Did you know there is a significant link between your financial situation and your mental health?
Your mental health is impacted by a variety of biological and environmental factors, one of them being the way you manage your money. This article will look at how money impacts your mental health, and offers practical tips to help you manage your money, budget accordingly and improve your mental health.
How does money impact mental health?
There are several ways that money can impact your mental health, here are some common examples:
- Worries around your finances can increase your stress and anxiety
- If you struggle with depression you may lack the motivation to manage your money properly, or even work to earn money
- You may be addicted to the feeling spending money gives you and therefore, overspend
- You may avoid thinking about money, or obsess too much over money
Unfortunately, it can be a cycle. If you are struggling with your mental health, you may hinder your finances and add more stress and worry to your plate. Alternatively, money problems may cause you to experience stress and anxiety.
Tips for managing your money
#1 Understand your financial situation
If you review your finances and come up with a plan, you can move forward in life and take a little weight off your shoulders. You can create a simple spreadsheet to understand what your essential outgoings are, what you are spending money on unnecessarily, and what income you have. This task can help you feel more in control over your finances.
#2 Understand your spending patterns
Bringing awareness to your spending patterns, and in particular, how you feel when you spend money, can be the first big step to addressing your struggles and taking positive action. Ask yourself, how do you feel when:
- You think about money
- You spend money
- You save money
You should also consider at what times you find yourself spending more money, and what financial scenarios make your mental health feel worse.
#3 Take steps to save money
You must create new, and positive spending habits so that you can live with less stress and the comfort of a safety net. Based on your current spending habits, you should consider reviewing which purchases are unnecessary, and which ones you can save money on. Unfortunately, when you are stressed and spend money, you are more likely to impulse buy. Here are some top tips to help you save money, and reduce your stress.
You should always put a little money into your savings before you purchase something.
Don’t pay interest
Avoid paying interest on any debt you have. Consider moving to an interest-free provider and consolidating where you can.
Used items have the same quality, but are a fraction of the cost. Not only can you help the environment, but you can save a significant sum of money. Whether you get used car finance or head to the thrift shop, your bank balance will thank you.
Keep on top of your finances by reviewing your spending, habits and feelings each month to see what positive changes you can make.
Money can impact your mental health in a variety of ways. It is important to learn how to manage your money, to help boost your quality of life.
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