The effects of money on mental health

The effects of money on mental health

Money affects so many aspects of daily life. It is natural that wealth, or more importantly lack thereof, has a significant effect on mental health. Mental health heavily impacts mood and behaviour. That is why it is important to look at how mental wellness and finances are linked. Here is how money affects mental health.

The effects of money

Despite the old saying, money can, in fact, buy happiness. Money provides food, shelter, security, and a number of other basic human needs. When finances are secure it eliminates a lot of worries. Having a lot of money can lead to happiness, but only up to a point.

As such, insecure finances place a lot of pressure on a person. Having money troubles causes stress, which leads to anxiety, depression, irritability, and overall poor mental health. A poor mood can also lead to a lack of sleep, bad social interactions, and erratic behaviours that negatively compounds the situation.

Cycle of finance and mental health

A significant problem with poor mental health is that it makes it harder to face problems. Stress and anxiety over finances can make a person less likely to deal with their financial situation. This state of mental health can lead to bad spending habits or unsatisfactory work performance. In turn, this ensures that finances don’t improve, creating a cycle that leads to poor mental health.

How to improve mental wellbeing

The cycle of poor mental health and financial problems can be fixed. Having a healthy relationship with money and using it wisely reduces the negative impacts of finance on mental wellness. Here are some steps to take:

  • Tackle money problems head on. A problem will only become worse over time if it is not addressed. It’s not always easy, but the sooner it’s dealt with, the sooner mental health will improve.
  • Ask for help. Don’t be ashamed of asking for help. Everyone needs a helping hand at some point. Seek out trusted family, friends, and mental health professionals to help.
  • Make a money plan and stick to it. Having a rigid budgeting plan prevents frivolous spending. Budgeting also highlights where money can be saved.
  • Have a financial advisor assist with financial planning. Financial advisors assure that all money problems are dealt with.

Looking after finances and mental health goes hand-in-hand. It is so important to ensure that money is managed wisely. Avoid the cycle of negative financial and mental wellbeing. Reach out to Remnant for great financial advice.