Mental Health .Mind Over Money:

Mental health and finances are deeply connected, often influencing each other in powerful ways. Financial stress—such as struggling to pay bills, managing debt, or feeling uncertain about the future—can lead to anxiety, depression, and sleep problems. At the same time, mental health challenges can make it harder to manage money effectively. For example, conditions like depression may drain motivation, making it difficult to stay on top of budgeting or financial planning, while anxiety can lead to avoidance behaviors around opening bills or checking bank balances.

This cycle can create a feedback loop where poor mental health worsens financial struggles, and financial struggles worsen mental health. People under financial pressure may feel isolated or ashamed, which can discourage them from seeking help. Additionally, impulsive spending or financial decisions made in moments of stress can add to long-term burdens, creating even greater strain over time.

On the positive side, improving either area can support the other. Building financial literacy, setting small and realistic financial goals, or seeking professional advice can reduce stress and create a sense of control. Similarly, investing in mental health—through therapy, mindfulness practices, exercise, or community support—can help individuals make clearer, more balanced financial choices. Recognising the link between the two allows for a more holistic approach: treating financial well-being as part of overall mental health, and mental health as an important factor in financial stability.

Research consistently shows that financial strain and mental health are closely intertwined. According to the American Psychological Association, money has been one of the leading causes of stress for adults in the United States for over a decade. High levels of financial stress have been linked to anxiety, depression, and lower overall well-being. At the same time, mental health challenges such as depression, ADHD, or chronic anxiety can impair decision-making, motivation, and focus, which makes financial management more difficult. This creates a two-way relationship: poor finances can worsen mental health, and poor mental health can in turn worsen finances.

On a practical level, this cycle often shows up in everyday habits. Someone experiencing depression may lack the energy to pay bills on time, leading to late fees and worsening debt. Anxiety can lead to avoidance behaviors, such as not checking bank accounts out of fear of what they might find. In other cases, financial stress may trigger impulsive spending as a way to temporarily cope with overwhelming emotions. Over time, these behaviors deepen both financial and psychological struggles, making it harder to break free.

However, there are strategies that can help. Seeking professional support—whether from a financial advisor, therapist, or support group—can provide structure and encouragement. Simple steps like creating a budget, automating bill payments, or setting aside even small amounts in savings can build confidence and reduce stress. On the mental health side, practices such as mindfulness, regular exercise, and therapy can improve resilience, which in turn makes financial management feel less overwhelming. By treating financial health as part of self-care, and mental health as part of financial planning, people can begin to break the cycle and build stability in both areas.

Practical Tips for Balancing Mental Health and Finances

1. Start small with financial steps

• Automate bill payments where possible to avoid late fees.
• Begin saving with very small amounts (even £5–£10 per week) to build the habit and reduce pressure.
• Use simple budgeting apps or even a notebook—whichever feels less overwhelming.

2. Manage financial stress mindfully

• Schedule a specific “money check-in” time once a week to look at your finances, instead of avoiding them.
• Pair financial tasks (like checking your bank account) with something positive, such as listening to calming music.
• Practice mindfulness or breathing exercises before making big money decisions.

3. Protect your mental health while planning finances

• Avoid comparing yourself to others; financial situations are unique.
• Set realistic goals—such as paying down one small debt before tackling larger ones.
• Celebrate progress, even if it feels small (like paying a bill on time).

4. Seek support

• Talk to a trusted friend or family member if financial stress feels isolating.
• Consider professional help: a therapist for mental health, or a financial counselor for budgeting and debt management.
• Look into community resources—many nonprofits offer free or low-cost financial coaching.

5. Build healthy habits that support both areas

• Exercise, sleep, and proper nutrition improve mental health and support better decision-making.
• Journaling can help track both moods and money habits, showing how they affect each other.
• Limit impulsive spending by using a 24-hour rule before making non-essential purchases.

© William Sinclair Manson 2025