Any uncertainty in an area of importance is very stressful. The human mind experiences stress whenever there is change (even if change that is positive). It does not mean that all change is bad, but uncertainty from a change that feels fully out of our own control is particularly stressful and more likely to have a more significant negative impact on our mental health and well-being. Economic uncertainty can fit into the category of something that feels outside of our personal control. Our Lifeworks’ Mental Health Index revealed that a negative but certain outcome such as job loss is stressful but is actually less stressful than the uncertainty from a fear of job loss or reduced hours or wages. Those who are more vulnerable, to begin with, are more impacted. If one has a cushion of savings and financial knowledge and options, there is a sense of control even in uncertain times. This sense of control and the feeling that although you may be impacted in the short term, you can manage generally in the long term, is a big factor in mitigating stress. Research from Lifeworks’ Mental Health Index also found that a lack of emergency savings is a driver of lower mental health regardless of income. We found individuals without personal savings are 50% more likely than those with emergency savings to have difficulties sleeping because of stress. “We found individuals without personal savings are more likely than those with emergency savings to have difficulties sleeping because of stress.” 50% Bus i ne s s & Economy Finance Monthly. 16
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