The recession is not only affecting our pockets, but our relationships as well. Yet, while people are feeling desperate and angry, there are also positive changes that are starting to emerge…

Research conducted by The Solution Workshop shows that the crisis has had a severe emotional impact on South Africans. People are feeling unhappy, anxious, depressed, angry, and there is also a strong sense of failure.

Cutting back

People feel they cannot afford to buy their children the things they need and despite feeling over worked as they take on extra opportunities to make money, they must cut back on those luxuries they feel they deserve.

As one responded commented, "It’s very bad, because you must cut down on things you like, just to get the basics — it’s not nice". Many households are rationing food and locking cupboards so that food can last and impulse shopping is a thing of the past.

Feelings of failure

Financial stress has also added to our anxiety levels. While some people are following strict budgets others are following the ostrich behaviour of ignoring debts. The inability to pay debts is leading to depression and feelings of helplessness. Respondents spoke about how angry and depressed people are becoming as well as the rising levels of aggression.

People feel very strongly that their children are suffering as a result. Apart from the fact that they have to keep saying no to children’s needs, parents who are unable to pay for school fees see their children suffering with the embarrassment of not receiving their reports. Money has become such an important measurement of our success or failure that many breadwinners are feeling like they have failed their families and this is just adding stress to the relationships.

Taking control

Although this research paints a very negative picture, there are some extremely positive behavioural changes taking place. In response to their fear and desperation, people are recognising the need for budgeting and planning (click here to learn how to budget).

Many respondents said that they were taking control of circumstances and being more disciplined. They are talking about their finances more with their family and their children are learning about budgeting.

Respondents said that they are thinking more about how they spend money and on what. "I go shopping with a specific amount of cash and do not add up what it costs — when I get to the till I look at the sub-total until I reach my limit and then tell them to take the rest back," said one respondent.

This need to take control of family expenses has created the desire for people to educate themselves to be able to make informed decisions, especially financial decisions. People who are taking control have a sense of empowerment.

Respondents said they were learning how to save on bank charges (click here to learn how to save on bank charges or here to learn which bank is the cheapest in South Africa), electricity (read 'Bright as button', 'Keep it fresh for less', 'Heat water, not the sky!' and 'Efficiency myths, busted!') and acting on specials and promotions (click here to learn about things you shouldn’t pay for, but probably do).

People are spending more time entertaining family and friends at home rather than eating out and DVDs have replaced outings to the movies.

(Click here for the latest articles on making ends meet.)

Article continues on page two...

Taxation upon emigration Emigrating? How much money you may take, the tax implications and where to find more info...

Small bank rolling in it This small bank announced huge profits and a gain of 480 000 new clients on Tuesday...

SA's cheapest bank Which bank has the lowest bank charges? Research by ThinkMoney indicates a clear-cut winner.