Rate rises costing us sleep: five stress-relieving savings tips

Interest rates and inflation aren’t just affecting our wallets, but our mental health. New data shows that young Australians are literally losing sleep over the rising cost of living.

The research, commissioned by YouGov in consultation with ubank, found that out of 1000 Australian Gen Zs and Millennials (aged 18-41) interviewed in November 2022, 61% confessed to either experiencing difficulties sleeping, losing sleep, or staying up at night because of checking and thinking about their personal finances. Two in five (41%) admitted that this happens at least once a week.

Owing money was found to be particularly stressful, with 54% of young Australians in debt reporting experiencing sleeping difficulties, losing sleep, or staying up at night at least once a week due to thinking about or checking on their personal finances, compared to 27% of those who aren’t in debt.

It’s also possible that some of these sleepless nights could be partly attributed to bedtime habits. The research found that over a quarter (27%) of young Australians check their finances before or during bedtime hours, while a similar proportion (25%) just check whenever they need or want to. Homeowners (31%) were found to be more likely than non-owners (24%) to say that they typically check their personal finances before or during bedtime hours.

To help Australians manage their money and hopefully enjoy a better night’s sleep, ubank offers the following tips:

1. Get your finances together: Put all of your savings, loans, ongoing bills and more into one budget, whether that’s in a spreadsheet or an app.
2. Get high interest rates working for you: Check with your bank to see if they’re passing interest hikes on to savers, and if not, it could be time to look for one that offers a high-interest savings account.
3. Track your spending: Small expenses have the potential to add up quickly. Breaking down your spending into common categories will allow you to understand exactly where your money is going, and help you budget accordingly.
4. Reconsider some subscriptions: It’s important to regularly look at your existing subscriptions to check that the costs haven’t increased without you realising. Some bank apps will let you see all your subscriptions in one place, so you can work out which ones you no longer want or need.
5. Know you’re not alone: Speaking to a partner or loved one about your money stresses can not only reduce the stigma but also help you realise that you’re likely not alone.

Australians struggling to manage debts can contact the National Debt Helpline for access to free financial counselling. For mental health support and advice, consult your doctor or mental health professional.

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