Money and Your Emotional Wellbeing
Many people are dealing with financial anxiety about their finances or the size of their bank accounts. After all, money and mental health are inherently connected. A recent American Psychological Association survey, for example, found that 72% of U.S. residents stressed about money the previous month.
With that said, here’s what you should know about money and your emotional wellbeing.
Statistics
There is ample research linking mental health and money issues. In a 2020 survey, for example, struggles with finances were the main source of respondents’ stress. A 2019 Everyday Health survey produced similar results. Further, 65% of women experience anxiety about their finances, compared to 54% of men. And 46% of people who have debt also have a mental health diagnosis.
The Mental Health Impact
It’s been established that money concerns can cause a great deal of stress, which can exacerbate existing mental health conditions. They can also contribute to the diminishing of a person’s mood, emotional health, self-esteem, and confidence.
Money worries can also have a marked impact on how people handle their finances.
Specifically:
- Mental health issues can contribute to money mismanagement.
- Mental health issues can render it more challenging to pay bills, control spending, or budget.
- Some mental health conditions can manifest themselves in impulsive behaviors, such as reckless spending.
Gauging Your Spending Habits
To improve your emotional wellbeing, it’s important to take a hard look at the root of your issues. For many, the overarching problem is excessive spending. To help you get to the bottom of things, here are some questions to consider about your relationship with money:
- How does buying something make you feel?
- How do you feel when you must make a big purchase?
- Do you experience times in which you’re more, or less, likely to spend money?
- Are you comfortable discussing money?
- How frequently do you check your bank account, and when you do, how do you feel?
- Are there aspects of dealing with money – opening a bill or paying rent, say – that worsens your mental health?
Ways to Mitigate the Impact of Finances on Your Emotional Wellbeing
- Establish and stick to a budget. If you’re feeling financially scattered and out of control, it may be because you either don’t have a budget, or you do but don’t stick to it. Consider behavioral changes that will help you follow your budget.
- Make one financial decision at a time. To avoid being overwhelmed, give yourself permission to make one financial call at a time. If other decisions can wait a bit, let them.
- Control your spending. Pay close attention to where your money is going, and when. Finding out where you can cut back can be empowering.
- Identify financial stressors. It’s important to pinpoint what causes your stress. For example, is it getting a bill in the mail? Is it having to use a credit card? Getting to know your stressors is an initial step toward eliminating them.
- Get in touch with your emotions. Similarly, you should be aware of what emotions arise when it comes to finances and money. Putting your thoughts down in a journal may help you come to terms with your emotions.
- Establish healthy coping techniques. If you know you get stressed whenever you must pay bills, first take a walk, or meditate, or journal.
- Get a coach. To stay mentally fit, you might want to work one-on-one with a financial coach to help you establish a financial wellness plan.
To reduce financial stress and improve your emotional wellbeing, consider speaking with a physician or mental health professional. If a growing pile of debt is your main concern, you might also want to pursue a strategy called debt settlement.
