Breaking the Toxic Relationship Between Money and Mental Health

Disclaimer: this article is not intended to be a substitute for professional advice, diagnosis, or treatment. Please always seek the advice of your mental health professional or other qualified health provider with any questions you may have regarding your mental health. ❤️

Let's face it: money is often one of the biggest sources of stress for most of us. Even if you have a positive and healthy relationship with money right now, chances are there was a time when you were anxious about a lack of savings, debt or, well, anything money related.

The stats confirm that these problems are very real and very scary. According to Citizens Advice, 74% of us feel our mental health is impacted by debt worries and over half of us experience panic attacks over money concerns. Approximately 1 in 4 people in the UK will experience a mental health problem each year, and more than 3 million people in the UK have both mental health problems and financial difficulties.

This means there are a lot of people who are at risk of falling into the vicious cycle of money-related stress, financial difficulties and mental health problems.

Trying to figure out what comes first - financial problems or mental health issues - is a bit of a 'chicken or the egg' endeavour. The fact, however, is this: when you're anxious, depressed or even stressed, managing money can feel like an impossible feat. Even simple tasks like paying bills can feel arduous when you're struggling with mental health problems. Worse yet, that feeling of humiliation that is all too common among the financially stressed makes it harder to seek help.

Simply put, mental illness and money don't mix.

So how do you break out of the cycle and take charge of your wellbeing - both financial and mental?

While we're by no means professional health advisors (please seek professional help if you're feeling out of control!), here's a few ideas to help start feeling better.

Step 1: Get Help for Your Mind

Telling someone with mental health problems to 'take charge’ and 'face their problems’ is not only insensitive, it is also completely pointless. When your mind is sick, you can't just snap out of it - you need to heal it.

Professional therapy, mindfulness and yoga are the 'holy trinity’ when it comes to mental wellbeing. If either money or time is an issue, you can find affordable therapists online (via platforms like Better Help and TalkSpace, for example). Same goes for mindfulness and yoga - there are plenty of free and cheap resources that will help you get into both - like Headspace, Calm and Pocket Yoga.

If you feel like your mental health issues run deeper than anxiety and stress, please talk to your GP as soon as possible. They will be able to advise on the best course of medication catered to your needs.

Step 2: take care of your body

Treat your body as if it were a luxury item in need of great care. Make sure you try to get adequate sleep - a good way to do this is to ensure you spend the hour before you go to sleep completely screen-free and reduce your alcohol and caffeine intake.

You already know this but we'll say it again - exercise and nutrition are key. As is socialising with supportive, loving people and engaging in hobbies and leisure activities, like walking your dog, cooking, or reading. Think about what makes you happy and helps you switch off, and try to pencil in those activities on a daily basis.

Step 3: REBUILD YOUR FINANCES

Once you're en-route to healing your mind, you should slowly be able to tackle your finances, little by little. Try to break these down into 'mini-tasks’ to avoid feeling overwhelmed and stressed.

/ Educate yourself: Arm yourself with resources to help you feel more empowered and in control. The more you know, the more confident you'll be in taking charge and rebuilding your financial health. Follow our Instagram if you don't already for easy-to-digest financial tidbits to kick start your financial education journey.

/ Focus on repaying debt: Debt and mental health problems are often inextricably linked. Half of people with serious debt also have a mental illness, so tackling debt is a seriously big deal when it comes to tackling your mental health issues. Seek support and talk to other people in debt - My Frugal Year is a great community for this - it will help you feel less alone. The important thing with debt is to face it sooner rather than later. Start dealing with the most important debt first. Priority debts are mortgage payments, rent, bills, council tax, taxes, etc. Learn about debt repayment methods, such as the debt avalanche and the debt snowball. Keep track of your achievements and celebrate them!

/ Create a budget: Burying your head in the sand will lead to more stress and anxiety, so make sure you create a budget and set a 'money date’ with your accounts once a week to keep on top of your spending. Try the 50/20/30 budgeting rule as a guideline - this means that 50% of your income is allocated to essential expenses, 20% to financial goals and the remaining 30% to lifestyle, flexible spending.

/ Plan for your future: Once your immediate debts are taken care of, start squirrelling away for an emergency fund. You'll feel so much better mentally when you know you have a pot of money saved away! Make sure you're clued in on the pension front, too. When you have 3-6 months’ worth of monthly expenses saved up, you can start thinking about investing in stocks and shares for your future.

/ Develop pride in good money habits: It's not about how much you earn, but about the money habits you've taught yourself, such as spending mindfully and saving regularly, which are all things we can control.

Step 4: BE KIND TO YOURSELF - PROGRESS TAKES TIME!

When we improve our financial health, we experience less stress. Getting started can feel daunting, so make sure you use the tools available to you to start feeling better mentally first. Then, when you're able to start tackling your finances, start building on your ability to handle unexpected expenses (emergency fund), your freedom to enjoy life (savings), and progress towards long term goals (retirement). But remember - these things take time! Never beat yourself up if you face setbacks and please learn to be kind to yourself - your financial habits don't define who you are as a person.