As I was considering this topic, I thought of a meme I once saw that included the phrase, “Money doesn’t buy happiness, but it does buy tacos, and tacos make me happy.” Money doesn’t actually buy happiness. We know this because there are unhappy people with plenty of money, and there are happy people who have trouble scraping by. When we start thinking about mental health and financial wellbeing, however, we open up a door to much larger concepts that both exist across wide spectrums. In a Forbes* article, Paula Thielen talks about how problems with mental health can bring about impulsive actions that negatively affect our finances, and worries about our ability to pay for our needs and wants can create stress that negatively affects our mental health.
Veronique Greenwood takes it a step further in her Harvard Magazine** article when she says, “Financial troubles can lead to depression and anxiety, and depression and anxiety can make it harder for people to succeed economically, potentially leading to a self-perpetuating downward spiral.” She points out that research suggests that mental health care can actually help bring people out of poverty and vice versa. It may seem more obvious that financial strain can lead to increased stress, which can negatively impact our mental health or make it harder to access care. When we look at the flip side, we may not necessarily consider how struggles with mental health might result in more absences from work or missing out on money-making opportunities. In research that was conducted with families experiencing poverty in India, getting treatment for mental health conditions resulted in being able to consistently work more and paying less on their overall health care. Research that looked at providing financial assistance to families in Kenya was associated with reduced symptoms of depression. It appears that the “spiral” that Greenwood referenced can be positively affected by either helping people financially or by helping them improve their overall mental health.
Thielen recommends* emphasizing self care as an important method of improving both our mental and financial wellbeing. She recommends exercise, meditation, and spending time in our hobbies. I recently posted a blog about self care, so check that out as well for more information on the subject. Her other recommendations include:
Budgeting and planning–There are apps that can help people with budgeting. It can be a little time consuming and complicated in the beginning, but budgeting basically comes down to looking at how much money you have coming in and writing it down. Then look at where your money goes. I recommend looking first at the costs that you have to pay (house payment, insurance, bills, groceries, etc) and writing them down. Sometimes there are tweeks that can be made within these things though, like checking with your insurance provider about lower rates or looking at your bills and deciding if all of them fit under the category of need instead of want. After the “have to pay” costs are dealt with and recorded, look at the things you want to spend money on and write them down. There are some “wants” that do enrich our lives, which makes them important, but this process will also show if there are any “wants” that you can easily do without. Ideally, the budget should include a plan for savings, and a small amount of “fun money” that can be spent on whatever is desired. The goal is to figure out how to spend less than you actually make and then stick to that budget.
Automate your finances–if you have your bank account set up to pay your bills automatically, you can’t be late in your payments. This does require paying close attention to your account so that you can be sure the money is available when they attempt to draw it, but it also provides an opportunity to save.
Set regular financial reviews–if you invest in the stock market, it can be potentially unhelpful to check it every day. Even an upward trend involves some peaks and valleys, and this can create anxiety. If you have regular dates that you check your portfolio, you’ll be better able to see the trends than if you check daily.
Treat your mental health with therapy–I usually have this mentioned in most blogs, and it might seem a little self-serving since I’m a counselor, but those of us in mental health are available to provide much needed services that can help positively impact multiple areas of your life.
Meet with a financial advisor–A financial advisor can help you plan a budget, set goals for your financial future, and potentially help reduce stress.
Money may not buy happiness, but money stress can impact our mental health, and as we’ve seen, it works in reverse as well. When we get the help we need in one area, it can start to help the other.
**https://www.harvardmagazine.com/2021/05/right-now-linking-mental-fiscal-health