Finforall

21.07.2020

How Does One’s Financial Health Impact Their Mental Health

The whole world, (the internet, most of all) is talking about depression affecting the young people in our society. First things first — mental health is very real, and it is okay, no, scratch that — it’s encouraged to talk about your problems whether they are personal, related to your business, or as we are going to discuss — financial.

What Is Meant By Financial Health?

Financial health is a phrase widely used when it comes to painting the picture of an entity’s monetary affairs. We all want to ensure our financial well-being. For that, we set up monthly budgets, be on our toes when it comes to paying our bills and spend on things that lie within our means. This is rudimentary money management and the first parameter in assessing one’s financial health. Understanding your relationship with your money in terms of budgets, debts, investments, insurances and expenses, and developing an efficient plan that meets your future goals, smells of sound financial skills. With time, this will fix your financial health.

What Is Meant By Mental Health?

Mental health refers to the behavioral well-being (ability to function in the everyday environment), cognitive health (functioning in domain-specific conditions), and the emotional welfare (ability to manage stress among other emotions) of a person. The way a person feels about life, about themselves, the way they react (or don’t) to day to day events are critical variables in estimating a person’s mental health.

Your takeaway? Mental health is just as important as physical health and demands just as much care and attention, if not more.

How The Two Are Related

No points for guessing that a good number of people walking into a therapist’s office are suffering from some financial distress. Research has verified that financial health and mental health are intertwined.

One study which took into account a meta-analysis of pooled odds ratios showed a strong connection between mental disorder and debt, and that people with depression and anxiety were found to be almost 3 times more prone to be in debt.

Long before you are diagnosed with a mental illness of any kind, even a minor lapse in your mental well-being can be linked to your finances. Poor finances, in turn, can gradually drain your mental health.

 Take this, for example: have you ever found yourself buying expensive commodities (especially online) whenever you feel low? That’s your coping mechanism creating a decoy, fooling you into feeling successful, content, satisfied (choose your terminology). You overcompensate yourself for plummeting self-esteem all the time.

Coping Techniques and Potential Solutions

Fortunately, there are certain measures through you can improve your mental and financial well-being.

  • Being outgoing – Socialize with your friends, your neighbors. Find people who will support you whenever you need supporting.
  • Indulging outdoors – Engage yourself in physical activities — take a walk outside, exercise, release your stress in the gym if that makes you feel better.
  • Switching jobs – Try to find a job, or adopt a career that coincides with your passion and your personal goals.
  • Applying your finance – Let your money work for you. Go learn about finance, see how investing diligently will help multiply your money.
  • Budgeting – Save more than what you spend. Having liquid money that’s yours is perhaps the most significant promoter in climbing out of the deep pit of depression.

Basically, anything that can distract you from your present state, give you a sense of achievement, a shade of happiness, a touch of pride — do it, adopt it, and commit to it. The crux of all these points is to showing up and owning your actions. Think why should anyone else care about your welfare, if you won’t? The first step has to come from you, and unlike crabs, we will be here pushing you out whenever you decide it’s time.

The pandemic has been difficult for all of us, and that’s putting it mildly. People have lost their jobs from Covid-19, and are struggling to pay off their debts and win their daily bread. Losing a job is among the worst things that can happen to a person in their life. It almost immediately makes them question their worth, and this affects all other aspects of their life which are not even connected to their work.

But the change has begun, and we are finally talking about it more openly. It’s important that we continue to back each other during these trying times and champion our way through it.

References

 https://www.mentalhealth.gov/basics/what-is-mental-health

https://www.centreformentalhealth.org.uk/blog/centre-mental-health-blog/money-and-mental-health-breaking-toxic-relationship

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4943521/

https://www.cdc.gov/hrqol/wellbeing.htm

https://economictimes.indiatimes.com/topic/financial-health

Sharing is Caring