Approximately 20% of American adults are living with a mental illness. Mental health pertains to one’s emotional, psychological, and social well-being and plays a role in how we think, feel, and act. It guides us in managing stress, maintaining relationships, and decision-making processes. Millions of Americans are affected by mental illness each year.
Studies also indicate that the leading cause of stress is financial uncertainty, which can affect more than just your bank balance. This economic stress can lead to heightened psychological stress, reduced self-esteem, strained relationships, and difficulties in staying focused at work. Hence, poor mental health can exacerbate financial stresses to create a vicious cycle.
HOW MENTAL HEALTH AFFECTS YOUR FINANCES
Below are four ways that mental health affects your financial status.
Poor mental health can lead to mismanagement of finances. This can include difficulty controlling spending, paying bills timely, or budgeting correctly.
Impulsive actions can be the result of certain mental health conditions.
Feelings of worthlessness due to depression can hinder your ability to seize income opportunities.
Severe mental health issues can render you unable to work or access health insurance – affecting both your income and your ability to get the help you need.
Mental and financial health can significantly impact one another. Here are some suggestions to help improve this relationship:
START WITH A BUDGET
Budgeting is a simple and effective way to reduce financial stress. This is especially critical if you’re facing financial pressure due to lay-offs or reduced working hours. There are various budgeting methods to fit diverse financial situations. Take the time to find the one that suits you best.
DEVELOP A DEBT-PAYOFF STRATEGY
Continuously making debt payments without seeing a significant reduction can be stressful. Start by identifying your debts and choose an appropriate payoff strategy. Remember; while formulating a plan can be straightforward, the real challenge lies in its diligent implementation. However, being debt-free can provide a sense of security and promote better mental health.
START AN EMERGENCY SAVINGS ACCOUNT
An emergency fund is essential to ride out difficult times without intensifying financial stress. Review your budget to identify potential saving opportunities or explore additional income generation avenues.
WORK ON YOUR CREDIT
A respectable credit score can ease your borrowing needs during emergencies. Good credit can decrease borrowing costs if your emergency fund isn’t fully materialized.
PRACTICE SELF-CARE
Self-care is a valuable tool to combat symptoms of poor mental health. By dedicating time to activities you enjoy, you can be in a better position to make critical financial decisions. The beauty of self-care is that it doesn’t have to be a costly practice.
ADDRESS YOUR MENTAL HEALTH
Don’t ignore issues related to mental health. If you notice changes in your sleep, eating habits, or energy levels, it’s crucial to seek professional help.
CONSULT A PROFESSIONAL
Managing your finances on your own can be daunting. A credit counselor can guide you in making financial decisions and managing your debts more effectively.
IN CONCLUSION
Financial instability can intensify mental health issues. You don’t need to face these issues alone – professional help can make a difference. Start by giving yourself some leeway and take small steps towards achieving financial stability. This can involve budgeting, finding ways to increase income, adhering to a debt reduction plan, practicing self-care, addressing mental health issues and saving for the future. Your journey may start with small steps, but remember, each step gets you closer to your goal.
