The link between money and mental health

May 27, 2021

In recent years, the conversation around mental health has increased significantly, making it far easier for individuals to seek out the help they need.

Poor mental health can be anything from feelings of sadness, anxiety, stress, to not being able to cope daily and can be caused by several different factors in our lives – one of which being money worries.  

Through several studies, it has become increasingly evident that there is a strong link between our mental health and our money, and it operates as a two-way street!

On one side you have poor mental health making it difficult to earn and manage money, leading to financial difficulties. And on the other side, you have financial difficulties causing you to lose sleep and experience feelings such as overwhelm, leading to poor mental health.

Managing your own finances can be overwhelming, and here are some below steps to help improve your financial well-being:

  • Focus on creating a budget to ensure you have enough money to cover your bills; understanding your financial situation can help alleviate feelings of worry
  • Automate payments to clear debt, pay bills, and save money to make it easier to manage your monthly outgoings
  • Remove your credit card details from your phone and use cash instead of card if you are worried about overspending
  • Focus on your relationship with money and try to use positive language to cultivate a good money mindset
  • Talk with someone your trust about your financial situation, and ask for help managing your money if you feel you need support

Research from the Money and Mental Health Policy Institute show that over 1.5 million people across the UK are experiencing both problem debt and mental health problems.

How can your mental health impact your finances?

  • You may be unable to work which affects your ability to earn an income and pay for necessities such as food and shelter
  • Feelings of loneliness or depression can make it difficult for you to reach out and ask for help
  • You may be more vulnerable and susceptible to emotional triggers causing you to make impulse purchases and spend money you may not have
  • You may lack confidence or motivation to handle your finances; be unable to budget, or understand your cash flow, or make important financial decisions

All the above factors can lead you into problem debt and other financial difficulties, of which can in turn make your mental health worse especially if it affects your ability to pay for necessities such as food or shelter. If you currently feel that you are struggling to cope with financial pressure or the stress of your financial situation and have felt like this for some time, please do talk to someone about your concerns. You can get in contact with us on 0141 848 6353 or support@amifinancialsolutions.com

Blog by Laura Moore. Check out more of her blogs at https://www.lauraannmoore.co.uk/