Embracing a Positive Mindset Amidst the Cost of Living Crisis: Don't Let Fear Take Over

It seems like every week there is another news story or article about the cost of living being at crisis point and how this is affecting us. Yes, food is very expensive. Yes, interest rates are high. Yes, salaries are found wanting when compared to some other countries. And yes, this makes us all feel very, very scared! Even those of us that usually have a fairly robust mindset around money are beginning to feel the fear. However, it’s during these challenging moments that purposely cultivating a positive mindset becomes crucial. By shifting our perspective, focusing on what we have, instead of what we don’t have, and taking a few practical and proactive steps, we can regain control over our emotional response to the current economic climate. And while a positive mindset won’t reduce your mortgage interest rate, operating from a position of calm clarity is going to serve you much better than operating from a position of fear.

So, take a deep breath, relax your shoulders, and let’s talk.

Know your Numbers – Shift from Fear to Empowerment

Fear feeds on the unknown and can immobilse us, preventing us from taking the necessary steps to improve our circumstances. Bring your financial situation into the light to get the full picture of where things are really at for you financially. This means knowing your incomings and outgoings – not approximately – to the cent. This means being aware of upcoming changes i.e. knowing when your mortgage is coming off its fixed rate, and having a plan for these changes. While the full picture of your finances may not always be pretty, it’s essential to know your starting point to be able to plan and improve your financial situation.

Prioritise Financial Planning

Developing a financial plan is essential, and it doesn’t have to be over-complicated. Keep it simple! Set realistic goals, create a budget, and track your expenses. Identify any “hotspots” - areas where you can cut costs or find more affordable alternatives. Engage with professionals such as a Financial Adviser or speak to someone about debt management – search out the help you need, you don’t have to do it all on your own.

Embrace Gratitude

Change your focus to what you DO have rather than what you don’t. Be grateful for all the things that you may be taking for granted. Do you walk to work? Be grateful, you’re saving on transport costs. Do grandparents look after your kids from time to time – that’s free childcare, be grateful. Appreciate the simple joys in life: spending time with your kids, going for a walk, talking with a friend – these things won’t cost you a cent. Gratitude lowers stress levels and boosts resilience for all-round better wellbeing.

Foster a Growth Mindset

A growth mindset is the belief that challenges are opportunities for growth and learning. Rather than succumbing to a victim mentality, view the cost of living crisis as a chance to develop new skills, explore alternative income streams, and adapt to changing circumstances. Embrace lifelong learning and seek out resources that can enhance your financial literacy – there are so many amazingly helpful online tools and books available to educate and inspire you. Pop into your local library and check them out for free!

Cultivate a Supportive Network

Surround yourself with people who uplift and inspire you. Seek out like-minded people facing similar challenges to share experiences and exchange advice. There are a huge number of Facebook groups dedicated to financial well-being – get involved. Building a strong support network can provide emotional support, offer practical solutions, and remind you that you are not alone in this journey.

Take Care of Your Well-being

Maintaining your positive mindset takes intentionality. It requires taking care of your physical and mental well-being. Ensure you’re prioritising self-care activities such as exercise, a decent amount of sleep, and healthy eating. Incorporate some fun into everyday life, even if that just means a boogie around the kitchen while you’re waiting for the jug to boil. Lighten up a little!

While the cost of living crisis may evoke fear and uncertainty, it's essential to remember that your mindset plays a pivotal role in navigating these challenges. By embracing a positive mindset, knowing your numbers, empowering yourself, and taking proactive steps, you can survive and even thrive.

Remember, it's in our ability to adapt and find opportunities amidst adversity that true growth and resilience are born.