Money issues can have a negative affect on your mental health, and, oh boy, do I know that... Even years later you can have trauma from the years of mental stress of poverty and other extreme money worries. But even if less extreme, it can still take a toll on your mental health. Here's more about that and how you can help improve things.
If there’s one thing that can affect mental health more than almost anything else, it’s money. Running out of it can take its toll on your mind (especially if you’re penniless!)
In this post, we take a look at some of the ways money can affect your mental health. Then, we explore some of the techniques you can use to improve your financial situation.
Please note that none of what follows should be construed as financial advice. Furthermore, some people may still struggle with mental health conditions related to money, even if they become wealthy. Simply having more cash in your account isn’t always the answer.
How Money Woes Can Harm Mental Health
So, with those caveats out of the way, how might money issues be affecting you?
Financial Strain
One significant concern is financial strain. Constantly worrying about money can wear you down over time and cause you to feel demotivated. It doesn’t seem to matter what you do, you’re always struggling with your finances.
Financial strain can take various forms. For some people, it’s the worry that they can’t pay their bills when prices go up. Even an extra 10% on top of an electricity charge can cause difficulties.
For others, it is debt. Taking out loans becomes increasingly expensive to the point where it is no longer affordable.
Financial strain can also show up in relationships. You might be okay with having less money, but your partner might not be, leading to arguments.
Sleepless Nights
When money problems start to take their toll, it can also lead to sleepless nights. Worrying about finances can prevent you from enjoying rest by activating your brain’s fear centers. Eventually, this can lead to insomnia if it goes on for too long.
Furthermore, lack of sleep can harm your ability to get out of your adverse financial situation. You can’t think properly or work harder to solve the problem, so it can sometimes get worse.
Strained Relationships
Finally, as mentioned before, money problems can cause strained relationships. It can be hard for other people to understand where you’re coming from financially, particularly romantic partners.
Not having enough money can also affect how you interact with friends and family. You might have to borrow money from them all the time or be unable to attend social occasions.
How To Fix Your Money Problems
Fortunately, there are some ways to fix your money problems and protect your mental health. Even if you’re going through a challenging time, there are several things you can do.
Cut Out Anything Non-Essential
The first step when encountering money issues is to cut out anything non-essential. Does your dog require a weekly grooming service or can you do this yourself?
Think about the things you can live without and then cut them out of your life for peace of mind. Focus on spending money where it matters most – your happiness.
Take Control Of Your Spending
At the same time, you'll want to take control of your spending (if it's a concern). Reducing unnecessary expenses and focusing on essentials can quickly improve your financial situation.
For example, if you're making frequent impulse purchases, ask yourself if you truly need them. Do you really need that new coffee maker, or can you wait?
Entertainment can also be a big budget drain. Track your spending on things like going out to eat, streaming services, or hobbies. You might be surprised by how much it adds up. Consider cheaper alternatives or cut back on the frequency.
Search For Hidden Money
Another approach is to look for hidden money. Sometimes you can release additional funds without harming your long-term prospects.
One option is to go online and look for more details on releasing money from annuities. Instead of waiting for income to come through (leaving you with less than you might need), you release the entire sum upfront, allowing you to pay off debts and begin investing the remainder effectively.
Another option is to take money from your home if it has recently appreciated in value. Remortgaging can free the additional equity, helping you plow it back into other projects.
Seek Help
Finally, don’t take the view that you have to deal with money problems alone. Seeking help is an excellent way to overcome difficulties and challenges.
Lots of people can help you, whether you want to manage debt or reduce spending. Financial professionals can even tailor advice to your situation, giving you a roadmap for how you could proceed.