The psychological impact of financial insecurity

We often talk about the cost of living in terms of what we can and can't afford. But I

think there is another part of financial insecurity that is less visible: what it can do to

our sense of safety.

When money is tight, there can be a constant background calculation. Can I afford this? What about next month? What happens if the car needs repairing, the boiler breaks, or the dog has an unexpected trip to the vet? Perhaps you are already relying on your overdraft and know that there isn't much room left if something else goes wrong. Even when you are managing, knowing that there isn't much financial

wiggle room can make it difficult to feel settled.And it isn't just the time spent thinking about money. There can be a loss ofpsychological spaciousness. When so much mental energy is taken up with bills,spending and trying to anticipate what might happen next, there can be less capacityfor the lighter things in life. Creativity, rest and enjoyment can start to feel like things that have to be justified, rather than things that are just part of life.

Money can also give us something that isn't always obvious until we don't have it:

choice. Financial security can mean knowing that if something goes wrong, you have

options. You might be able to leave a job that isn't working for you, pay for something

unexpected, support someone you love or make a change in your circumstances.

When those options become less available, it can feel quite confining.

I think it is also important to recognise that financial insecurity isn't simply an

individual problem of managing your finances better or making different choices.

Sometimes the environment really is less secure. If your income no longer stretches

as far as it used to, housing costs have increased or there is very little room for an

unexpected expense, it makes sense that this might affect how safe you feel.

Perhaps part of what makes the cost of living crisis so difficult isn'

t only what we can

no longer afford, but the sense that our room to manoeuvre has become smaller.