If you’ve found yourself lying awake at night, staring at the ceiling and worrying about your bank balance, you’re certainly not alone—especially as we head into 2025. The cost of living seems to be rising faster than a kangaroo on a trampoline, and according to recent research, nearly half of all Aussies (a whopping 46 per cent!) started this year already in debt. It’s no wonder so many of us are feeling the pinch and the pressure.

But what can you actually do about it, aside from hiding your wallet under the mattress and hoping for the best? We’ve taken a deep dive into the latest advice from clinical psychologist and best-selling author Dr Rebecca Ray, who recently shared her wisdom on The Pay Off with Sylvia Jeffreys podcast. Her insights are practical, science-backed, and—best of all—easy to put into action, no matter your age or financial situation.


Does Money Really Buy Happiness?

Let’s start with the age-old question: does money buy happiness? Dr Ray says the answer is a bit more nuanced than a simple yes or no. 'The research tells us that it actually does up to a certain amount,' she explains. 'It’s based on being able to meet your basic needs and also have a little bit left over for living well.'


In other words, you don’t need to win the lottery to feel content. What matters most is having enough to cover the essentials—food, shelter, bills—and a little extra for the things that make life enjoyable, like a cuppa with friends or a trip to the movies. The real stress comes when you’re not sure if you can pay the rent or put dinner on the table.

How Money Stress Shows Up in Our Lives

Money worries can sneak up on us in all sorts of ways. Maybe you’re feeling anxious, irritable, or even a bit down in the dumps. Perhaps you’re having trouble sleeping, or you find yourself snapping at loved ones over small things. Dr Ray points out that these feelings are completely normal, but they don’t have to take over your life.


Simple Strategies to Tame Money Anxiety

So, what can you do when your mind starts spinning with worry? Dr Ray offers a few tried-and-true techniques:

Get Some Distance from Your Thoughts
When your mind is racing, try labelling what’s happening: 'My mind is worrying right now.' This simple act can help you step back and see your thoughts for what they are—just thoughts, not facts.

Another great tip is to write your worries down. Getting them out of your head and onto paper can stop them from snowballing and help you see things more clearly.


Soothe Your Nervous System
If your anxiety is making it hard to sleep or function, it’s time to calm your body as well as your mind. Dr Ray recommends a simple breathing exercise: breathe in for three seconds, out for three seconds, and repeat for ten breaths. This sends a signal to your nervous system that you’re safe and there’s no need to panic.

You can also ground yourself by focusing on your senses. What can you see, hear, feel, or taste right now? Or, for a bit of fun, try thinking of as many animals as you can that start with a certain letter. It might sound silly, but it really does work!

Remember: You’re Not Alone
Money worries are incredibly common, especially in uncertain times. Don’t be afraid to talk to someone you trust, whether it’s a friend, family member, or a professional. Sometimes just sharing your concerns can make a world of difference.


Extra Tips for Seniors: Managing Money Stress in Retirement

For our Seniors Discount Club members, money worries can feel even more pressing if you’re on a fixed income or dealing with unexpected expenses. Here are a few extra tips tailored just for you:

• Review Your Budget Regularly: Even if you’ve been managing your finances for decades, it’s worth sitting down every few months to see where your money is going. Are there any subscriptions or services you no longer need? Could you be getting a better deal on your utilities or insurance?
• Seek Out Discounts and Support: Don’t forget to take advantage of seniors’ discounts, government concessions, and community programs. Every little bit helps!
• Stay Connected: Financial stress can be isolating, but you’re not alone. Reach out to local community groups, support services, or even our own SDC community for advice and a friendly ear.

When to Seek Professional Help

If your money worries are overwhelming and affecting your health or relationships, it might be time to chat with a professional. Financial counsellors can help you make a plan, and mental health professionals like Dr Ray can support you in managing anxiety and stress.

Let’s Keep the Conversation Going!

We know that talking about money can be tough, but sharing your experiences and tips can help others feel less alone. Have you found any strategies that help you manage money stress? Or do you have a question for the community? Pop your thoughts in the comments below—we’d love to hear from you!

And remember, while this article offers general advice, it’s always a good idea to consider your own circumstances and seek personalised support if you need it.
Stay strong, stay savvy, and remember: you’re part of a community that cares.