Money and Mental Health

Saving & Budgeting
Woman looking at mobile phone with stressed look

 

For many, the mere mention of the word “money” sparks feelings of stressed anxiety. At the same time, living a financially responsible life can help one maintain optimal mental health. 

How do financial struggles impact mental health?

There are lots of ways money troubles can influence our mental health:

  • Stress and anxiety. Financial struggles are one of the leading causes of stress and anxiety. Feeling stressed and anxious can also impact a person’s physical health, often leading to insomnia, headaches, weight gain/loss and other physical symptoms.
  • Depression. Money struggles can also lead to depression, which can cause a person to lose interest in activities they once enjoyed and affect their ability to function in daily life.
  • Strained relationships. Money issues can put a strain on many relationships, including those between partners, parents and children, siblings, friends and more.

How does financial stability impact mental health?

Now, let’s explore how financial stability can impact one’s mental health:

  • Peace of mind. A stable financial reality can provide a sense of security and peace of mind, reducing personal 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 who are 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 your debt 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.

Related Resources

  • man holding phone with credit score displayed
    Borrowing

    Credit Reports & FICO® Scores

    Your credit reports can help you understand how paying off or assuming debt influences your FICO® Score, and what you can do to maintain a solid rating.
    Read More
  • Woman sitting at table managing finances with laptop and mobile device
    Saving & Budgeting

    Why You Need to Be Financially Fit

    Learn how you can become financially fit and overcome common barriers to achieve financial wellness.
    Read More
  • Woman carrying many different shopping bags
    Saving & Budgeting

    Am I a Shopaholic?

    How can you tell if you have a real addiction or you’re just a recreational (albeit, dedicated) shopper? Here’s how to tell if you’re a shopaholic and steps to take to curb your behavior.
    Read More