Financial anxiety is a feature of many people’s daily lives at the moment. Hundreds of thousands of people have lost their jobs, while the end of the furlough scheme threatens the livelihoods of many more.
Lying awake at night counting the pennies may cause more harm than just making you tired the next day.
A lack of financial resilience
In a 2018 study, Zurich1 teamed up with a neuroscientist to explore the impact of not being financially resilient on our mental health and brain chemistry.
The study asked a group of survey respondents whether they believed they were financially resilient. Of those who did not, more than eight in ten said they regularly wake up at night worrying about money.
Neuroscientist Dr Jack Lewis suggested that chronic anxiety and stress releases large amounts of the stress hormone, cortisol, into our bloodstream. He continued: “Constantly worrying about finances means having chronically elevated cortisol levels, which gradually wears us down. In extreme cases, it can actually remodel certain brain areas.”
Ways to carry on
According to the research, one in three respondents said they would be unable to carry on with normal life if they experienced a financial shock or loss of income. Yet, while people feel vulnerable to a financial shock and an unexpected loss of income, nine in ten do not consider how to protect themselves. Instead, they are more likely to purchase insurance for belongings, than on their income. There are things you can do to mitigate the impact though.
Products such as income protection insurance, critical illness cover and life insurance can all help to buffer you and your family against life’s unexpected shocks. The payouts on these policies, should valid claims arise, can help you maintain your family’s lifestyle, pay your bills and mortgage, and get you back on your feet without significant financial damage.
1Zurich, ‘Cost of Resilience report‘ – 2018
This article is from ‘Your Money’ Autumn 2020. All details are correct at the time of writing. Written and supplied by The Outsourced Marketing Department.
