Want to improve your mental health?
Want to improve your mental health?
Fix your finances
Poor mental health means managing money is harder.
Worrying about money makes your mental health worse.
Mental health and money problems are often intricately linked.
Half (46%) of people in problem debt also have a mental health problem.
86% of respondents to a Money and Mental Health survey of nearly 5,500 people with experience of mental health problems said that their financial situation had made their mental health problems worse.
72% of respondents to Money and Mental Health’s survey said that their mental health problems had made their financial situation worse.
Mental health and finances are strongly linked. Experiencing a mental illness can add to financial stresses, and financial stresses can add to a mental illness.
Finances can bring security and peace of mind. Combined with leisure time and fun activities, it can have a positive effect on wellbeing. Being able to work and pay bills regularly can ease pressure, though not everyone is able to do that.
Mental health and financial woes are related. However, those who are well off are not all mentally well, and all those who are disadvantaged are not depressed or anxious. The way we view our financial situation is what impacts our mental health. Even someone who is regularly paying off their debts may have constant feelings of mental and emotional distress around personal finances.
Some signs that financial stress is affecting your mental wellbeing include: arguing with the people closest to you about money, having trouble sleeping, feeling angry or fearful, mood swings, tiredness, loss of appetite, and withdrawing from others. Addressing financial problems early on can reduce their impact on mental health.
Improving your financial literacy may be the surest way to keep away financial distress.
How does financial difficulty affect your mental health?
- Financial difficulties are a common cause of stress, and stigma around debt can mean that people struggle to ask for help and can become isolated. The impact on people’s mental health can be particularly severe if they resort to cutting back on essentials, such as heating and eating, or if creditors are aggressive or insensitive when collecting debts.
- Financial difficulty drastically reduces recovery rates for common mental health conditions. People with depression and problem debt are 4.2 times more likely to still have depression 18 months later, compared to people without financial difficulty.
- People in problem debt are three times as likely to have thought about suicide in the past year . Suicide is a complex phenomena and there are usually a range of social factors, life events and other circumstances that drive someone to think about it.
How does having a mental health problem affect your finances?
People experiencing mental health problems are less likely to be in paid employment , and more likely to be in low-paid employment . Only 43%of people
with mental health problems are in employment, compared to 74%of the general population and 65% of people with other health conditions. People with mental health problems are also overrepresented in high-turnover, low-pay, part-time or temporary work.
Mental health problems can shape how our minds work and how we behave, as well as our emotions. Common symptoms of mental health problems, such as increased impulsivity and memory problems, can make it harder to keep on top of financial management or to get a good deal in complex markets, increasing the likelihood of financial difficulty.
Many people with mental health problems report that their spending patterns and ability to make financial decisions changes significantly during periods of poor mental health. A Money and Mental Health survey of nearly 5,500 people with mental health problems found that, while unwell:
- 93% spent more than usual
- 92% found it harder to make financial decisions
- 74% put off paying bills
- 71% avoided dealing with creditors
- 56% took out a loan that they would not otherwise have taken out
Mental health problems can also make it harder to engage with essential services, such as banks and energy companies. People can struggle to understand bills and remember account details, which can lead to financial difficulties and distress. Four in ten (37%) people who have experienced mental health problems exhibit significant levels of anxiety when dealing with essential services, including symptoms such as a racing heart or trouble breathing.
How to Improve Your Mental Health
Fortunately, there are steps you can take to improve your mental health--which can also improve your financial health.
Taking care of your body with adequate sleep, exercise and nutrition, socializing with supportive people, engaging in leisure activities (even when you don’t feel like it) and setting aside time to take care of your needs (like managing your budget) can help improve your psychological well-being.
If you’re struggling to build mental strength, get professional help. You might start by talking to your doctor to rule out physical health issues that might be behind your symptoms. Then, you might try talking to a therapist who can help you identify concrete strategies for feeling better fast.
You may also seek the support of a financial advisor that can support you with getting your finances in order.