How are my mental health and money related?

Your mental health and personal finances are deeply intertwined, each influencing and impacting the other in profound ways.

Here are some of the ways your mental well-being can affect your financial health, and vice versa. Plus, three top tips to help you foster a healthier relationship between your mind and your money. Everyone needs to be able to manage their money; what small steps can you take to improve your financial confidence?

How finances can affect mental health

Emotional spending and financial stress

Doing some shopping to feel better, or so-called ‘retail therapy’, is a common coping mechanism for dealing with stress, anxiety, or low mood.

However, while it might provide temporary relief and a quick serotonin hit, it can add financial stress in the long run, which in turn can make existing mental health issues worse or even lead to new ones.

The constant worry about money, debt, or struggling to make ends meet can take a significant toll on your well-being.

Financial education and mental empowerment

A lack of financial knowledge can leave a person feeling overwhelmed, confused, or even helpless when it comes to managing their finances. You might feel like you don’t know where to start. This can contribute to feelings of anxiety about money-related decisions.

On the flip side, gaining financial knowledge and skills can not only improve your financial well-being but also boost your confidence and sense of control over your life.

💡Both can be improved by seeking support

It’s okay to not have all the answers or to struggle with your mental health or finances. However, suffering in silence can make matters worse.

In fact, it’s best to address these things sooner than later – so reach out for support as soon as you’re aware that you’re struggling, even if it’s just a little.

Talk to a trusted friend or family member, seek professional help from a therapist or financial helpline, or join a support group.

If you’re struggling with your mental health, there are plenty of free helplines and support out there, such as Samaritans and Mind.

Reaching out can provide you with the guidance, understanding, and encouragement you need to overcome challenges and build resilience.

Three top tips to take care of yourself

Practice mindful spending

Before making a purchase, pause and reflect on how you’re feeling in that moment. Ask yourself if it’s a need or a want? Are you buying out of necessity or in response to an emotion? Being aware of your emotions can help you reduce impulsive purchases and better manage your finances.

Educate yourself

Take the time to educate yourself about personal finance. There are plenty of resources available, from books and online courses to workshops and podcasts. The more informed you are, the better equipped you’ll be to make sound financial decisions and protect your mental health. A little goes a long way, start small and find a trusted source that works for you.

Prioritise self-care and connection

Make self-care a priority in your life. Practice activities that promote mental well-being, such as exercise, meditation, or whatever else helps you feel refreshed and peaceful. Nurture strong social connections with friends, family, or support networks, and don’t be afraid to lean on them when times get tough. Remember, you’re not alone, and there is strength in seeking help and support.

Summary

Whether we like it or not, the link between mental health and personal finances is undeniable.

By recognising this connection and taking proactive steps to nurture both aspects of your life, you can cultivate a healthier relationship with your mind and your money.

Remember, small changes can make a big difference. So start working towards greater well-being and financial stability today!

You can also visit Mental Health UK’s website to find out more about how our money and mental health are linked. Their dedicated Mental Health & Money Advice service help thousands of people to better understand and manage their financial and mental wellbeing.