Money and Mental Health – What’s the Link?

Unavoidably, money makes our world go round. Money is an everyday concern for us, regardless of our situation or standing – and money issues, as a result, can have profound impacts on us as people. There are distinct mental health impacts relating to money issues, and experiencing them can be disorienting. But what is the link, and how can it be reasonably addressed?

The Link Between Money and Mental Health

Of course, the inextricable link between money and mental health is not all too difficult to recognise, particularly in the aftermath of some punishing months concerning the UK’s financial climate. Many more of us have been unlucky enough to experience the deleterious health consequences of anxiety around money, between real-term cuts to pay and significant rises to the cost of goods and services.

Dr Jean Carroll of Somatic Connection has said there is a drastic increase of people struggling with their mental health in 2023 ,due to money worries to pay for just the essentials of food and utilities.

Financial pressures have affected many of us directly, with more than half of adults having experienced great difficulty paying energy bills in the past year. The Mental Health Foundation also found that a third of adults feel ‘anxious’ about money, and one in ten feel ‘hopeless’ – a symptom that could give way to dangerous mental health conditions.

How to Tackle Money Worries

Luckily, the route to minimising the impact of financial anxiety, and the other major mental health impacts of thinking about money, is a relatively straightforward one. While the path itself isn’t so easy to walk, the steps are small and actionable – and can go a long way to giving you a real sense of control over your financial situation.

1. Create A Budget

Necessarily, the start of addressing potential money troubles is recognising the need for a budget. Knowledge is much more than half the battle, and knowing exactly what is coming in and going out each month can give you a powerful starting block from which to proceed.

2. Consider Getting Rid Of Credit Cards

Debt is one of the biggest general causes of financially-motivated anxiety. With the threat of late repayments, rising debts and even repossession of property, getting rid of debt should be a high priority. Removing access to credit is the other side of the coin here, too; limiting access to overdrafts and credit cards can help improve long-term financial health.

3. Save Where You Can

Saving money is only a worthwhile endeavour once you are out from under the yoke of debt. Creating the opportunity for yourself to put a little money aside each week or month allows you to plan for long-term financial security, whether reducing the risk brought about by emergency costs or simply enabling you to think more positively about future life changes.

4. Use Online Resources And Help

Finally, recovery from the impacts of poor financial health is not necessarily linear. Even the slightest of shocks to newfound stability can have damaging impacts mentally, while some situations can be too complex to engage with meaningfully. In these scenarios, receiving help from a third party can be transformative. This might take the form of a debt charity, or a local Citizen’s Advice team.