As we move further into the new year, many of us are striving toward meeting specific financial goals. Whether it’s eliminating unnecessary expenses like monthly subscriptions or memberships or being more proactive in your savings planning, making positive changes in order to start the new year out on the right note, financially, is a goal for many.

It’s probably not surprising to learn that your financial habits and well-being directly affects your mental well-being. The connection between money and mental health is strong — and it is typically cyclical. When you’re in a great place mentally, you’re able to make strong, sound financial decisions. And when your financial health is great, it positively impacts your mental health; but when you’re struggling with finances, your mental health generally takes a hit. And this hit is extra difficult to get over, only compounding the stress of a poor financial situation.

Further proof that there’s a connection between financial and mental well-being? Those experiencing financial instability often also deal with:

  • Depression and anxiety: Feeling out of control financially for an extended period of time can lead to depression and anxiety.
  • Social withdrawal: Trying to save money can create loneliness, as social outings and trips, etc. are out of the budget.
  • Insomnia: Money problems often lead to lack of sleep, as the mind races trying to find solutions to the problem. Which then leads to:
  • Fatigue: The physical reminder of the cycle of worry and stress often shows itself in a bone-deep fatigue.
  • Feelings of insecurity: Worrying about not being able to cover your monthly costs or provide food, shelter, and other necessities for your loved ones can cause your self-esteem and confidence to suffer.
It’s certainly a process to solve deep debt and begin establishing healthy financial habits, so being patient is key. Begin by making a repayment plan, setting savings goals and holding yourself accountable by involving a loved one in your plans. If your financial goals are more short-term, like canceling subscriptions and cutting small expenses, start slowly but stay firm in your decisions.

There are many resources available, depending on the types of financial problems you’re facing, with organizations dedicated to helping get people back on their feet. And don’t underestimate the power of putting some self care routines in place as you stabilize your financial AND your mental health. Don’t be too hard on yourself, and ask for help if you need it.

The connection between financial well-being and mental well-being