- Employed people are more worried than those who do not work
- Nearly half of adults are staying at home more to save money
- Despite government support, they are most concerned about electricity bills
- Are you finding it difficult to cope? Find Free Sources of Help Below
- We also bring together tips on budgeting, investing, and pensions
New research shows that more than half of adults have experienced anxiety and a quarter have experienced depression due to rising bills.
Young people are more likely to struggle to cope, and those with jobs are more concerned about inflation and other financial pressures than those who work.
Overall, nearly half of adults are staying at home more to save money, as a financial lockdown imposed by themselves, according to a Personal Finance Society survey.
Money worries: rising bills make young people more likely to struggle, research finds
The findings chime with previous research showing that a majority of people say their financial situation affects their mental health.
And a separate new study indicates that people with high anxiety and who feel they have no control over their money are less likely to have substantial savings and be flexible with other assets.
Of the latter research, Sarah Coles, senior personal finance analyst at Hargreaves Lansdowne, says, ‘How we feel is linked to our finances.
‘While some people are benefiting from a virtuous cycle of feeling positive about their secure situation, others are locked in a vicious circle where their financial problems are feeding the misery that amplifies their money problems.’
PFS said its study on financial pressures and mental health uncovered a deep generational divide, with three quarters of 25- to 34-year-olds worrying about rising bills, compared with a quarter over 65s. .
It was also found that overall:
Nearly 60 percent of those employed are experiencing anxiety or worry as a result of rising bills, compared to 43 percent of those who don’t work.
– A fifth of people are eating less healthy food to cut costs, and 43 percent say they’re buying fewer takeaways and 39 percent less clothes
Despite the support announced by the government, people are most worried about the electricity bills.
Carolyn Stuart, president of the PFS, a professional body for financial advisors, says: ‘The British are struggling not only financially, but mentally to deal with rising bills.
More people are experiencing depression and anxiety when eating less healthy and going out less. Now there is also the risk of turning a cost of life crisis into a public health crisis.
The PFS surveyed more than 1,500 people at the end of October, weighted to be representative of the British adult population.
The Hargreaves Lansdowne study, conducted with forecasting firm Oxford Economics, looked at two emotional measures – whether people are anxious, and whether they feel negative and alienated from their money.
It found that ‘those with a high level of anxiety were less likely to have enough savings to be resilient (43 per cent compared to 64 per cent with low anxiety), having enough money left over at the end of the month (35 per 52 per cent) be flexible in terms of substantial savings in their pension (30 per cent as against 46 per cent) or property ownership (22 per cent as against 35 per cent).
Furthermore, the study reported: ‘People who feel they have no control over their financial situation are more likely to have less savings (47 percent have enough to be flexible, compared to 67 percent’). who feel they have some control).
Meanwhile, 37 per cent have enough cash left at the end of the month (compared to 55 per cent), 33 per cent have enough for their pension (compared to 49 per cent) and 37 per cent have enough money to own a house. Is. (as compared to 24 per cent).’
making ends meet? According to research by Hargreaves Lansdowne, only 35% of people with high anxiety had enough money left over at the end of the month
Coles says that either anxiety or money problems may come first, but they can easily feed a vicious cycle.
‘When we’re short of cash, we’re bound to be more concerned about our finances, and then when we’re more worried, it can make dealing with our money problems incredibly difficult. Is.
‘It’s easy to feel overwhelmed and because you have so many things to worry about, you don’t know where to start.
‘It can also be different, because you are embarrassed about the problems you face, which can make it extremely difficult to know where to turn.’
Regarding feeling out of control of your money, Coles says it can also be triggered by emotion or financial situation.
Your circumstances have put you in a difficult position and you don’t see a way to make things better, or your emotional health has disconnected you from your finances and gotten you into trouble, she explains.
‘Either way, one feeds the other, because not having control over your finances means things are only going to get worse.’
Hargreaves runs a savings and resilience barometer with the forecasting firm Oxford Economics.
It is based on data from the Wealth and Asset Survey by the Office for National Statistics – which draws information from 10,000 households – as well as other data from official sources.
Hargreaves says the barometer is structured around the five pillars of financial behavior — controlling your debt, protecting your family, saving for a rainy day, planning for the afterlife, and investing to make more of your money. .
How to get on top of your finances
We’ve pieced together the following tips from PFS, Hargreaves, and others on how to get started, where to turn for help, and what to do if you’re…
Credit: www.thisismoney.co.uk /