The Unseen Costs of Financial Stress: Mental Health

Sydney’s property market has long been a topic of heated discussion, but the current climate has many feeling the weight of financial stress like never before. With soaring property prices, high interest rates, and the escalating cost of living, it’s no surprise that mental health is taking a hit.

The Emotional and Psychological Impact of Stress

Financial stress doesn’t just strain wallets; it affects minds as well. The pressure to navigate market volatility, manage tenants, and make sound financial decisions can lead to anxiety, depression, and even burnout. Investors can feel overwhelmed by the unpredictability of the property market. Many describe sleepless nights, constant worry about their investments, and a growing sense of hopelessness.

Signs of Anxiety and Depression

Anxiety often manifests as an unrelenting fear of the future. For property investors, this might mean obsessing over market downturns or fearing poor financial decisions. Physical symptoms can include restlessness, difficulty concentrating, and even panic attacks.

Depression, on the other hand, can creep in when the stress feels insurmountable, leading to feelings of helplessness, fatigue, and a loss of motivation. Changes in appetite, sleep disturbances, and a lack of interest in activities once enjoyed are also common signs.

Note: Anxiety and depression significantly impair our ability to think clearly and make sound decisions, often clouding our judgement with overwhelming worry or hopelessness. For property investors, this can lead to rash financial choices or a sense of paralysis, where even small decisions feel insurmountable.

Over time, this chronic stress can escalate into burnout, a state of physical, emotional, and mental exhaustion that is both challenging and time-intensive to recover from. Burnout can strip away motivation, making it difficult to regain a sense of purpose or control. This is where seeking help from a psychologist becomes invaluable. Psychologists are equipped to guide individuals through these complex emotions, helping to untangle negative thought patterns, rebuild resilience, and provide practical strategies to move forward.

Tips: Interestingly, anxiety and depression may manifest differently in men and women, making it harder to notice, though this is not always the case.

Men may express distress outwardly, such as through irritability, anger, or increased risk-taking behaviours. Women, on the other hand, may internalise their feelings, leading to heightened anxiety or feelings of guilt.

Building Resilience and Coping Strategies

Managing financial stress requires a proactive approach to mental and physical well-being. One effective strategy is to disconnect in the evening from screens. Constantly checking emails, property prices, or financial news before bed can heighten anxiety and disrupt sleep by putting us in flight-or-flight mode. Setting boundaries around screen time, especially in the 2-3 hours leading up to bedtime, can help create a calmer mental space. Maintaining a consistent sleep routine is also a requirement for mental health. Going to bed and waking up at the same time each day helps regulate your body’s internal clock, improving mood and reducing stress levels.

During the day it is a good idea to reduce the monitoring of property prices or market trends. Checking these multiple times a day can lead to unnecessary worry and stress. Instead, designate specific times for these activities, such as once in the morning or early afternoon, to avoid being consumed by constant updates.

It’s also important to avoid substances like alcohol, caffeine, and other stimulants or relaxants. While they may provide temporary relief, they can interfere with sleep and exacerbate mental health issues in the mid to long-term. Reducing or eliminating these substances can lead to better overall well-being.

Regular physical activity is key. Exercising at least two to three times a week, even with light activities like fast walking, can help reduce stress and boost mood. Breaking a sweat, even briefly, helps with promoting a sense of calm and happiness.

Finally, socialising weekly plays a vital role in maintaining mental health. Making time to connect with friends or family, even if it’s just a quick message to someone you haven’t spoken to in a while, can provide emotional support and reduce feelings of isolation. Just be mindful not to overdo alcohol consumption while socialising, which can make matters worse the day after.

The Role of Therapy and Counselling

Seeking professional help, whether through therapy or counselling, can be transformative. Cognitive Behavioural Therapy (CBT) has the most evidence for addressing negative thought patterns and behaviours tied to financial stress. Mindfulness-based therapies can also help individuals stay grounded and reduce anxiety.

Adam Horvath, clinical psychologist at Personal Psychology, a psychology clinic on the Lower North Shore in Sydney, notes, "Money stress can feel like it's taking over everything, leaving you trapped in worry. But asking for help isn't a sign of weakness; it's a smart move. Therapy gives you a safe space to sort through the chaos, clear your head, and pick up practical tools to help you move forward with confidence."

Reaching Out

Reaching out to a psychologist to book a session can make a significant difference in managing stress and reclaiming control. Taking that first step can feel daunting, but it’s worth it, so just do it. However, if things feel overwhelming or too close to the edge, don’t hesitate to reach out to Lifeline in the interim. Their crisis support can provide immediate relief and a listening ear during moments of heightened distress. While crisis management isn’t a substitute for therapy, it can offer support while you’re waiting to connect with a psychologist.

Note: Mental well-being can be part of investing. In fact, it needs to be part of it to achieve long-term financial success. Recognising the emotional and psychological toll of financial stress is the first step toward building resilience. Working with a psychologist can help develop the coping strategies and mental tools needed to navigate turbulent financial times with greater clarity and confidence.

If you’re feeling overwhelmed, it’s important to remember that support is available. Psychologists and therapy can provide the guidance and strategies needed to face these challenges. Taking action is a step toward regaining balance.

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