10 Ways of Coping with Inflation Anxiety
By Ashley Shoptorshi Samaddar April 14, 2023 Update on : April 14, 2023
Inflation has always been a dreaded plague for every country. With inflation comes recession, and with every job cut, a family faces numerous troubles from financial instability to mental trauma and anxiety. The current world we live in has been flooded with a series of inflation depressions one after one over the last half a decade.
Right after coronavirus pandemic, the entire world faced a tremendous economic setback. To cope with it, industries and companies had to cut down employee salaries or even sack them. However, the daily necessary commodities turned even more expensive them before.
According to the International Labour Organisation (ILO), after the recent earthquake which hit Turkey and Saria on February 6, 170,000 people lost their jobs. Meanwhile, around 657,000 workers lost their bread and butter in Turkey with over 150,000 workplaces reduced to rubbles.
The same report also highlighted the rapid price hike of daily commodities like food and medicine. Basic necessities which were once affordable turned into something outside the common populations’ paygrade.
Therefore, anxiety over inflation is natural with your survival hanging in the balance. The weight of inflation can have an overwhelming psychological impact not only on the individual but his/her entire family.
Moreover, the psychological effects of inflation cause a sharp rise in the tendency to commit economic suicides which is a grave concern for every country.
The rising anxiety over inflation can be overwhelming as inflation affects every aspect of your life. This is also why inflation and mental health are closely related.
Inflation causes a depression that impacts economic stressors on one’s well-being and should not be underestimated. It has the potential to wreak havoc on your emotional and mental health. Yet, no matter how difficult it gets to manage your finances and make ends meet, panicking during the inflation period would be detrimental to you in the long run.
Here are 10 ways to help you deal with inflation anxiety during this tough time:
There is a famed Chinese proverb that says, if you know you enemy well, you will never find yourself in peril even if you have to battle him a hundred times. Knowing what inflation is and how it works might help alleviate inflation-related fears.
The term “inflation” refers to an increase in the cost of living as a whole. If you know what to expect from inflation, you may make plans for how to handle your money in the face of it, and even find alternatives to cope with such a situation. For instance, we could our produce a fraction of own food via gardening on the backyard or the rooftop to save money on groceries.
Concerns about inflation can be controlled effectively with proper budget management. With the current economic climate, it is more important than ever to keep a tight eye on your income and spending patterns.
Making a budget gives you the ability to track where your money is going and identify areas in which you may save money.
Saving money for unexpected crisis is always a good insurance for yourself. It’s also a convenient and common way to deal with inflation anxiety.
It’s crucial to set aside some money in case of sudden costs or unemployment, which would keep you afloat to properly manage your financial situation.
Putting money aside can also help you prepare for retirement or a home purchase down the road.
Investing is an excellent strategy to reduce inflation-related stress. You may be able to generate returns on your investment in stocks, bonds, or other assets that are higher than the rate of inflation.
However, it is essential to consult a financial counselor before making any investment decisions, though, as investing involves risk.
It’s crucial to be a savvy shopper while dealing with price hikes during inflation.
You may save money by shopping around, using coupons, and comparing pricing. Keeping a look out for sale announcements is also a very good way of purchasing the product of your choice for a lesser price.
A debt during inflation depressions is like tying a stone to your leg and go for a swim in the ocean. Therefore, always keep yourself debt free.
However, in case you are already in debt, make sure to pay down debt interest rates and try to slowly pay off the principal before it becomes a major concern affecting your live during inflationary periods.
Paying off high-interest debt, like credit card debt, can free up cash that can be used to keep up with inflation.
Find Ways to Earn Extra
Inflation can make it hard to make ends meet, so it’s important to look for ways to earn extra money. In such situation, extra income comes as a bonus!
One option is to create a small business, preferably an online one which makes reaching customers much easier with almost no initial investment outside product inventory.
Part-time consultancy services, and free-lancing is also an excellent way to earn as it comes with no investment risk and is much less demanding than setting up a new business.
Focus on the Positive
It is easy to let worry and rising prices overwhelm you, but trying to look on the bright side will assist you in coping with these challenges.
Keeping an optimistic outlook can be an effective strategy for addressing concerns about inflation.
Engage in activities that provide you joy, such as hanging out with people you care about like your friends and family and devoting time to pursuits that excite you.
Depression and anxiety always come hand in hand with Inflation. Dealing with inflation stress can be difficult.
Try reaching out to mental health experts as they have the knowledge and expertise to help you reduce your stress and anxiety.
Sharing with your partner, family members, or friends can also help release pressure as their comforting remarks will help boost your confidence while their advice will help you see options that you hadn’t thought about to fight inflation.
Finally, it’s crucial to keep up with news about inflation and monetary developments.
In order to calm your fears of inflation, it is important to stay abreast with economic trends and to seek advice from experts.
Keeping yourself well-informed will help you deal with inflation fear and make educated judgements.
The aftermath of inflation can leave a country’s economy in shambles which takes years and even decades to recover from. When daily expenses become unmanageable, and one is unable to make ends meet financially, it’s essential to seek out resources and strategies to cope with inflation anxiety and regain financial stability.
Depression, price hikes, and financial stress are interconnected, making it critical to address inflation anxiety proactively and seek support when necessary.
Worrying about inflation is common, and it’s crucial to learn effective coping mechanisms. Though inflation is devastating and leaves your life in turmoil, you can overcome it with the correct preparations.
So, don’t let inflation anxiety eat you up and manage your finances smartly even if you face such a situation.