Being happy with your finances is no different from being happy with your health. Both the amount you have and the way you spend it have a huge effect on your mental health. This article will outline some of the surprising ways that money can affect your mental health.
Healthy finances aren’t about having a lot of money, they’re about having the right amount of money. Having too much can cause stress, anxiety and depression, while having too little can mean you’re not able to meet your basic needs, leading to feelings of hopelessness, helplessness and defeat.
Money gives us a sense of security, but also adds pressure, and can affect our ability to think calmly and make smart decisions. A new study suggests that money can actually be a factor in major mental disorders like anxiety and depression. In fact, among the general public, lack of money can be a risk factor for major mental disorders.
Whether we like it or not, money is a part of our lives. We need money for basic needs – food, shelter and clothing – but it also covers other essentials like cars, electronics and entertainment. As a result, we often think about money and become stressed, which can affect our mental health. According to the American Psychological Association, 60% of American adults consider money a major source of stress. According to the charity Money and Mental Health, people with mental health problems are also three and a half times more likely to have debt problems. What’s the solution? You can learn to manage your money and find ways to live between paychecks to lower your stress level. You can also identify which financial habits are causing you stress in the first place and then take steps to reduce the stress they cause. In this guide, we’ll look at 15 ways money affects your mental health and give you practical tips you can use to lower your overall stress levels. This will help you identify the pain points in your financial situation and encourage you to take steps to reduce stress and improve your mental health. See also: 8 smart moves when you have $1,000 in the bank Photo credit: DepositPhotos.com.
Cost overruns can become a vicious circle. You can spend money to relieve stress in the moment, but it will lead to more stress in the long run because you spent too much money. Excessive spending can easily lead to debt, which is a huge stressor. The answer to overspending is very simple: Don’t spend money you don’t have. However, this solution is not always the easiest to implement. However, you can start with a small step to counteract this habit. Consider creating a budget so you know exactly how much you are spending and where the money is going. This will help you be more focused and present when it comes to your finances. Once you know how much money you need for basic needs, including savings and emergency funds, you can plan your remaining funds for leisure and purchases. It can also be helpful to know how to make extra money on top of your main source of income. This can help you balance your spending habits and give you some extra money to use in your budget. Photo credit: DepositPhotos.com.
2. Paying unnecessary bills
Seeing a bill in your email or mailbox is stressful because you know you have to pay it if you don’t want collection agencies coming after you. Some bills are necessary, such as B. Utilities, but many bills and subscriptions may not be used or are not worth paying. To reduce the stress of your bills, cut out subscriptions and other monthly or annual bills that you don’t need. Today, we have access to a wide range of subscription services, and the recurring costs of these can add up quickly. Ten dollars a month for one subscription becomes much more significant when you multiply it by three or more subscriptions. Photo credit: travellinglight / istockphoto.
3. Overpayments onaccounts
Sometimes you can just overpay your bills. Have you ever seen your cable or internet bill go up every month while you haven’t changed service? It’s not uncommon for monthly bills to rise, which can also increase stress when payments get out of hand. Did you know you can check your bills? A call to a cable or phone provider can be stressful in itself, but a quick phone call can reduce your stress for months and years to come. Or you can simply use a service like Truebill to do the trading process for you. Truebill, which you can sign up for for free, helps you identify unnecessary bills and negotiates the cost of certain utilities on your behalf. Photo credit: DepositPhotos.com.
For one reason or another, you may be in debt. Debt is not uncommon, but being in debt is not a pleasant feeling. You feel like you’ve lost your financial freedom and are stressed because you owe someone money. The best way to reduce this stress is to get out of debt. But if it were that easy, everyone would pay their debts immediately and feel happier. If you feel like your debts are out of control, consider consolidating or settling them. Otherwise, stick to a set budget and pay off your debts as soon as possible. As you see your debt gradually decrease and eventually disappear completely, your stress level will drop dramatically. Photo credit: DepositPhotos.com.
5. Not recorded
You know that you need to put money aside as savings in case you need it in the future. But it’s not always easy to reach that financial position where you have enough savings to be comfortable. Realizing that you don’t have a lot of savings can be stressful, especially if you don’t know how to handle the situation. To get a better idea of your savings, start small. Even saving a few dollars at a time can begin to increase the amount, and it will get you in the habit of constantly thinking about increasing your savings. Once you have slightly increased your savings, consider a high interest savings account or other financial instruments to maximize your deposits. One way to start saving is to use Digit. Digit is a financial app that analyzes your spending habits and automatically takes extra money from your available funds and deposits it into an FDIC-insured account. If necessary, you can withdraw money from your Digit account. Digit takes the stress out of saving because the process is automatic and you don’t have to think about almost anything. Photo credit: istockphoto/Prostock-Studio.
6. Use of credit cards
Credit cards can be a great financial tool when used properly, but they can also cause a lot of stress if you don’t understand them. People often think they have more money than they actually do because they have credit. Or they only pay the minimum amount of their monthly bill and don’t realize that the interest that accumulates each month is costing them money. Unfortunately, these are just a few of the many money mistakes people make. In general, don’t get into debt if you don’t have a solid plan to get out. And if you want to take out a loan, make sure you do so with one of the best credit cards with a 0% APR. If you use a credit card, read the terms and conditions before applying and ask about any fees. Then make sure you pay off the balance as much as possible each month. This will help you avoid long-term debt and lower your stress levels. Photo credit: Farknot_Architect / istockphoto.
7. High interest payments
It’s often frustrating to find that most of your monthly payments are going towards interest payments instead of paying off your debt. This can lead to a lot of stress when you see how long it will take to pay off your debt when high interest rates take up most of your payments. To reduce stress, try negotiating lower interest rates on your debts. Depending on how long you have been with the financial institution and your customer history, you may be able to call and get a lower interest rate. Depending on your debt, you may also consider refinancing your loan to get better terms. Photo credit: bunditinay / istockphoto.
8. Focus on your credit history
It is a good idea to check your credit history regularly, as a good credit history opens up many financial opportunities that you may not have. But if you stick to your credit history, you may do more harm than good. Your finances are important, but so is a happy and fulfilling life. Credit scores fluctuate, so it’s no big deal if they go up or down a few points from time to time. To avoid worrying too much about your credit score, learn the basics of a good credit score and know how to get one. This will help you form habits to keep your credit score high, without having to think about it all the time. Photo credit: GCShutter.
9. Missed payments
A missed bill or credit card payment can be extremely frustrating and stressful because of the consequences. If you miss a few payments, your credit rating may suffer or you may have to deal with a collection agency. You may also pay a higher arrears fee or receive a higher penalty interest rate. But this stressful situation is usually avoidable. If you have already missed a payment, you usually have no choice but to accept the consequences and move on. To make sure you don’t miss future payments and keep your stress level under control, you can set up reminders. Most major financial institutions offer expiration date alerts that you can set on your online accounts. You can also set up automatic payments for specific accounts, completely eliminating the risk of missing a payment. Reminders and notes in the phone also work. Like a note on the fridge or in the diary. Whatever works for you is the best way to avoid missed payments and the stress they can cause. Photo credit: artisteer / istockphoto.
10. Payment of unnecessary fees
Have you ever had to deal with unexpected late payment charges or a fine for an uncollectible balance? The terms of most loan products and bank accounts are available to everyone, yet they can be confusing. If you are accused, you may not understand why it happened and it is stressful. You may even feel financially incompetent or stupid for allowing this to happen. The best way to avoid future charges is to read all contracts and agreements carefully before taking out a credit card, loan or other financial instrument. If you are a new customer of the financial institution, you can call and ask for an explanation so that the fee can be waived. It’s also a good opportunity to learn more about how taxes work so you’re better prepared for the future. Photo credit: DepositPhotos.com.
11. Not promoted
Not getting a raise at work doesn’t necessarily mean you’re not doing your job well. However, this can seem like the case because it seems like the effort you put in isn’t worth much. This can affect your self-esteem and increase your stress. To counteract this, it is best to speak clearly with your supervisor or manager. If you were expecting a pay raise but didn’t get one, try to figure out why. There is no easy way to do this except to expose everything. Even if you don’t get a raise, clear your head and stop thinking about it, which will have a miraculous effect on your stress levels. It also allows you to decide what you want to do next. Photo credit: DepositPhotos.com.
12. No sleep
Your money problems can literally keep you up at night and pose a significant risk to your health, both physically and mentally. If this is the case, you are clearly stressed enough to do something to stop losing sleep over your money worries. The best way to do this is to identify the problem that is causing your stress. If it’s a debt, what’s the cause? You’re not going to spend too much? Did you lose your job? Are interest rates too high? Whatever the problem is, it must be identified. Next, you need to make a plan to work on your problem. For example, you can get into debt because you buy too many things. You may need to make drastic changes to your lifestyle. If you have a plan, you can put everything on the table and work tirelessly towards your goals to overcome what is stressing you out. Photo credit: monkeybusinessimages / istockphoto.
13. Looking for a new job
Whether you are looking to change careers or have been laid off, finding a new job can cause a lot of stress and anxiety. When you stay at work for a while, you get into a certain modus operandi. You are familiar with your tasks and you know the people you work with. Searching for a new job involves looking at job postings, attending interviews, possibly acquiring new skills, etc. There may be an error or an inappropriate option. You may also have no income while you are looking for work. To make it easier, make a list of what you hope to get out of your new position. Maybe a certain salary, the type of work you will be doing, the size of the company, and anything else you can think of. This will help take the uncertainty out of your job search. Also, do your best to research potential employers, especially before the interview. The better you prepare for a good job interview, the more likely you are to succeed. Being prepared can also significantly reduce your stress level by helping you stay focused and prepared. Photo credit: Pictures of the promise.
14. Reading bank statements
When you’re trying to manage your finances, reading an opaque bank statement can be stressful. There’s a lot of information, and you know it’s important, but you don’t understand what it means, and that’s frustrating. You can always call your bank and get the items on your statement clarified. There is no need to feel uncomfortable in doing so, as you try to understand the information you are given to better manage your finances. Finally, a quick and informative phone call or conversation with a helpful staff member can provide you with additional knowledge and reduce your stress level. Photo credit: artisteer / istockphoto.
15. Being too frugal
It may sound unusual, but being too frugal with your purchases and other expenses can be a source of stress in your life. It makes sense to look for bargains and keep your costs down, but that doesn’t mean you always have to find the best deal for everything. The time you spend being frugal ends up costing you your own money. It makes sense to cut back to reduce financial stress, but constantly fretting over frugality can also increase stress levels. It can be helpful to find a happy medium so you don’t have to worry about every little detail, but also so you don’t overpay. Find something you like and spend money on that from time to time. This will help lift your spirits without breaking the bank. Photo credit: John_Brueske / istockphoto.
If you haven’t noticed how money can affect your mental health, take a step back from time to time to assess your situation. Money is important, but not as important as your mental health. Review the options we’ve listed to find the ones that will help you take action and create a better balance between your finances and your mental health. More from FinanceBuzz.com: This article was originally published on FinanceBuzz.com and syndicated by MediaFeed.org. Photo credit: gradyreese. AlertMeFrom the small touches to the big ones, money can have a big impact on our mental health. And often those effects are surprising.. Read more about mental illness and debt forgiveness and let us know what you think.
Frequently Asked Questions
How does money affect mental health?
Money can make or break your mental health and happiness. It can help you cope with difficult life situations, or it can exacerbate your anxiety and depressive feelings. Money can be a source of immense joy and satisfaction, or it can cause great stress and depression. The ease with which we can obtain it varies also, as there are advantages and disadvantages to earning almost everything we need. But all of these points of view can be thrown out of the window if you have enough money to do anything and everything you want.
How can money affect your health?
It may seem like money can’t have an impact on your health, but without it, you might not be able to afford healthy groceries—or in some cases, food at all. Even if you aren’t concerned about money affecting your health, you may be concerned about how your parents’ financial situation has affected theirs. If your parents are struggling financially, what are the chances your life will be affected as well? Money can affect your mental health in a variety of ways. Studies have shown that lower income families are more likely to suffer from depression and anxiety disorders, and that people with low social status are more likely to have anxiety disorders. Another study found that people with higher self-esteem and social support are less likely to develop depression.
How does financial status affect a person?
So you have found out that you are in debt. You are not alone. Too many people are swept into debt by a number of different reasons and from different causes. Resolving to get out of debt can take time, but the good news is that the debt you have now can often be resolved without having to pay any money. Here are five ways to resolve debt and get on with your life. Income is a good thing, right? It signals economic health and success. When we’re flush with cash, we can take care of our families, buy the things we want, and travel the world. But income alone doesn’t tell the whole story. It’s also important to look at financial status—the income that’s available to you and the challenges that stand in the way of your financial goals.
money and mental healthmoney and mental health statisticsmental illness and debt forgivenesshow does money affect mental healthdebt and mental health statisticsmental health and money advice,People also search for,Feedback,Privacy settings,How Search works,money and mental health,financial stress and mental health statistics,money and mental health statistics,mental illness and debt forgiveness,debt and mental health statistics,mental health and money advice,financial stress impact on mental health,debt and mental health guidelines