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It will come as no surprise to most of us that money problems and mental health problems often go hand in hand. When you’re experiencing this it can often feel like a disastrous, but very personal set of circumstances.
Your money struggles are impacting your mental health and deteriorating mental health is impacting your ability to earn and manage money. It can feel very much like you’re the problem here, but you’re not.
Far from being simply personal, this is a universal issue. The UK now has a Money and Mental Health Institute set up to address the intricate ways that the two are linked and take action on specific issues that exacerbate the problem.
The organisation is tackling everything from aggressive language in communications from debt agencies, to government policies around issues such as gambling addiction, online financial scams, and support to help those with mental health issues back into secure employment.
The big problem here of course is that bad mental health and poor management of personal finance are intricately linked, with correlation effectively going both ways, and each often causing more of the other.
Ways in Which Money Impacts Mental Health
A lack of money creates day-to-day stress and a certain amount of decision fatigue, as you constantly make decisions between which needs and urgent wants to fulfil.
Many social commentators focus on worst case scenarios that involve choices like food or rent, but any situation where you’re having to choose between two things that are (for you) elements of a happy and balanced life can be mentally taxing.
In addition, many people with less-than-perfect finances are living in a less-than-optimal situation. The worst case scenario is total homelessness, but other scenarios are insecure living conditions, couch surfing or living in an abusive situation. Even simply having to share with multiple roommates — if you’re a person who needs peace, calm and privacy — can be detrimental to mental health.
Debt issues can also adversely impact mental health, often dominating your entire thought process. People in deep debt can find it’s the first thing they think of on waking and the last thing they think of when going to sleep. Aggressive or threatening letters from debtors or collection agencies make things significantly worse.
Ways in Which Mental Health Impacts Money
While a lack of money can cause poor mental health, a lack of mental health can also cause poor money decisions and issues with employment that make everything else worse.
Those with bad mental health are often unemployed or underemployed. While there is evidence that unemployment is bad for mental health there is also evidence that bad mental health prevents full participation in the workforce.
Those who do manage to hold a job may find that mental health impacts job performance and attendance leading to a lack of progression which means being stuck in a poorly paying job.
And even those in high-paying jobs may find that mental health issues can impact money management and spending decisions. This is particularly significant with certain diagnosable conditions. ADHD and Bipolar Disorder for example actually have direct links to overspending due to poor impulse control.
Minor mental health blips can also cause some of us to hit the stores, and while many joke about “retail therapy” shopping addictions are yet another potentially serious mental health issue.
Even if overspending is not part of your particular mental health issue, it’s possible that your poor mental health puts extra challenges around proactively planning, budgeting, investing and generally getting your finances in order.
How to Approach Your Mental Health and Money Problems
It would be ideal if society was structured both to support people with mental health problems and assist them financially, but sadly — in most countries — that’s simply not the case. There are however some steps you can take to help yourself.
If you have a diagnosed mental health condition that comes with a lack of impulse control around spending, talk to your doctor or healthcare provider. The right medication or therapeutic treatments can have a significant impact, especially with conditions like Bipolar Disorder.
Consult charities and non-profits supporting people with your mental health issues too. The non-profit Bipolar UK runs a service called PayPlan specifically aimed at helping sufferers address their financial stresses and get out of debt.
If your mental health issues are linked to addictions such as gambling, alcohol or substance abuse, there is help out there. Contact The National Council on Problem Gambling or the Substance Abuse and Mental Health Services Administration (SAMHSA) National Helpline, in the USA, or find the equivalent services where you live.
If you need to deal with institutions and organisations such as utilities companies or credit card providers who you’re struggling to pay, find out if they have a specialist team who deal with vulnerable customers. The organisation website might have information about how they can support customers with physical or mental conditions that mean they need accommodations.
Turn to family and friends if you can trust them. While the link between mental health and money is becoming more commonly talked about it’s still not widely understood by many people. You may find that your loved ones have no idea this is one of the impacts of your illness and may be more willing to help you get back on track than you realised.
Contact a credit counsellor if you need to get debt under control. One of the reasons people with mental health issues struggle so much is because they often have multiple debts and creditors pulling their limited attention in many directions. Credit counsellors can help you consolidate and reduce debt payments, making things feel much more manageable.
Prioritize mental health. This alone can seem impossible when you have financial issues. Many feel extreme guilt prioritising any kind of self-care when they should be working or side hustling to get more money. But if taking steps to improve mental health makes you better able to handle your financial issues, it’s completely reasonable to make it a top priority.
About the Author
Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen
Wealthtender is a trusted, independent financial directory and educational resource governed by our strict Editorial Policy, Integrity Standards, and Terms of Use. While we receive compensation from featured professionals (a natural conflict of interest), we always operate with integrity and transparency to earn your trust. Wealthtender is not a client of these providers.