Managing your finances is an important part of adult life. We all have bills to pay, financial goals to achieve, and unexpected expenses to deal with. However, handling your finances can have a significant impact on your mental health. Let’s explore the ways in which your financial situation can affect your mental health and review some tips for managing your finances to improve your well-being.
Financial Stress and Anxiety
One of the most obvious ways that handling your finances can affect your mental health is through stress and anxiety. Financial concerns can keep you up at night, cause arguments with loved ones, and lead to feelings of helplessness. It’s not uncommon to worry about paying bills, having enough in savings, or managing debt. A 2021 survey on more than 19,000 adults in the U.S. found 60% of respondents indicated feeling anxious when thinking about their personal finances, while 50% of respondents indicated feeling stressed when discussing their finances (Pierce et al., 2021).
Financial Guilt
If you’re struggling to manage your finances, you may feel ashamed and guilty about your situation. You may feel like you should be handling your money better, or that you’re not living up to your personal expectations. These negative feelings can impact your self-esteem and confidence which may make it harder to seek help or make positive changes. But you are not alone, many people experience these feelings when dealing with their finances. Be aware of your situation and know it is okay to ask for help.
Tips for Managing Your Finances and Improving Your Mental Health
If you’re struggling with your finances, it’s important to take steps to improve your situation. Here are some tips for managing your money and improving your mental health:
- Review your spending: While many of us tend to avoid looking at how much we really are spending, according to experts, coming to terms with the reality of our spending habits will cause less stress than avoidance (Payton, 2022). It’s a big step to take but a step in the right direction. When we start to avoid our financial situation it doesn’t stop us from thinking about it, instead we create even worse scenarios in our minds. Once you can accept your financial situation, you’re able to work on improving it while simultaneously improving your mental health.
- Seek help if you need it: If you’re struggling to manage your finances, there are resources available to help you. You can reach out to a financial advisor that fits your personal needs that will help you navigate your financial situation. A financial advisor can help you to manage your money and plan for the future.
- Practice self-care: Taking care of your mental and physical health can help you cope with financial stress. Practice relaxation techniques like deep breathing or meditation, exercise regularly and eat a healthy diet. Make time for hobbies and activities that you enjoy and spend time with loved ones.
In conclusion, handling your finances can have a significant impact on your mental health. Financial stress, shame, and guilt can all contribute to mental health problems. However, taking steps to manage your money and seek support when you need it, can improve your financial situation and your overall well-being.
Sarah Shields
All written content is for information purposes only. Opinions expressed herein are solely those of Zenith, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.
