How Money Affects Mental Health: Financial Wellbeing on World Mental Health Day

Cartoon of a woman looking stressed and anxious about money, symbolising financial stress and its impact on mental health

As we recognise World Mental Health Day, it’s important to remember that mental health doesn’t exist in isolation. One of the most significant and often overlooked factors affecting our mental wellbeing is money. Whether it’s the stress of debt, the anxiety of managing expenses, or the emotional toll of financial instability, the relationship between money and mental health is profound.

In this article, we’ll explore the connection between money and mental health, offer advice on how to manage financial stress, and highlight sources of help for those struggling in the UK.

How Does Money Affect Mental Health?

Financial stress can lead to a variety of mental health challenges, such as anxiety, depression, and stress-related physical symptoms. Here’s how money and mental health are intertwined:

  • Debt and Anxiety: Constantly worrying about debts can cause significant anxiety, leading to sleepless nights, poor decision-making, and feelings of helplessness. The pressure of repaying loans, mortgages, or credit card balances can weigh heavily on an individual’s mental state.
  • Job Loss and Self-Worth: Losing a job or facing financial instability can deeply affect self-esteem and mental health. The fear of not being able to support yourself or your family creates immense emotional strain.
  • Budgeting and Overwhelm: For many, managing monthly expenses can feel overwhelming. The pressure to pay bills, rent, or mortgage while balancing daily living costs often leaves people feeling stretched thin.
  • Poverty and Mental Health: Living on a tight budget or below the poverty line creates daily stress, contributing to a continuous cycle of poor mental health. Financial instability can also limit access to mental health support, such as counselling or therapy.

What Can You Do to Manage Financial Stress?

If financial pressures are affecting your mental health, taking proactive steps can make a significant difference. Here’s how you can start:

  1. Create a Clear Budget A well-organised budget can be a game-changer. Start by listing all your sources of income and necessary expenses (rent, utilities, food, transport, etc.). Once you have a clear picture of your finances, it becomes easier to see where you can make adjustments or cutbacks.
  2. Talk to Someone Whether it’s a financial advisor, a trusted friend, or a family member, talking openly about money can lift the emotional burden. At Mather & Murray Financial, we encourage open, non-judgemental conversations about your financial situation. Getting advice from a professional can help you make informed decisions and regain control.
  3. Seek Professional Help If your financial situation is complex, such as dealing with debt, it’s essential to seek help. There are many organisations in the UK that offer free advice, such as StepChange and Citizens Advice, both of which provide debt management support, financial counselling, and practical tools for improving your financial situation.
  4. Build an Emergency Fund Having a financial buffer can reduce anxiety about unexpected expenses. Even saving a small amount regularly can make a difference over time and help you avoid relying on credit cards or loans in emergencies.
  5. Manage Debts Effectively If you’re struggling with debt, prioritise paying off high-interest loans first. Consider speaking to a debt charity or adviser for help with negotiating payment plans or debt consolidation. Charities such as National Debtline or MoneyHelper can offer personalised support.

What Are the Sources of Help for Financial and Mental Health Issues in the UK?

There are various resources in the UK that provide support for both financial and mental health issues:

  • StepChange Debt Charity: Offers free debt advice, debt management plans, and help with budgeting.
  • Citizens Advice: Provides guidance on managing debt, benefits, and legal issues, alongside practical financial advice.
  • Mind: This leading mental health charity offers support, information, and advice for those dealing with mental health issues, including how financial struggles can contribute to poor mental wellbeing.
  • Samaritans: Available 24/7, Samaritans provides emotional support for those feeling overwhelmed by financial or personal problems.
  • MoneyHelper: A government-backed service offering free and impartial money and pensions guidance.

Common Questions About Money and Mental Health

Q: Can financial stress lead to depression?
Yes, financial stress is a significant contributor to mental health problems like depression and anxiety. Worrying about money can trigger persistent negative thoughts, feelings of helplessness, and a lack of hope for the future, all of which can lead to depression.

Q: How can I reduce the mental strain caused by debt?
Debt can be mentally overwhelming, but tackling it head-on is crucial. Start by seeking free debt advice from services like StepChange or National Debtline. Creating a structured repayment plan can help you feel more in control and reduce anxiety.

Q: Can managing money improve my mental health?
Yes, taking control of your finances can reduce stress and improve your mental wellbeing. A clear budget, saving for emergencies, and managing debt are all steps that can alleviate financial anxiety, giving you more peace of mind.

Q: Where can I get mental health support if financial worries are affecting me?
In the UK, charities like Mind and Samaritans offer support for mental health issues, while services like StepChange and MoneyHelper can provide free, confidential advice on managing financial stress.

Conclusion: Your Mental Health Matters

Financial stress can feel overwhelming, but there are steps you can take to manage it and improve your mental wellbeing. On this World Mental Health Day, remember that it’s okay to ask for help—whether that’s financial advice or emotional support. By taking proactive steps to manage your money, you can help reduce stress and improve both your financial and mental health.

If money worries are affecting your mental health, don’t hesitate to reach out. At Mather & Murray Financial, our experienced advisors are here to help you take control of your finances and ease the mental strain that money can create, whether that is restructuring your finances by trying to reduce monthly payments on your debt, starting a savings plan to help ease the anxiety of not having a safety net, or simply directing you to the relevant charities that might be able to help. Contact us today for a meeting and take the first step toward financial and mental wellbeing.

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