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How Does Financial Well-being Affect Your Mental Health?

How Does Financial Well-being Affect Your Mental Health?

Your finances play a large role in your mental health and how you feel overall. Too much financial stress can weigh on your mind and affect how you feel. You might not even realize that’s what is causing your anguish either.

It takes some soul searching and time to understand why you feel the way you do. But the good news is that there are ways to solve your financial woes so that you can feel better mentally and enjoy life with less stress.

Understanding Financial Well-being

Financial well-being looks different for everyone, but in general, it means not having any debt or having your debt under control, having enough money saved for the future, and having an overall sense of financial peace.

A person with financial well-being is able to pay his/her bills on time, has money to cover emergencies, and has money saved for the future. Most people at ease financially don’t have excessive debts and they have a plan to get out of any debt they have.

There isn’t a right or wrong way to achieve financial well-being and what works for one person, may not work for another, but that’s okay. As long as you know what makes you feel good financially, you’re on the right path.

Symptoms that your Mental Health Might be Suffering from your Financial Well-being

Sometimes it’s not quite obvious that your mental health is suffering because of your finances. Here are some symptoms that you might experience.

  • Inability to sleep because you’re constantly thinking about money, your debt, and what you can do to fix things
  • Anxiety because of the stress that money causes
  • Depression because of your current financial situation
  • Chronic headaches because of the stress money causes
  • Poor lifestyle choices to deal with the stress, such as smoking, drinking, or overeating

5 Ways your Finances Affect your Mental Health

5 Ways your Finances Affect your Mental Health

While everyone deals with their finances differently, here are some ways your finances may affect your mental health.

Anxiety May Arise when Getting Bills 

If you don’t have enough money to make ends meet, getting bills in the mail, emails, or phone calls from creditors can cause you to panic. Not knowing how you’ll satisfy your debts can feel overwhelming and cause you to feel uncomfortable.

Worrying about Money May Make it Hard to Sleep

If you’re constantly worried about money, getting enough sleep may be hard. Thinking about how you’ll make ends meet or the consequences of your unpaid debt can make it impossible to close your eyes and go to sleep.

Even if you do sleep, it may not be good sleep because you’re constantly worrying and wondering what you should do next.

You Might Feel Isolated

If you have money problems, you may not be able to have the social life your family and friends have, which can make you feel isolated. Isolation can cause feelings of depression or anxiety. Not being able to tell your loved ones that you can’t do what they’re doing and/or suggesting something you can afford can be embarrassing so you might choose to do nothing and deal with the feelings inside.

Spending Money may Cause Stress

If you don’t know how to budget or you know you have a lot of outstanding debt already, spending money may cause you to panic. You might wonder if you can spend the money and even if you budget right and know you can, it may still leave you with feelings of unease.

You might not enjoy shopping even if it’s for fun because you’re worried about every dollar that you spend.

Asking for Support may Cause Embarrassment

If you’re struggling to find a debt solution, you may feel embarrassed about it and not want to share it with anyone. Thinking about telling friends or family about your issues and asking them for help or even suggestions can cause anxiety. 

Some people further isolate themselves so they don’t have to face anyone. They assume it’s written all over their face so they avoid contact with anyone, which can cause depression too.

5 Ways to Fix your Financial Well-being to Improve your Mental Health

5 Ways to Fix your Financial Well-being to Improve your Mental Health

Now that you know how your financial well-being can affect your mental health, here are 5 ways to improve it.

Revisit your Budget

If you’re trying to get rid of your outstanding debt, revisit your budget and see where you can cut back. Are there expenses you can cut out and instead save the money to pay your debts down? You might be surprised to see how much money you can save with this step.

Save an Emergency Fund

No one likes facing an emergency without any money to cover it. As often as you can, contribute to your emergency fund so if and when an emergency occurs, you have the money set aside to take care of it.

Leave Room for Spending

No one should feel guilty about spending all the time. If you have a budget and know how much you can spend, it’s a lot easier to have some fun and do a little retail therapy, knowing you aren’t going over budget.

Pay Attention to When you Spend Money

If you spend money to make yourself feel better or you don’t even know when you spend money, track it. Write down not only how much money you spend, but also how you’re feeling to see if you are overspending just to make yourself feel better.

Get Support

Know what you can and can’t do when it comes to your finances and delegate the rest. If paying bills stresses you out, ask a trusted friend, or a relative to help you. If collectors are calling you and causing you anxiety, speak with a credit counsellor, they will not only discuss how to stop the collection calls with a debt solution to fit your budget but also how to help you to eliminate your debt, and get the financial freedom you deserve.

Final Thoughts

Your financial well-being plays an important role in your overall mental health. Getting your finances in order can help you feel better mentally, but it doesn’t happen overnight for anyone. If you wonder how to get rid of your debt or if there is any way to get back on your feet financially, contact the credit counselors at EmpireOne Credit. Our professionals will walk you through your options and help you feel better financially and mentally once again.

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