It’s been all over the news for the last few months, and it affects millions of people in Britain. We’re of course talking about the dramatic rise in living costs that we’re experiencing currently.
According to the Office for National Statistics, two thirds of adults in Britain have said that their cost of living has increased in the last month. This is due mainly to the rise in energy prices. The wholesale price of gas in January 2022 was almost four times higher than in early 2021. Now millions of people are having to choose between ‘heating or eating’. What’s more, this month the energy price cap is set to increase even further still, rising by a whopping 54%. This increase is expected to add £693 to the average annual household bill.
Money is one of the most common causes of stress, and this news is of course causing stress and anxiety for a lot of people. As you know, Financial Wellness is one of our core elements within our 8Wise Model as it’s intrinsic to our overall health and wellbeing. Not only is it essential in itself, poor Financial Wellness can also negatively impact other wellness elements. For example, money worries can cause you to feel anxious or even depressed (Emotional Wellness), this can lead us then to feel rubbish physically and become more susceptible to colds and infections (Physical Wellness).
So how can you protect your Financial Wellness during this time?
Firstly, it’s important to keep up to date with the news and what it means for you. What changes are coming up? What do all these financial terms mean? Is there any support available that you qualify for? Having a good understanding of the situation makes it easier for you to create a plan and make decisions that are best for you.
It’s also worth making sure that you’re getting the best deals available on everything. That includes your mobile phone, internet, car insurance, utility bills, gym membership etc. When you’ve made sure that you’re not paying more for things than you need to, it’s a good idea to sit down and set yourself a budget. What are your monthly outgoings and incomings? How much expendable income are you left with each month? How much do you want to be saving?
It’s also important to identify what money means to you. Perhaps your favourite thing to do is try different restaurants – money is a means for you to do this. Or maybe money is important to you because it means you can donate to the causes close to your heart. Understanding your own unique relationship with money is a really important step for budgeting, and for developing Financial Wellness.
Finally, it’s important to look after yourself! Go for a walk, get 8-9 hours of sleep, fuel your body with healthy foods, drink water, talk to friends… It’s easy to neglect self care when you’re feeling stressed or overwhelmed, but it’s one of the most important things you can do to prevent mental health issues from arising down the line.
For more advice on finances, we really recommend Martin Lewis’s website www.moneysavingexpert.com
https://8wise.co.uk way is meant to help you to manage potential turbulences, triggers, and traumas, so that you can continue to work towards a state of optimal mental health. It helped me, it has helped my clients, and I passionately believe that it can help you too.
