Are your finances related to your mental health? How does money affect emotional well-being? Is money even important to your mental health?
You may have asked yourself these questions. Perhaps you’ve seen how happy and proud wealthy people appear. And you’ve also seen people from low socioeconomic backgrounds battle stress and depression. Of course, being in a poor financial situation can cause stress and anxiety and contribute to mental health issues that impair emotional well-being.
One study showed that low household income levels are associated with mental disorders and attempted suicide. In short, low-income levels increase one’s risk of anxiety, stress, depression, and substance abuse.
But you’ve also probably seen wealthy people who battle these same mental health issues.
So, how exactly do financial issues impact a person’s well-being?
Emotional well-being refers to your overall emotional quality. It is the ability to produce positive emotions, thoughts, and feelings, even when faced with adversity.
Emotional well-being is influenced by psychological, situational, demographic, and economic factors. Emphasis on “economic.”
Economic situation is one crucial factor affecting emotional well-being.
A person’s economic status affects their mental health because financial challenges are a common cause of stress and anxiety. In fact, studies show that finances are the #1 cause of stress.
The longer your financial troubles continue, you may remain in negative moods of despair and worry as you’re unable to meet your needs. This may lead to anxiety disorder, frustration, and the use of substances to cope.
However, the link between money and mental health is bi-directional. While financial problems can lead to lower well-being, poor mental health can also impact one’s finances.
We have seen that money problems can cause distress and poor emotional well-being. On the flip side, poor mental health can impair your ability to earn and effectively manage your finances.
A person battling schizophrenia, bipolar disorder, or depression may be disinclined to work and earn because of their incessant negative emotions. And in the workplace, they can be less productive, leading to problems with office executives.
But that’s not all.
When you feel emotionally down, you may buy nice things or even go partying to feel good. Spending may give you a brief high, but it can also make you overspend in your aim to feel better, boring a hole in your finances.
Mania can also lead you to make impulsive financial decisions that you may later regret. You may no longer be able to meet your financial needs later because your bank account has been drained. All of that causes you to feel insecure about your financial future, which is the definition of poor financial well-being.
It’s like a cycle. When you struggle emotionally, you may overspend or even take loans to feel better, creating debt and leading to more stress and mental health issues.
In your aim is to feel financially secure, you must not neglect your mental health. It will be more or less like filling a basket with water if you neglect that.
And while trying to feel better, it is not always wise to spend lavishly. Having money and nice things can make you feel good, but it’s only for the short term. You may later realize how much financial trouble you’re in, and your mental health crumbles once more.
Knowing how interwoven the link between financial well-being and mental health is, it’s best to find ways to address them both and strike a balance. By doing so, you won’t fall victim to one as you attempt to escape the other.
Fortunately, there are financial wellness coaches to guide you through.
You can achieve Financial Wellness by speaking with our Financial Wellness Coach in a supportive and non-judgmental environment, in combination with a mental health professional if need be. By addressing both your emotional and financial well-being, you will feel more empowered and in control of whatever life may throw your way. BOOK NOW for a free discovery call.