Money and Mental Health
The recent pandemic and the current cost-of-living crisis have made managing our money even more complicated, challenging and potentially more stressful. Money worries can cause mental health difficulties or exacerbate existing issues. Anyone can be affected by low mood and mental ill-health, and it’s important to be able to recognise the symptoms, as well as some potential options to consider if you are struggling.
The link between money and mental health is cyclical – financial worries can often lead to low mood, anxiety and stress, and similarly, mental health difficulties can cause difficulties for individuals trying to manage their money, inhibiting their ability to tackle what can be a daunting topic.
Money worries can affect us in different ways
Financial difficulties can cause a range of negative feelings, ranging from shame, embarrassment and guilt, to anger, frustration and helplessness, as well as anxiety, panic, stress and depression. They can also lead to feelings of loneliness and isolation, which in turn can exacerbate our state of mind if we are already feeling low.
These feelings can manifest themselves in physical symptoms such as exhaustion, trouble sleeping at night, or complaints such as headaches and stomach aches – the connection between our emotions and physical state is not always immediately obvious, but can be far-reaching. And some of these problems lead to other health conditions, such as long-term tiredness, which can make us more susceptible to other illnesses.
Mental health issues can impact on how we view and manage our money
We may lack motivation to take the necessary steps to address our financial worries, and we may feel that anything we could do is pointless or futile. We may avoid anything to do with money, such as opening bills, or even thinking about it or discussing our issues.
Depression, anxiety and stress can all affect our confidence and ability to take practical steps and proactive action with regards to our money, which can be detrimental in the long run.
It could be that we overspend, to get a temporary lift and feel better about things by doing some ‘retail therapy’. Or that we stop spending at all, because we are worried about the consequences.
Longer term, mental health difficulties can impact on our ability to find or keep a job that brings in sufficient income for our needs, or to be able to study, if that is a means to getting a promotion or a job in a certain field.
What can we do if we are struggling with mental health issues and money worries?
Acknowledging the issue is an important, and difficult, first step. There is help out there for all kinds of mental health difficulties, and there are lots of resources to help us find the right support for ourselves.
Psychological techniques you can try yourself:
Mindfulness – a type of meditation that involves focusing on the moment and blocking out other distractions in our mind. It is often linked to breathing exercises, which can help to quieten our busy minds and focus our minds on one particular thing – take a look at this simple exercise as an example.
Rational thinking vs catastrophising – a technique also known as ‘taking your thoughts to court’, it involves questioning your worries, rather than allowing yourself to run away with worst case scenarios. It can help us to look at factual evidence and consider negative thoughts in that context, to give us a more rational outlook and help to reduce anxiety. This video walks through the steps in an animated short.
Self-care:
Whether we are feeling low or not, it’s really important to take care of ourselves – body and mind – and some of the techniques below can also be used when we are struggling with money worries, to lift our mood:
- Exercising – a walk, jog, swim or cycle can transform how we are feeling mentally
- Eating healthily – avoiding ‘quick hit’ junk food when possible and paying attention to our diet
- Socialising - seeing or speaking to a friend or loved one is proven to improve our well-being
- Ensuring we get enough sleep – easier said than done, but a good bedtime routine, removing devices from the bedroom, and allowing yourself enough hours in bed can all really help to allow our bodies and minds to get the rest they need to feel on top form
- Journaling – writing down our thoughts can be very therapeutic – on our Money Course we discuss the benefits of keeping a journal in our section on gratitude, as the psychological benefits of this approach have been proven many times.
It’s really important that you speak to your GP if you are experiencing really low mood or extreme mood changes. They can discuss how you are feeling and talk through the range of options that might work for you and your particular mental health issues.
Further resources
Here are some websites with lots of useful resources on this topic:
Every Mind Matters – the NHS’s portal to mental health support and information
Clic – an online forum (which is moderated) to share experiences and get help and support from others, as well as a range of online resources to support your mental health
Talking therapies – this NHS service allows you to self-refer for IAPT (Improving Access to Psychological Therapies), which includes Cognitive Behavioural Therapy (CBT), counselling, and self-help services (please note, you do need to be registered with a GP to use this service)
Rethink Mental Illness - a website offering support and resources for those affected by mental ill-health, including a section on the symptoms of stress, different mental health conditions, where you can find help in your area, and how to support others who are struggling with their mental health
Mental Health UK’s website features some exercises and resources to help you recognise and deal with stress