How to avoid the financial crisis and depression in the pandemic?

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How to avoid the financial crisis and depression in the pandemic?

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The pandemic was a watershed in the functioning of society. In addition to health problems, the financial crisis and depression are some of the consequences of Covid-19.

The big point is that in view of the uncertainties that the disease brought, social isolation has become a reality for long periods of time, and many people have had to deal with financial, family or unemployment problems.

That is, they had their mental health directly affected.

According to a research from the mental health benefits provider, Lyra Health and the National Alliance of Healthcare Purchaser Coalitions, 40% of employees admit to being exhausted.

Two-thirds of them say their mental health has been affected by the pandemic, interfering with their productivity.

In Brazil, the pandemic is far from over and much is said about the “fourth wave” of Covid-19, which predicts exactly these psychic consequences of the pandemic, such as anxiety, depression and other illnesses.

In this article we will deal with:

  • What is the fourth wave of the pandemic?
  • How is the population’s emotional and financial health?
  • Tips to escape the financial crisis and depression in the pandemic.

Are you interested in the subject? So, go ahead and have a good reading!

What is the fourth wave of the pandemic?

Health experts (doctors, psychologists and psychiatrists) describe the fourth wave of the pandemic as a moment that impacts people’s mental health.

It is a wave where Covid-19’s reflexes are evident, resulting in stress, anxiety, financial crisis and depression.

This occurs due to the economic insecurity in the country, the market uncertainties regarding employment and the disease itself and the social isolation, which causes fear and panic in people.

But are we not already experiencing this fourth wave? We will see below some numbers that can confirm this scenario.

How is the population’s emotional and financial health?

One study by the University of São Paulo (USP) revealed that Brazil leads the ranking of cases of anxiety caused by the pandemic. Anxiety affected 63% of people and depression 59%.

These numbers are mainly linked to social isolation, the survey revealed.

This is reflected in a 250% increase in the number of psychological consultations, according to Amarq, specializing in benefit management.

If emotional health has been affected, financial stress has also become part of the routine of many families.

According to PNAD (National Household Sample Survey), carried out by IBGE (UK residents Institute of Geography and Statistics), unemployment broke a record reaching 13.5% of the populationin all, more than 13.4 million people were left without work in the country.

Even so, the year 2021 started with a greater number of indebted UK citizens, reaching 66.5%, pointed to a survey by the National Confederation of Trade in Goods, Services and Tourism (CNC). This corresponds to an increase of 1.2% compared to January 2021.

Given these data, it is possible to see that the so-called fourth wave of the pandemic is already a reality. After all, the financial crisis and depression have been affecting the population in a concrete way on a daily basis.

Tips to escape the financial crisis and depression in the pandemic

With the fourth wave on the rise, which is accompanied by the financial crisis and depression, it is essential to pay attention to some points so as not to sink into these problems. To help you stay well in the pandemic, here are some tips below. Check out!

Don’t overdo negative stimuli

This is a moment where being aware of all events can make a difference to be assertive in care and prevention against Covid-19. However, too much information can cause anxiety and fear.

Even so, to try to seduce this overload of negative information, avoid spending 24 hours a day watching the news or reading news of the pandemic. Try to alternate this time with moments of fun, like watching a movie, series or even reading a book.

This small change in your day-to-day life can boost your spirits and lessen the stress and worries related to the pandemic.

Keep in touch with your friends and family

Social isolation is part of our reality and with that we miss an emotional support from our friends and family. However, it is possible to alleviate this situation of detachment using technology to your advantage.

Use your computer or cell phone and set up routine conversations with your colleagues and family. Despite the physical distance, this type of interaction, even at a distance, can bring relief to your mental health.

Create routine

The lack of control, mental and financial, are increasingly accentuated with the pandemic. The solution to not sink into these problems is to establish a daily routine. Defining schedules for work, exercise, lunch, dinner and sleep.

Having this control over the day itself can bring a greater sense of tranquility about the routine, since you will know exactly what you need to do in your day.

And not only that, a planned day is based on the organization, which gives some relief on what you have to do.

Put everything on the tip of the pencil

The financial crisis and depression are also related to the pandemic. After all, financial stress directly affects people’s behavior.

So much so that 78% of them point to financial uncertainty as the main cause of concern and anxiety on a daily basis, according to a survey by ISMA-BR (International Stress Management Association in Brazil).

So, to avoid sinking into a financial crisis in the middle of a pandemic, it is essential to have complete control over finances. This means that everything must be at the tip of the pencil, earnings and expenses (fixed and variable).

With this view on your accounts it is easier to make cuts, avoid excessive spending, take your accounts to the red, and save money.

Check out other content on our blog where we talked about keeping your financial health up to date, clicking here.

Cut expenses

With the country’s financial instability, cutting expenses can be of great value in order not to get into the red and let yourself be dominated by financial stress.

Amid the pandemic, 60% of UK citizens postponed some of their purchases and 37.7% started saving resources out of pure concern for the future, according to research by FGV Ibre.

Therefore, follow this same path and prioritize the essentials (medical insurance, rent, electricity, water) and cut variable expenses (streaming services, mobile phone plans, TV).

Take advantage of this moment of isolation to save money that you would use for outings or eating outside the home.

Every economy, in this time of pandemic and financial instability, can make a difference to avoid the financial crisis and depression, caused by financial stress.

Renegotiate debts

80% of people feel sadder when they are in debt, showed a study by the National Confederation of Shopkeepers (CNDL) and the Credit Protection Service (SPC). In Brazil there are more than 61 million people in debt.

In this scenario, the pandemic can show the financial crisis and depression. To try to change this scenario, a good alternative is renegotiate debts. Thus, it is possible to prevent everything from becoming a snowball.

The pandemic is a good time to take that debt that is weighing on your budget and sit down with your creditor to extend the payment, reduce interest rates or perhaps ask for a cash discount.

These debt renegotiations are critical to relieving your mental health, reducing stress and worries about your finances.

Get out of the financial and mental hole!

As we realized throughout this content, the financial crisis and depression are a reality within the fourth wave of the Covid-19 pandemic that the country has entered. With that, many people had their emotional health and financial health affected.

However, the biggest danger is not going through the financial crisis and depression, but sinking into them and not knowing how to get out. To avoid this, we have presented some tips above so that you do not dive headlong into mental and financial problems.

Since, despite the pandemic, social isolation and financial instability, it is possible to move on, organizing and controlling your day and your finances.

Did you like our article? Then, subscribe to our blog newsletter and stay on top of the best personal and financial management content, especially in times of pandemic.

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