Mental Health and Money

Your Mental Health and Money are Intricately Connected, Let Us Understand How!

Your Finances Determine Your Success, You appear unsuccessful, if you are financially poor -Shiva

Your Mental Health issues can Directly Impact Your Finances, and Converse is also true – Your Financial conditions can impact your Mental Health. Do you agree?

How do your friends and family treat you when you are broke?

How anxious would you be at times when your money savings reducing to nill or negative?

Anxiety about personal finance can disproportionately impact your mental health. There exists an intricate relationship between your mental health and money. It is quite complex though.

Lack of financial freedom can induce unnecessary insecurity, anger – with overshot levels of short-temper, jealousy – about other’s financial growth, and in most cases blame yourself and feel guilty of the circumstances and even regret it, driving yourself to unmanageable circumstances. Not Up To It!

You may have noticed how money and mental health together have impacted you; Can even influence your physical health, predominantly disrupting your behaviours and decision-making abilities.

I have fallen victim to the impacts of financial stress and well-being. I was working in an unsatisfying, underpaid job, just to cover up my EMI and monthly bills – ruining my personal life, and terribly hampering my health conditions. With the need for a laptop, but lack of finances, I ended up falling trap to monthly loan repayments.

Questions to ask yourself to recognise your spending patterns

How do you feel after your shopping?
Psychological Reasons for Over Spending.
How would you feel when you have to make an expensive purchase and you are left with little or no balance in your savings account?
Can you identify the expenses to come?
Are there moments where you are less likely to spend?
How comfortable do you feel when you have to discuss about money status?
How often do you check your bank balance and how does it make you feel?
What aspects of recovering with money and mental health make things worse? For instance: (when you open a bill from your inbox which needs to be paid, monthly recurring expenses including monthly rent, EMIs, Bill payments and other recursive expenses).

How many questions you could relate to?

This isn’t any shame every one of us has experienced at some point in life.

Now, for the most important section, let’s understand How money can impact your mental health

Just like how your mental health issues can impact your finances, conversely, your finances can also impact your mental health. It’s a symbiotic, cyclic relationship.

Here I have identified four ways that money can impact your mental health:

Poor financial conditions can lead to increased mental health issues, such as money anxiety disorder and depression
Those living with debt are more likely to be highly anxious, depressed or even suicidal (case studies)
Problems with money and debt lead to increased mental stress
People with such extreme stress are also sufferers of physical and emotional health upset.

Remedies to Reduce the impact of financial stress on Your Mental Health

People with hustling and bustling paced lifestyle, are highly vulnerable to mental health upset lead to financial instability. If you are struggling with your mental health awareness and money then relax you are not alone.

It is humanly possible to build a strong mental fitness plan to help you gain focus and control in your life and overcome your struggles.

Here are few tips to help you reduce the impact of financial stress on your mental health:

Make one decision at a time:

Dealing with Money can be overwhelming. While making multiple decisions at once, can lead to a knee-jerk reaction. It is wise to focus on one financial decision at a time to avoid making hasty decisions.

Create and stick to a budget:

It can be hard to set goals if you are uncertain of the start. Commit an audit of your finances. Then, set a budget. Budget Once set contemplate on your behavioural changes that can help you adhere to the budget..

Monitor your spending:

This is a hard one – and I have struggled with it as well. It is crucial to know where your money is going.

For Instance:

I didn’t realise that I was unaware of the expenses, I had to combe through the account statement to understand it and keep a check on my spending habits. Lean on your instinctive decision-making capabilities to make good choices about your expenses.

Pinpoint your financial stressors. Do you get upset when the month ends or during the beginning of the month when you have to pay your bills and rent, identify your stressors.
Isolate the emotions you feel that are connected to money. Similar to getting to know your stressors, get connected to your emotions and let them bubble up, while you can isolate the ones that are related to your emotions and stress.
Include healthy rejuvenating mechanisms in your mental fitness plan. Your mental fitness must be a holistic reflection of how you take care of yourself. And there are numerous ways to destress yourself and cope with emotions. For Instance:

Every time you pay your bills there are higher possibilities of getting overwhelmed with the processes. Practising Inner work for 10 mins or more, before and after you have to look at your bills:

You can go for a walk, read journals or books, meditate to understand how you are feeling, and also plan ways to keep track of your mental fitness practices which can help you recentre yourself.

Seek support of a Mentor: A mentor is a personal Guru for your mental health and can even guide you to stay mentally fit, by working with you one-on-one, and also build a catered financial wellness plan which works for you.
Talk to a trained mental health professional. If you are living with a mental health condition, Consult trained Psychiatrists or Counsellors. You may have felt the symptoms for the first time or may have ignored the ill effects of your mental and financial situation. Regardless Seek help and support.

How to Start Getting a hold of your financial health?

Facing, Financial Issues and financial difficulties aren’t uncommon. Now we understand the intricate relationship between money and mental health. Poor mental health often leads to increased financial stress and Vice versa – it is a vicious cycle that drives us into financial difficulties and ultimately drives to poor mental well-being.

But you are not alone. First, get some breathing space. Your financial dilemma is valid – You don’t have to tug-of-war all by yourself. You can take charge of your finances with the right support and guidance. There are a plethora of money management services but at times, you need a Guru or a mentor to help you guide you and point you in the right direction.

With Progress Path, Mentors or a Guru can work with you one-on-one, and Guide you – to build your mental fitness plan. Take charge of your financial difficulties, and worries. With Progress Path You can live with more purpose, progress to clarity, passion and ultimately live a life of your craving – set yourself free from your financial worries. Fathom Your Freedom, don’t live it be caught in the vicious circle in the clutches of the society’s living strands – Benevolent One.

The mental health and Money cycle (and 8 tips to help break it)

The American Psychological Association recently ran a survey. As of March 2022, 72% of Americans report stressing about money at least some time in the prior month.

Research has shown that finance is the number one cause of stress. According to a FINRA report, the mental health impacts of money aren’t equitable experienced Anxiety about personal finance disproportionately impacted certain communities. Like women, and people from communities of colour.

65% of women feel anxious about their finances compared to 54% of men. Women, young adults, those who are low-income, and those who are unmarried or unemployed are most financially anxious.

There’s a big problem when it comes to mental health and money. It’s a complex relationship, one with many contributing factors that might feel totally out of your control. You might not notice how money and mental health have impacted you yet. But it could be influencing your decisions, your physical health, and even your behaviours.

I’ve personally experienced the mental health impact of financial stress and well-being. At one point in my life, I was working three jobs to cover my rent and expenses – and it still wasn’t enough. I found myself relying on my credit card more than I wanted. Now, I’m on my journey to financial wellness. It’s taken years of learning and behavioural changes to get here but it’s possible.

If your mental health is negatively impacted by money, you’re not alone. You’ll learn how mental health can impact your decisions and relationships with money. But you’ll also learn ways to reduce the impact of money on your mental health.

How Does Money Affect Mental Health?

So, how does money affect mental health? In more ways than you may think. At its heart, money can cause an incredible amount of stress. When humans experience stress, the mental health impacts ripple from there.

Stress and worry about money impact those living with depression and anxiety. Stress about money can exacerbate existing mental health conditions. But it can also contribute to developing other mental health conditions, from your mood to your emotional health. Financial stress can negatively impact self-esteem and confidence.

Money and Mental Health Statistics

Here’s what we know from research and science. The Money and Mental Health Policy Institute have conducted studies on the relationship between mental health and finances.

Mental Health and Money Statistics

46% of people with debt also have a mental health diagnosis
86% of people with mental health issues and debt say their debt makes their mental health issues worse
Those with debt are three times more likely to contemplate suicide (due to that debt)
72% of Americans report stressing about money (APA)
Financial stress is the number one stressor in the U.S. (Credit Wise Survey)

How does money affect human behaviour?

It’s surprising the impact money can have on human behaviour. But according to researchers, money has a significant influence on how we think, act, and behave.

Science tells us that money (or lack thereof) shapes our sense of morality. One study found that luxury cars were four times less likely than less expensive vehicles to allow presidents to cross at crosswalks. Luxury vehicles were also more likely to cut off other drivers, a sign of wealth and entitlement.

Multiple studies show a connection between money and empathy. Some research found that people of lower economic status were better at reading facial expressions than wealthier people. This is an important marker of empathy.

It’s also shown that wealth is linked to addiction. Money itself doesn’t cause substance abuse. However, studies have found that wealthy children are more vulnerable to substance abuse issues.

When we think about human behaviour, money plays a big role. It shapes how we think, feel, and act – for better or for worse.

How mental health can impact your finances?

Poor Mental Health can contribute to poor money management

Dealing with money issues and debt negatively impacts mental health

Mental health can contribute to You mismanagement of money
Mental health conditions can make it harder to control your spending, pay bills, or budget appropriately
Certain mental health conditions can sometimes result in impulsive behaviour

If you’re experiencing mental health issues, it’s important to factor financial wellness into your well-being plans. Talk with a trained mental health professional or doctor about ways can seek support.

Understanding your relationship with money

It took me a while to understand my relationship with money.

To this day, I still don’t fill up my gas tank all the way, even though my bank account can afford a full tank of gas. It’s a habit and limiting belief that I’ve carried into adulthood from my childhood. My mom always used to keep $5 or $10 in the glove box for gas. Somehow, I internalised that I only put small amounts of money into my gas tank at a time – just in case I needed money for something more important.

And while I know that I’m in a position where I can afford to fill up my gas tank, I still tend to only fill it around halfway. I never let the tank click full.

Do you understand your relationship with money? There are lots of factors that can influence your relationship with money. From your socioeconomic background to debt to even how your parents talk about finances, it’s a tough nut to crack.

But it starts with being open and honest with yourself about where you’re at. Without that level of vulnerability to recognise your current state, you won’t be able to make any positive changes.

Questions to ask yourself to recognise spending patterns

How do you feel when you make a purchase?
What feelings do you experience when you need to make a big purchase?
Are there moments in time where you’re less likely to spend money?
How comfortable do you feel talking about money?
How often do you check your bank account? How does it make you feel?
What aspects of coping with money and mental health make things worse? (i.e. opening a bill in the mail, online banking, paying rent every month)

How money can impact your mental health?

Just like mental health can impact your finances, your finances can also impact your mental health. Here are four ways money can impact your mental health:

Problems with money can lead to increased mental health problems, specifically depression and anxiety
Those living with debt are more likely to be depressed, anxious, or consider suicide (data cited above)
Problems with money and debt lead to increased stress
When people are stressed, their physical and emotional health suffers

8 tips to reduce the impact of financial stress on your mental health

If you’re struggling with your mental health and money, you’re not alone. It’s possible to build a strong mental fitness plan to help gain focus and control in your life. Here are eight tips to help reduce the impact of financial stress on your mental health.

Make one decision at a time. Money can be overwhelming. When you’re faced with multiple decisions at once, it’s more likely you’ll have a knee-jerk reaction. Try to focus on one financial decision at a time.
Create (and stick to) a budget. It’s hard to set goals if you don’t know where you’re starting from. Do an audit of your finances. Then, create your budget. Once you’ve created your budget, try to think through behaviour changes that will help you stick to it.
Monitor your spending. This is a big one – and one that I’ve personally struggled with as well. It’s important to know where your money is going.

For example, I didn’t realise how much money I had spent on takeout food until I combed through my bank account. Pay close attention to your spending habits. Lean on your decision-making skills to make good choices about your spending.

Pinpoint your financial stressors. Do you get overwhelmed when you get a bill in the mail? Are you stressed at the end of the month, waiting for that next paycheck to make sure you can cover your upcoming rent? Whatever your stressors are, get to know them.
Recognise the emotions you feel related to money.

Similar to getting to know your stressors, get in touch with your emotions. Try to identify what emotions come up as it relates to finances and money. Sometimes, journaling about your emotions can help to pinpoint what you’re feeling.

3. Implement healthy coping mechanisms into your mental fitness plan. Your mental fitness should be a holistic reflection of how you take care of yourself. And there are lots of healthy ways you can cope with your emotions and stress.

For instance, let’s say you get overwhelmed every time you pay your bills. Can you practice Inner Work for 10 minutes before and after you have to look at your bills? Can you go for a walk, meditate, or journal about your feelings? Think about ways you can tack on small mental fitness practices to help re-centre yourself.

Seek the support of a coach. A coach is like your personal guide to staying mentally fit. By working one-on-one with your coach, you can build a catered financial wellness plan that works for you.
Talk to a trained mental health professional. If you’re living with a mental health condition, talk to a doctor or trained mental health professional.

You may be feeling symptoms of mental illness for the first time. Or maybe you’ve noticed your symptoms are worsening with the impact of your financial situation. Regardless, seek support.

Start getting a hold of your financial health and Mental Health articles

Financial issues and financial problems aren’t uncommon. We know that money problems and mental health are intimately linked. Poor mental health can lead to increased financial stress and vice versa. It’s a vicious cycle, one that typically results in financial difficulty and poor well-being.

But you’re not alone. first, get some breathing space. Your financial worries are valid – but you don’t have to combat them alone. You can take control of your finances with the right support. There are plenty of money helpers and money management services but sometimes, you just need a person to help guide you.

With BetterUp, you can work one-on-one with a coach to build a strong mental fitness plan. Take control of your money worries and mental health. With BetterUp, you can live with more purpose, clarity, and passion.