An Acceptance and Commitment Therapy (ACT) Approach to Dealing With Financial Stressors

While ACT won't completely eliminate stressors or anxiety entirely as they're inherent in the human experience, the ACT approach emphasises actions aligned with personal values and psychological flexibility. This strategy helps in creating a meaningful life without becoming trapped by emotions.

Here’s how you can apply ACT principles to manage financial stressors:

  • Acceptance: Instead of trying to control or avoid financial difficulties, Identify and make room for challenging thoughts and feelings that may arise from the situation. Accept challenges as part of the process.

  • Mindfulness: Present moment connectedness can minimise feeling stuck in our negative thought processes. Practice being present and aware of your financial situation without judgement. Notice your thoughts, don’t label or judge them, and observe them as they pass by.

  • Defusion: Creating distance from unhelpful thoughts regarding finances can minimise the impact the thought has on your emotions. Defusion may look like noticing your thoughts on a cloud, singing your thoughts, or writing down your thoughts on a piece of paper.

  • Values: Identify and reflect on your core values beyond financial stability. Identifying what is important to you including relationships, creativity or personal growth can allow you to align your actions with what matters the most to you. Learning about your values can foster a sense of purpose and fulfilment beyond finances.

  • Committed Action: Focus on what you can engage with that aligns with your values to increase meaning in your life. This may involve setting realistic and achievable goals, breaking them down and taking consistent action despite the challenges. Committed action may also directly involve taking steps towards improving your finances based on your values, for example budgeting, saving or seeking financial advice. 

  • Self-compassion: Treating yourself with kindness, care, understanding and compassion during financial challenges. This involves speaking to yourself in a supportive and compassionate manner. Practice speaking to yourself how you would speak to your best friend that is going through the same challenges. 

If you need support, contact Sydney Psychology Group to book an appointment with one of our psychologists today. 

Written By: Cassandra Svircevic (Clinical Psychology Registrar)

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