Mind Money Soul
Mental Health Awareness Month Edition
CW Mental Health, Suicide
Welcome back to Finance Therapy, did you miss me? Appropriately, I decided to prioritise my mental health and not write this as planned: weary eyed on zero sleep, between flights on a 20+ hour journey, after an evening of networking landed me home at 1am before my early morning flight - and no, I wasn’t already packed and ready to go. Hey, I never claimed to have my sh*t together. Then, two weeks of life happened and so here I am, a little late, but just in time to wrap up mental health awareness month. It’s a big one, so grab a cup of whatever, get comfy and let’s go…
But first, I couldn’t leave you without pics from some of the worlds best beaches - St.Thomas and St.John, USVI.
Taboo to the power of two
It’s no secret, money stress can cause a huge strain on our mental health, and poor mental health can have a detrimental effect on our finances. Yet, we as a society hate talking about either topic, let alone the two together. My truth is, I’ve ironically spent the past few months stressed about money, and as per my last post, desperately trying not to head back down the path to poor mental health and burnout. I also know that landing a high-paying role won’t solve all of my problems forever, and like all things in life, our money stories and life events will impact our ability to ride the highs and weather the storms.
Here we’ll explore this connection in detail, offering insights and tips to break free from the negative cycle and build a healthier relationship with both your finances and your mental wellbeing. You’ll have to decide what comes first for you, the chicken or the egg?
The Vicious Cycle: How Money Worries Impact Your Mind
I’ll start with the egg. Financial stress is a major mental health concern. 1 in 5 people with mental health problems are in problem debt. The money and mental health policy institute found that people in problem debt are more than three times as likely to attempt suicide as those who aren’t, that’s more than 100,000 people in problem debt attempting suicide each year in the UK alone.
Studies also show a significant correlation between money worries and conditions like anxiety, depression, and even physical health problems. When faced with financial insecurity, our brains go into overdrive and we might find ourselves in a functional freeze, just doing what we can to survive in the now.
I’ve personally found, the more stressed I am about money, the more my life choices become somewhat questionable. That is: the jobs I’ll apply to and take on because I feel ‘desperate’ or like nothing better could come along, the experiences I miss out on because I’m scared the money might not just come after it goes, or even the close relationships I choose to keep, because they might offer some sense of stability.
We constantly worry about bills, debt, commitments to our friends and family, potential job loss and making ends meet, whilst comparing ourselves to our peers and where we should be on the career, relationship and housing ladders. And it’s been feeling a lot more like snakes than ladders to me.
These worries can lead to:
Increased anxiety: The constant pressure of financial obligations can leave you feeling anxious and on edge, impacting your ability to focus, relax and sleep - further impacting your mental and physical health.
Depression: Feeling trapped in a cycle of financial hardship can lead to feelings of hopelessness and worthlessness, triggering symptoms of depression.
Isolation: Financial shame and fear of judgement can lead to withdrawing from social activities and support systems.
Impulsive behaviours: Trying to cope with financial stress can lead to unhealthy coping mechanisms like compulsive spending aka retail therapy, gambling, over-eating, drinking or neglecting basic needs, which can exacerbate financial problems. Have we seen the price of chocolate recently?! *Cries in carrot sticks*
Then there’s the chicken: How Mental Health Can Affect Finances
Mental health challenges can make managing finances incredibly difficult.
As someone previously diagnosed with generalised anxiety disorder and depression, after tons of therapy, meds, crying and reflection I can tell you, the more stressed I am about life, the poorer my decisions get with money. The old ‘I haven’t got time to shop and cook, I’ll order in’, the Ubers and public transport vs riding my bike, the I have nothing to wear, I hate my body and I need to buy more clothes, or the ‘I just need to get away’ short trips add up. I find myself constantly choosing convenience over conscious decision making - not that I’m a particularly decisive human, but that’s another blog post.
For people living with mental health conditions, this could look like:
Difficulty staying focused and managing money: Symptoms of depression, anxiety or even ADHD can make it difficult to stay organised with budgets or bills.
Reduced Motivation: Feeling low on energy or lacking hope for the future can make it harder to maintain employment or pursue financial goals.
Reduced earning potential: Mental health issues can affect your ability to work, leading to reduced income or even unemployment.
Poor Decision-Making: Symptoms like functional freeze and brain fog can cloud judgement, leading to impulsive or risky financial decisions.
Increased healthcare costs: Mental health conditions are often misdiagnosed, misunderstood and can require expensive treatment, adding to the financial burden.
Isolation: Social withdrawal, common with anxiety and depression, might lead to neglecting social activities that could save money, like rideshares, group outings, or even offers of help from friends and family.
Breaking Free (we’re soaring, flying): Financial Wellness for Mental Wellbeing
(90’s kids, take in the HSM moment)
The good news is, nothing is permanent, good or bad. You can break the cycle of money-stress and mental health.
Here are some tips to get your money right:
Track Your Spending: I know you don’t want to. Personally, I prefer to track my calories during Christmas than my spending, ever. But you gotta do what you gotta do. Awareness is the first step. Knowing where your money goes allows you to make informed decisions and identify areas for improvement. Budgeting apps, built in features in your mobile banking or simply jotting it down with good old pen and paper can be helpful tools.
Create a Realistic Budget: Don't set yourself up for failure with unrealistic expectations. Build a budget that reflects your income and needs while still leaving room for some enjoyment. Here’s a refresher on perfectionism, unrealistic goals and failure.
Automate Automate Automate: Set up automatic transfers for your savings, investments, rent, bills and credit cards if it’s available to you. This "set it and forget it" approach helps build an emergency fund and meet future financial goals without relying on willpower. What’s left in the account is yours to spend - go wild.
Seek Free or Low-Cost Financial Advice: We know there’s a financial advice gap and it’s typically unaffordable. So ask your employer what they’re doing to help you? Many employers now offer access to financial coaching, therapy and counselling at no cost to you. Failing that, there’s plenty of money coaches, financial therapists and non-profit organisations providing affordable advice available here. Just kidding, there’s a resource list at the bottom.
School yourself: The internet, app store, Spotify and every bookstore is flooded with financial self-help and education. Invest a little time in learning about topics relevant to your financial goals. You don’t need a degree in this stuff - trust me, I have one and have never used it for my personal finances. Another set of resources at the bottom, lucky thing.
Challenge Negative Money Beliefs: Do you have limiting beliefs about money, like "I can never get ahead" or "Rich people are greedy"? Challenge these beliefs and replace them with empowering affirmations such as "I am capable of managing my finances" or "Financial security is achievable."
Now let’s get your head right
Health is wealth, people. Never forget it. Here are some ways to prioritise and nurture your mental wellbeing:
Develop Healthy Coping Mechanisms: Find healthy ways to manage stress, like exercise, dance, meditation, breathwork, or spending time in nature. Somatic practice can help you heal while connecting your body and mind in the here and now.
Practice Self-Compassion: Be kind to yourself. You deserve it. Life happens. Financial setbacks happen. Focus on progress, not perfection.
Talk About Your Concerns: Don't bottle it up. Talk to a trusted friend, family member, therapist, counsellor, or financial coach/advisor. Looking for a new safe space to share, listen and reflect on your relationship with money? Join our Finance Therapy Circle community online. The next session is on 18th June at 5.30pm BST. Sign up here.
Seek Professional Help: If your mental health issues are severe and impacting your daily life, don't hesitate to seek professional help from a therapist or counsellor. Many NHS Trusts have self referral to free talking therapies and CBT services - check with your GP or online for your local service.
Practice gratitude: Focusing on what you have, rather than what you lack, can shift your perspective and reduce the pressure you’re putting on yourself.
Remember: You are not alone. Millions of people struggle with both financial stress and mental health challenges. They deeply influence each other, creating a cycle that can be both empowering and destructive. By addressing both aspects, you can create a more balanced and fulfilling life.
Taking Action
This week, take one small step towards improving your financial and mental wellbeing. Here are some ideas:
Track your spending for three days to gain awareness.
Find community to start talking about your money worries. Hint: Sign up to our finance therapy circle
Schedule a relaxing activity you enjoy to de-stress.
By taking care of yourself – financially and emotionally – you're investing in yourself and a future in line with your goals.
Resources as promised
Where can I get free financial advice and guidance?
Source: Unbiased
MoneyHelper offers free, impartial advice backed by the UK Government. It offers money and pensions guidance online, over the phone or in person and can connect you to a free debt adviser.
Citizens Advice offers free, independent advice in various areas, including guidance on pensions, housing, employment issues, debt, benefits, family matters and consumer rights. You can access them over the phone, online or in person.
StepChange is the UK’s leading debt charity and has helped millions of people deal with their debt problems for free. StepChange will help you work out your income, budget and debts and use this to devise a solution before setting up a plan and extra support.
National Debtline is a free and confidential debt advice service, run by the Money Advice Trust. You can call, use its online webchat or use the digital advice tool to get the right advice for you.
The Financial Ombudsman helps settle complaints about financial businesses for free. They may be able to help if you have any issues with, Financial advice, pensions and investments, Bank accounts, payments and cards, Insurance products, Loans and finance loans, Debt collection and repayment problems, Mortgages
Where can I learn more about personal finance?
Pennies to pounds for jargon-free financial education
Your Juno Financial Education app for women and non-binary people is now free forever.
Explore your money trauma at Trauma of Money
Join investing masterclasses and community at Girls That Invest & Female Invest
Social Media: Search the words "money”/”finance”/”personal finance” on your favourite social media platform and find 100s of people sharing information and resources to help you in your region.
Books I’ve enjoyed
Ikigai: The Japanese Secret to a Long and Happy Life
The Psychology of Money : Timeless lessons on wealth, greed and happiness
Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones
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