Approximately 20% of adults are impacted by mental illness.1 If you, or someone you know, are struggling with mental health, you may find financial health suffers as well. Why? Because there’s a direct correlation between mental wellness and financial wellness. In fact, a recent study found that individuals with depression and anxiety were three times more likely to be in debt.2 Here’s an explanation of how health and wealth often go together.
Avoidance of Problems
Money is the second most common source of stress amongst adults.3 Therefore, it makes sense that dealing with bills, debt, and budgeting is stressful. If you’re already feeling unwell, avoiding additional stress is understandable.
The issue is avoiding financial obligations won’t make them go away, and in many cases, 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 as though 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, to say the least.
Loss of control often leads to the urge to spend. When everything else seems to be 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. Impulsive spending, with 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.
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 may not want to spend it on addressing your financial obligations. Financial well-being requires action and focus, especially if you are faced with a large amount of debt or a substantial long-term savings goal.
Hard to Think Clearly
When you’re not feeling your best, making sound, rational decisions can be challenging. Your judgment may be clouded by how you’re feeling right now, meaning it’s tough to try to think about your future - especially your financial future.
It’s likely the events of this past year have challenged your mental health in some way, and it’s okay to not be okay. If you’ve found that your financial wellness may be suffering because of your mental health, reach out to your trusted financial partner. They can help keep your spending and saving 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. 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.