Financial Wellness for Mental Health: Why Money Matters

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Dyuthidhara Gurunath

May 13 , 2024

There’s a popular saying that money can’t and doesn’t buy happiness. Yet, in real life and the world, one can’t survive without money and this notion only lasts until tough times fall and it isn't easy to make ends meet. Many of us often have little to no knowledge about personal finance and financial independence as these topics are rarely discussed during our student lives in school or college and, we usually find ourselves in a trap as adults.

Moreover, mental health conditions, retirement, underemployment, and unemployment can create further difficulties with financial management and create stress. With money being the root cause of so many issues in society it’s no surprise that it has a big impact on mental health.

Poor Finances Can:

Lead to frustration, anger, and conflicts at home with a partner, spouse, or family

Create insecurity, constant worries, and anxiety

Make it difficult to access means for daily living thereby leading to a decreased standard of life and poorer mental and physical health outcomes

Create sleep problems

Lower self-esteem particularly if you’re unemployed, underemployed, or are dependent on your parents after a certain age.

Cause depression and suicide ideation

Mental Health and Money

Poor mental health, undiagnosed mental illnesses, disorders, and learning disabilities can lower employment opportunities or make it difficult for an individual to hold a job or pursue their career. Mental health issues can -

Lead to a person skipping work, missing deadlines, and being irregular

Create forgetfulness and make it difficult to pay the bills when they are due and take care of finances on time

Contribute to power work performance, missed opportunities for promotions, and lower wages

Make a person lose their job if not addressed properly on time
Make work-related productivity very difficult

Additionally, a lack of financial independence can also cause older teens and adults to be dependent on parents thereby increasing the pressure on an aging demographic and creating problems with retirement. Lack of financial literacy, inflation, debts, and rising healthcare costs are some common reasons for financial anxiety.

Elderly people, in particular, need financial security for their well-being and survival. Apart from having retirement savings and social security provisions like a pension, elderly people may require assistance in handling finances. Older adults can create a plan and start saving for retirement once they cross their 30s and 40s and do their research on different social security benefits and concessions they can avail apart from getting insured to protect themselves financially.

Photo by Nik Shuliahin �� Team on Unsplash

Taking Care of Your Mind when Handling Financial Problems

Mental health can impact or can be impacted by financial difficulties. Some ways of dealing with money-related stressors are -

Practice self-compassion

Talk to a counselor, financial advisor, or therapist about your financial worries, or reach out to a trusted loved one

Minimize stress via mindfulness and other relaxation techniques

Practice self-care and get enough sleep

Tackle your worries by facing your fears and taking the appropriate steps by searching for better or newer jobs and career prospects or finding a stable job if you are unemployed or underemployed

Explore hobbies and other areas of interest

The Only Guide You Need to Financial Wellness

Making money requires a certain level of smartness and a good set of skill sets. But the trick isn’t to simply chase after what pays more but rather to grow passively in addition to having a full or part-time job depending on what suits your schedule and saving on the side.

Some basic tips on getting your finances on track are –

Develop Financial Literacy – You can do this by reading more about personal finance and making informed decisions by understanding how money works and where to invest.

Saving – Separating a portion of your earnings and income to cover emergency expenses, medical aid, and unwarranted expenditures can create a safety net in times of crisis.

Dividing Your Expenditure Into Your Needs and Wants – Doing this can help you track your spending limit where your money goes and prevent excessive outflow of money. Needs can be your everyday essentials and basics you need for your survival whilst wants can be additional expenses, such as a good meal in a fancy restaurant or business class tickets on an aeroplane, even when you may not be able to afford it with your income.

Create a Budget – Create budgets for yourself after you get your paycheck based on your needs and stick to to it.

Learn a New Skill – Learning new skills that are in demand such as coding and machine learning, for example, can help you get more qualified which can invite better promotions and higher-paying jobs and career opportunities.

Passive Income and Remote Work – Remote work and having side hustles and passive sources of income through businesses, shares, stocks, and converting a hobby or a talent into a source of income can help, particularly if you have a higher cost of living and additional expenditures.

Learn to Invest – Putting your money in mutual funds, purchasing assets, and stock/trade can contribute immensely to your passive income and help you grow. Reading books on personal finance and knowing how, when, and where to invest your money can help you maximize your output long term.

Photo by Mathieu Stern Team on Unsplash

If you’re someone struggling with your mental health as a result of financial woes or vice versa, remember that you can always reach out to Heart It Out, where our counsellors and therapists can help you navigate your journey to mental well-being and help you get on track. Remember that you're not alone in whatever you're going through at the moment, and there's always help and resources available for those struggling financially.