Finances are an essential aspect of our lives. They are the key to fulfilling our basic needs and to satisfy our wants as well. However, it is crucial to understand that our financial health not only affects our physical wellbeing but also our mental health.
Mental health is a state of well-being in which an individual realizes their own potential, can cope with the normal stresses of life, can work productively, and can contribute to their community. An individual’s financial situation greatly impacts their mental health. Let’s discuss how it affects one’s mental health-
1. Anxiety and Stress Levels
Financial troubles can cause considerable stress to an individual, creating intense anxiety levels. As per a study, 72% of Americans feel stressed about their finances. Constantly worrying about meeting financial obligations such as rent, debt, or bills can lead to severe psychological symptoms such as irritability, insomnia, and even panic attacks.
2. Depression and Other Mental Conditions
Financial stressors can lead to a heightened risk of depression, anxiety, and other mental illnesses. Financial instability can trigger or exacerbate symptoms of pre-existing anxiety or depression conditions, leading to various emotional challenges.
3. Negative Body Image
Financial issues can lead to unhealthy behaviors that can impact one’s body image. Women, in particular, can become so consumed with their finances that their self-esteem and self-worth plummet. As a result, they may participate in unhealthy activities such as eating disorders or excess body grooming.
Fortunately, there are several ways you can take control of your finances and mitigate the negative impacts on your mental health. Here’s how:
1. Invest in a budgeting method
Investing in a budgeting method can help determine where your money goes each month, identifying areas where you may cut back. You can even follow the 50-30-20 rule of budgeting, i.e., spending no more than 50% on necessities, 30% on leisure, and saving the rest for the future.
2. Seek Financial Advice
Consulting a financial advisor can help you develop a better understanding of your finances. They can help you develop a better financial strategy and also provide insight into your investment strategies.
3. Find Supportive Sources
During a financial crisis, it is always good to have a social infrastructure that can support you. Seeking support from family and friends can help you manage stressors and help in building your confidence.
4. Create Achievable Goals
Setting yourself ambitious but achievable financial goals can be helpful to your mental health. Small goals that are easily attainable can help you create a roadmap for financial stability and also help you stay motivated.
5. Practice Self-Care
Mental health and financial wellbeing are closely linked. Practicing self-care methods such as meditation, breathing exercises, yoga, reading, or getting enough rest can significantly reduce stress levels, allowing you to develop a clear mind when making financial decisions.
Managing your finances well can help increase your sense of self-worth and confidence. Learning how to handle money and finances can help you develop a healthy and positive attitude towards financial stability. By taking care of your financial wellbeing, you can reap the rewards of a healthier lifestyle.
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