Understanding How Money Worries Affect Your Mental Health

Mental health affects many people in the UK and there are countless causes. It’s estimated that roughly one in four people will experience at least one kind of mental health problem every year. This figure is rising and one of the reasons for that is the extent to which money worries affect your mental health.

This is especially true in 2023 with a cost of living crisis still affecting many people’s finances up and down the country.

As some people may struggle to understand the link between money and mental health, we’ve put together a guide on why they’re connected and what can be done for those having money woes.

Read on to find out more.

Stress and anxiety

With bill price hikes affecting most households in the UK, knowing whether you can make all of the necessary payments to keep your water, heating and electricity on, as well as pay your rent or mortgage and buy food can lead to severe levels of stress. This can then lead to isolation if you don’t ask for help as you may try to avoid plans, so you don’t have to speak to anyone about your financial situation.

The stress and anxiety caused by money worries is one of the reasons why we should start teaching children about money when they are quite young. This will help them cultivate a healthy attitude to spending and saving and, if the family is going through a tumultuous time because of financial issues, it will help them understand that they might not be able to instantly get everything they ask for..!

Difficulties budgeting

When money issues have made you depressed or anxious, it can make it difficult to manage your finances effectively. This is because you may lack motivation and believe it’s not worth trying as it won’t get you anywhere. You could also spend money on non-essential items to give you a brief high but this might lead to you being unable to repay your bills.

When people are in this depressed state with money worries, they often resort to buying cheap food and ready meals. Sadly this exacerbates the problem as a lack of good nutrition affects health and wellbeing and can begin a downwards spiral of health issues.

Focusing on a plant-based, whole food diet will not only improve your health but with a little bit of effort and determination to cook from scratch, you’ll be able to produce tasty meals and save on your shopping bills. And if perhaps you can grow some of your own foods, even if just herbs on the kitchen windowsill, you’ll be saving a little more money and feeling good about yourself.

Salary impacts

Those suffering from depression and anxiety are also estimated to have an income that’s just under £8500 less than the median annual income of those without these mental health problems. This makes staying on top of finances even harder as you’re starting off with more of a challenge, so facing your issues head-on may be the only way to get out of this rut and stopping money worries affecting your mental health.

Facing your money problems

It may seem scary to begin with, but tackling your money issues is the best way to boost your mental health and get your finances back on track for the future. Some of the things you can do to start is create a budget – and stick to it, save so you can pay off your debts consistently and build your credit score up to achieve a better financial position. This is particularly important for anyone currently renting who may want to ensure they can get the best mortgage deal if they are considering buying their own home in the future.

As you can see, the links between mental health and money are close and if you don’t face them, then you may find yourself in a mental and financial situation that you don’t want to be in. Try not to ignore them, speak to friends or family members and try our tips for handling your money better and you can be confident that you’ll get out of this negative headspace caused by money worries.