Understanding the Correlation Between Mental & Financial Health
Approximately 20 percent of adults are impacted by mental illness.1 If you, or someone you know, is struggling with their mental health, you may find financial health suffers as well. Why? Because there’s a direct correlation between mental wellness and financial wellness. A recent study found that almost half of all people with debt problems also have mental health problems.2 Here’s an explanation of how health and wealth often go hand-in-hand.
Avoidance of Problems
Money is the most common source of stress among adults.3 Therefore, it makes sense that dealing with bills, debt, budgeting, and investing is stressful. If you’re already feeling unwell, avoiding additional stress is understandable.
The problem is that avoiding your financial obligations won’t make them go away. And in many cases, it can make them worse. The temptation to push aside bill paying or phone calls to the credit card company is strong, but tackling these tasks on time or right away can create long-term relief.
Feelings of Hopelessness
When your mental health is struggling, it can be hard to think long-term. If you feel you’re losing control of the things around you today, what’s the point in trying to work toward future goals? Feelings of hopelessness can occur, and they can make long-term financial decision-making tough.
Impulsive Spending
Going hand-in-hand with loss of control is the urge to spend. When everything else seems spiraling, making a purchase can feel like something you have control over. The problem is, of course, this can lead to impulse buying - which can wreak havoc on your budget and increase debt. A lack of focus on facing your financial situation head-on could create a harmful cycle of spending more than you have while neglecting to address the accruing debt.
Decreased Energy
If your mental health is suffering, you’ll notice your energy levels decreasing as well. Fatigue, trouble sleeping, and lack of focus can all be common symptoms of declining mental health or stress. With what energy you do have, you likely don’t want to spend it on your financial obligations. But your financial well-being requires action and focus, especially if you face a large debt or a substantial long-term savings or investing goal.
Hard to Think Clearly
Making sound, rational decisions can be challenging when you're not feeling your best. Your judgment may be clouded by your current feelings, making it tough to think about your future—especially your financial future.
The events of these past several years have likely challenged your mental health in some way, and it’s okay not always to be okay. If you’ve found that your financial wellness may be suffering as a result of your mental health, reach out to a trusted financial partner. They can help keep your spending, saving, and investing on track today while encouraging healthy financial habits that keep your long-term goals a priority.
This content is developed from sources believed to be providing accurate information, and provided by Meenes Wealth Partners. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.