Money and Your Mental Health

Money and Your Mental Health

All but the wealthy feel the pinch in a cost-of-living crisis. As the price of basic essentials continually rises, many of us are left struggling to make ends meet. Some even face a stark choice of putting food on the table for their family or keeping their home warm. Pressures like these can trigger financial anxieties that have a significant negative impact on mental health.


Feeling down at times is a natural reaction when you’re faced with money worries. But if the situation starts to overwhelm you as you constantly struggle to make ends meet, it can turn your life into a waking nightmare of issues that can easily spiral out of control.

This can result in mental health problems that may make it more difficult to maintain a steady income. Managing money also becomes harder, and getting into debt is an ever-present risk.

Common Money Worries

Research by the Mental Health Foundation in 2022 showed that people’s most pressing financial concerns were:

  • Being unable to maintain their standard of living.
  • Heating their home.
  • Paying monthly household bills.
  • Not having enough money to buy food.

Mental Health Problems Caused by Lack of Money

Concerns about lack of money can impact almost every aspect of our personal and professional lives, including relationships.

Money worries have been linked to emotional and psychological issues such as:

  • Stress.
  • Depression.
  • Low self-esteem.
  • Feelings of shame or guilt.

When money worries such as these become increasingly part of your everyday life, it can result in financial anxiety.

What Is Financial Anxiety?

Financial anxiety occurs when concerns about lack of money begin to escalate. Worries often revolve around debts, income, job security, and the ability to afford necessities and non-essentials.

These issues are becoming increasingly prevalent during the current cost-of-living crisis.

According to the Office for National Statistics, 77 percent of us are worried about rising prices. Not surprisingly, those with the most serious concerns included those on low incomes.

A survey by the Mental Health Foundation also found that stress and anxiety about personal finances were widespread, with 10 percent experiencing feelings of  hopelessness.

And the organisation warned that the situation would get significantly worse unless the government provided more support for the most vulnerable.

Signs of Financial Anxiety

Financial anxiety is not regarded a medical disorder in itself but it may be a contributing factor. Signs that you might be experiencing financial anxiety include:

  • Fears that your financial problems will escalate.
  • Constantly worrying about your ability to pay bills.
  • Repeatedly checking your bank account.
  • A feeling of dread when you get a bill.
  • Difficulty sleeping.
  • Trouble concentrating.
  • Feelings of impending doom.
  • Irritability.
  • Loss of appetite.

How to Protect Your Mental Health During Financial Difficulties

If you’re struggling with mental health issues due to lack of money, there are various self-care measures you can take that may help counter anxious thoughts.

It’s important to realise that certain problems triggering your anxiety – job loss through redundancy, for instance – may be outside your control and take time to overcome. Keep in mind that things can change.

Cognitive behavioural therapy techniques can help you focus on what you can control.

It can also help to talk confidentially about your money worries with a friend or family member you trust. Getting someone else’s perspective on a problem can help you figure out ways to deal with it.

A further way to help cope with stress is by staying active and eating healthily – physical health often impacts emotional wellbeing.

Professional Help

Help is available from medical professionals and debt counsellors if you feel you can’t cope alone with anxiety over your personal finances.

Your GP can refer you to services specialising in talking therapy, and you can get practical advice on managing debt from organisations like StepChange Debt Charity.

How to Take Control of Your Finances

A budget to balance your income and outgoings is essential to take control of your personal finances and ease stress over money.

Work out your net income – wages or self-employed earnings after tax, or benefits. Then list your monthly expenses such as mortgage or rent, utility bills, groceries, entertainment, and loan repayments.

If your expenses are exceeding your income, your budget should give you a clear idea of where you can rein in spending on non-essentials.

Review your budget monthly so you can make adjustments. Your income will likely fluctuate if you’re self-employed or on a commission-based salary, for example, and the cost of groceries and utility bills such as energy costs often rise.

Budgeting can be also be an effective part of managing debt.

How to Manage Debt When You Have a Mental Health Problem

Resolving debt problems depends on the type of debts you have, the total amount you owe, and how much you can afford to pay off your debt.

In general, debt management entails assessing your financial situation, formulating a plan to pay off your debts, and putting in place strategies to avoid future debt-related issues.

This is crucial for your financial health and protecting your mental wellbeing. But debt management can seem overwhelming if you already have a mental health issue.

Help is available, though.

If you’re receiving mental health crisis care, you can get temporary relief from debt issues under the Debt Respite Scheme (Breathing Space) scheme. This gives you legal protection against creditor action for as long as you’re receiving crisis care treatment, plus 30 days.

And if your debt issues have resulted in a drop in your credit score, you can get help on overcoming the emotional and psychological effects of bad credit.

Final Thoughts on Money and Mental Health

Concerns about your personal finances can negatively impact your mental health, and the situation can become a vicious circle. Poor mental health makes it harder to manage your money, and the ensuing increasing problems make your mental health worse.

However, financial anxiety can be alleviated by taking steps to safeguard your mental wellbeing and knowing how to get the support you need to restore both your financial health and your mental health.


— Share —

— About the Author —

Leave a Reply

Your email address will not be published. Required fields are marked *

— Follow Us —

Up Next

Top Ways To Shop The Best Kratom Products For Mental Wellbeing

Best Kratom Products For Mental Wellbeing

In recent years, Kratom has emerged as a popular botanical supplement known for its potential to enhance mental well-being. With its origins in Southeast Asia, where it has been used for centuries, it is being rediscovered worldwide as a natural aid for relaxation and mood management. However, the surge in Kratom’s popularity comes with a critical responsibility: ensuring that you are sourcing and using this substance in a way that is safe and effective.

This comprehensive guide will walk you through multiple aspects of selecting the highest quality Kratom products to support your mental well-being. The importance of always checking (take the time to read the) “labels for multiple products from the manufacturer” and understanding its effects on

Up Next

Exploring Alpha Brain’s potential for refreshing aging minds

concept of brain diseases mental health alzheimers

As we grow older and  time goes on inevitably, many changes occur inside our organism, including our brain. With age, people often realize that they don’t remember certain things as they did in the past. Recalling and memorizing things is also becoming problematic. Our biological clock is ticking like a bomb, and, from a biological perspective, aging leads to changes in brain size and mental functions slowing down. Today’s world proposes different solutions for brain aging – Alpha Brain.

Unique supplement on the market

With a wide selection of brain-boosting supplements, Alpha Brain has gained a great deal of attention in the world of measures supporting and optimizing our cognitive functions. Based on the product description on many supplement store’s pages, Alpha Brain is defined as a di

Up Next

What to Expect from Generative AI In the Fintech Industry

Generative AI In the Fintech Industry

The FinTech sector is on the cusp of a revolution, spearheaded by the integration of generative AI development solutions. This transformative technology is set to redefine the landscape of financial services, offering unprecedented levels of personalization, efficiency, and security. Generative AI capability to analyze and generate data-driven insights presents a great opportunity for FinTech companies to innovate beyond traditional boundaries.

Geniusee is at the forefront of this technological advancement. It has positioned itself as a pioneer in leveraging generative AI to create sophisticated solutions tailored to the FinTech industry. With a deep underst

Up Next

Opioid Effects on Mental Health

Opioid Effects on Mental Health

The opioid epidemic emerges as a growing challenge, casting profound shadows across the mental landscapes of individuals affected.

This narrative explores an insight into the deep psychological consequences of opioid dependency, weaving through the complex relationship between substance abuse and mental health. It’s a quest for awareness, understanding, and, ultimately, a pathway to healing.

The Hidden Connection: Opioids and Mental Health

Opioids, often perceived as a remedy for physical discomfort, conceal a darker truth beneath their surface. The solace they provide is fleeting, unveiling a terrain scarred by psychological strife. The journey into dependence is a quiet one, laden with promises of relief that gradually en

Up Next

How Exercising With Your Dog Improves Your Mental Health

How Exercising With Your Dog

In the intricate landscape of mental health management, the integration of physical exercise with canine companionship emerges as a distinguished method for augmenting psychological wellness.

This scholarly discourse aims to elucidate the complex mechanisms through which engagement in physical activities with a dog serves not only as a catalyst for improved physical health but also as a significant boon to mental and emotional well-being. Through a detailed exploration of this symbiotic relationship, we uncover the nuanced benefits that canine-assisted exercise bestows upon human psychological states, thereby offering a refined understanding of its value in a comprehensive mental health strategy.

Up Next

From Therapy Room to Boardroom: 10 Steps for Psychologists Transitioning to HR

Steps for Psychologists Transitioning to HR

So, you have done your time in the therapy room, and you are now considering applying the training and knowledge you’ve acquired as a psychologist to the field of Human Resources. It is a big, brave and possibly scary step. Therefore, we reckon you might welcome a bit of guidance.

If you’re interested in pursuing a career in HR, it’s important to understand what skills, experience and qualifications employers are looking for. Therefore, knowing how best to transition from your current position to one in human resources will go a long way towards helping you to secure job interviews and more confidently embark on your new career path.

In this guide, we’ll shine a spotlight on the human resources industry, highlighting some of the advantages of transitioning to a role in this field, and revealing ten of the best pathways to make your career change as succ

Up Next

A Beginner’s Guide to Sigmund Freud’s Theory of Dream Interpretation

Sigmund Freud's Theory of Dream Interpretation

Freud is more than the oddball father of psychoanalysis we know him as but has become a cultural phenomenon. Everyone has heard of Freud, from the stranger to psychiatric science to the Master of Mental Health graduate, and with good reason. Before Freud, most psychotherapy simply consisted of getting the mentally ill and psychotic out of the way of “normal” society. This involved shipping them off to asylums where they were largely ignored and left to degenerate. It was Freud’s works and early studies of psychoanalysis that paved the way for the modern therapy and counselling we have today. Among the most famous, was Freud’s contribution to dream analysis, as published in his 1899 work “The Interpretation of Dreams.”