

And according to Maslow’s hierarchy, some people won’t be able to fulfil their other needs like belonging, esteem and self-actualisation – especially people already in disadvantaged situations.

Supporting your mental health doesn’t need to cost you an arm and a leg. In fact, some of the best resources available to us are completely free of charge.

 

There are plenty of free mental health resources online or over the phone like Lifeline², Beyond Blue³, the National Debt Helpline⁴ and more that can help.

 

Similarly, there are ways we can destress at home without paying a single dollar. Practising a simple breathing exercise or taking a walk around the block is a great way to relieve the pressures of life. Don’t forget about relying on your support network too – just ringing up a friend for a chat can have numerous benefits for your mental health.

 

It’s important that we avoid living in a bubble and ignore the economic situation around the country, but we shouldn’t do it at the cost of our own health. If you’re experiencing increased anxiety, tightness in the chest or if your pulse quickens rapidly when hearing about the rising cost of living, it’s time to switch off the TV or the radio. Step outside, breathe in the fresh air and listen to your favourite music instead – these are all great way to relieve stress.

We’ve all experienced some form of turbulence in the past few years. We’ve learned that nothing’s set in stone, and our way of life is going to keep changing.

 

When we have a flexible autonomic nervous system, our overall mental health and wellbeing improves. Resilience is all about having a flexible autonomic nervous system, and the ability to move between a state of stress and a state of safety with relative ease. 

 

As we get better in recognising the situation and how our nervous system responds, we can learn how to take small steps to bring ourselves back into a state of recovery. This builds resilience and strengthens our mental health overall.