For many, mentioning the word “money” sparks stress and anxiety. In fact, a Bankrate study of nearly 2,500 U.S. adults found that 70% of respondents feel stressed about their finances. Here’s why a financially responsible life can help maintain your mental health.
How do Financial Struggles Impact Mental Health?
There are lots of ways money troubles can influence mental health:
- Stress and anxiety. Financial struggles are one of the leading causes of stress and anxiety. Feeling stressed and anxious can also impact physical health, leading to insomnia, headaches, weight gain/loss, and other physical symptoms.
- Depression. Money struggles can contribute to depression by creating a sense of despair and being out of control.
- Strained Relationships. Money issues can strain many relationships, including those between partners, parents and children, siblings, friends, and more.
How Does Financial Stability Impact Mental Health?
Financial stability can improve one’s state of mind by creating:
- A sense of peace. A stable financial reality can provide security and peace of mind, reducing stress and anxiety.
- Increased opportunities. Living a financially responsible life can provide a person with the opportunities to pursue their interests and passions.
- Improved relationships. Financial stability can also improve relationships, reducing stress and tension associated with financial struggles.
Debt and Mental Health
Research shows that people in debt are more likely to experience mental health problems like anxiety, depression, and even suicidal thoughts. If you are struggling to escape from debt, consider consolidating with a personal/unsecured loan so you only have one low-interest (and maybe lower) debt payment to make each month.
Managing Your Finances for Improved Mental Health
Here are ways you can improve your financial and mental health:
- Create a budget and stick to it.
- Seek support from a financial counselor or therapist.
- Practice stress-reducing activities like meditation, yoga, or exercise.
- Set realistic financial goals and work toward them.
- Focus on personal achievements unrelated to your financial worth.
By managing your finances and seeking help when needed, you can improve your mental health and overall well-being.