In honor of Mental Health Awareness Month, I would be remiss not to discuss the connection between money and mental health. While money is often seen as a means to an end, especially happiness, it can significantly impact our mental wellness. Conversely, our mental health can also affect our financial stability.
According to a recent survey conducted by the American Psychological Association, 72% of people reported feeling stressed about money, and 29% believe better job security would help reduce their financial stress; 32% of Americans consider money a major source of conflict within their relationships, a figure that rises to 59% among millennials.
Low income, debt, and job loss can create financial stress, which can lead to psychological distress, anxiety and depression. Studies demonstrate that the risk for depression is greater for low income households, or those who make less than $14,500 per year.
Financial stress can impact not only our mental health but also our physical health. High blood pressure and heart disease are just a few diseases linked directly to stress about money. Moreover, financially stressed people may struggle with sleep. Among self-rated poor sleepers, close to two-thirds are concerned about their financial future, and more than half live paycheck to paycheck. Lack of sleep can further exacerbate physical and mental health problems and make it more challenging to manage stress.
Now let’s look at how mental health can affect our financial stability. For example, mental health problems such as depression and anxiety can make it difficult to maintain employment because it can reduce employee productivity, general attitude, and punctuality. In severe cases, mental health problems can result in hospitalization, and a physical inability to work, further exacerbating financial stress. It’s a vicious cycle.
Additionally, individuals with mental health problems may find it difficult to manage their finances effectively. This can result in overspending, neglecting bills, and other financial problems that can compound stress and anxiety. Impulsiveness and overspending are known symptoms of bipolar disorder and ADHD.
So, what do we do?
First, employers can offer mental health support for their employees, such as counseling services or flexible work arrangements. Half of employees say they are less productive at work because of financial stress. This directly impacts productivity and the bottom line of any business. Thus, it is in the interest of business owners to support the mental health of their employees.
Next, social programs that provide financial assistance to people who are struggling, such as unemployment benefits or affordable housing can also be useful.
Seeking professional help from a mental health provider or financial counselor as soon as we feel these stresses coming on is a must. These professionals can guide their clients through applying stress management skills, developing effective financial habits, and addressing mental health problems.
Another approach is to prioritize self-care, such as proper diet, getting enough sleep, exercising regularly, and engaging in activities that promote mental well-being, such as meditation and yoga.
And let’s not forget the importance of financial literacy and developing effective financial habits. Budgeting and utilizing financial tools and resources are crucial to developing smart financial habits. This can include creating aggressively paying off debt to reduce the looming burden carried by 77% of Americans.
For any of the above to work, however, reducing the stigma associated with mental health is crucial in ensuring that individuals receive the support and care they need. Efforts are being made globally to raise awareness, educate the public, challenge stereotypes, and promote acceptance and understanding of mental health conditions.
Encouraging open conversations, portraying accurate and positive representations in media, and advocating for equal rights and opportunities for individuals with mental health issues are some strategies used to combat stigma.
Whichever path one chooses, either one or all, it is imperative to understand there is no shame in proactively tackling your mental health and seeking outside help as early as possible to reduce the negative impact on your life, with the understanding that it’s never too late. Because financial wellness is directly interconnected with mental wellness.
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