Many Australians are struggling to pay rent or meet mortgage repayments, can barely pay bills, and have had to make significant lifestyle changes as a result of financial pressure.
Now research from financial comparison site Finder has examined lesser-known side effects of the rising cost of living.
According to the research, 52 per cent of Australians — roughly 10.5 million people — have endured personal setbacks ranging from poor sleep, to accelerated ageing and increased arguments with loved ones.
One in three respondents (33 per cent) said they had lost sleep because of financial worries in the past year, while almost one in five (18 per cent) attributed more grey hair, wrinkles, or hair loss to money concerns.
Almost one in five (19 per cent) have experienced other illnesses related to stress as financial pressures build.
Relationships with romantic partners and relatives are also suffering.
According to Finder, 19 per cent of Australians have had arguments with their partner due to financial pressure, while 11 per cent had argued with family and friends because of money.
Cost of living and housing concerns dominate Parliament
Erin Smith, a 30-year-old lawyer from Brisbane, said her living expenses have virtually doubled since rates began rising in May 2022.
“Higher mortgage repayments and higher costs of utilities has had the most significant impact on me,” she said.
“As a single-income household, I’ve noticed that I’m now having to put double the amount aside for my living expenses than I used to.”
Despite earning an above-average wage, rising financial pressure has affected her stress levels and sleep quality.
“The rate rises have impacted my stress levels, I now budget weekly instead of monthly and constantly have money and finding ways to save money on my mind,” she said.
“I also often have dreams associated with money or money stress.”
Graham Cooke, head of consumer research at Finder, said money issues can contribute to problems in “every area of life.”
“Mortgage and financial stress have edged up – this shows that families in Australia are still under significant cost of living stress, despite inflation cooling somewhat,” he said.
“Financial stress can cause problems in every area of your life and can start to snowball very quickly.”
Finder also found a gender split when it comes to side effects of cost of living concerns, with 62 per cent of women reporting issues related to money stress compared to 42 per cent of men.
Younger Australians also appear the most susceptible to financial stress, with 69 per cent of Gen Z admitting they had experienced issues related to financial stress.
