The Complex Relationship Between Finances and Mental Health

It is no secret that financial well-being and mental health are closely linked. Poor monetary well-being can lead to increased levels of stress and anxiety, which can, in turn, hurt mental health. Conversely, good financial well-being can help to reduce stress and promote good mental health.

Money is a common stressor in people’s lives. Worrying about money can lead to mental health problems such as anxiety and depression. Seasoned debt consultants point out that financial issues can worsen mental health problems. 

Financial well-being is vital for mental well-being because, as mentioned, money problems can cause stress, anxiety, and depression. They can also make existing mental health problems worse. This blog untangles the complex relationship between debt and mental health.

How Does Financial Well-Being Affect Mental Health?

It is no secret that financial well-being and mental health are closely linked. Numerous studies have shown that financial stress can affect mental health, causing problems like anxiety, depression, and even substance abuse. Debt consultants have witnessed these first hand.

How exactly does financial well-being affect mental health? For one, financial stress can cause a great deal of anxiety. Worrying about money can keep people up at night, cause irritability, and affect concentration and productivity during the day. 

Furthermore, financial problems can lead to depression. When one cannot make ends meet, it can be hard to see the light at the end of the tunnel. It can cause hopelessness, worthlessness, and despair. 

Finally, financial troubles can lead to substance abuse. People may turn to drugs or alcohol to cope with the stress of financial problems. It can create many other issues, including addiction, financial ruin, and health problems.

The Mental Health of Financially Struggling Young Workers

There is no question that financial struggle can take a toll on mental health. For young workers, who are often just starting their careers, the stress of making ends meet can be overwhelming. 

According to a recent study, nearly half of young adults globally have experienced mental health problems due to financial stress. Psychiatrists and debt consultants researched that almost half of millennials report experiencing anxiety and depression due to money problems. Moreover, the study found that millennial women are particularly prone to financial-related mental health problems, with more than half reporting such issues. It is likely because women still earn less than men, on average, and are more likely to be working in low-paying jobs.

The Covid-19 Factor

The pandemic has forced people to confront death, which can lead to feelings of anxiety and depression. Many people are struggling with jobs, finances, and the overall stress of the situation. The lack of social interaction and increased stress levels can lead to mental health problems.

It causes anxiety, depression, hopelessness and isolation. It is crucial to find ways to cope with these feelings and to reach out for help if needed. There are many resources available to help people during this difficult time.

Conclusion

Financial well-being has a significant impact on mental health. Financially secure individuals are more likely to have positive mental health outcomes than those who are not. It is expected because financial security provides a sense of stability and control, which are both critical for mental health.

While it is not possible to be financially secure all the time, some steps can be taken to improve one’s financial well-being. These include budgeting, saving, and investing in oneself. 

If you struggle to take your financial footing even after the government has lifted the rigid Covid restrictions, you should consult Debt Helpers. As debt consultants, we can help you through these troubling times by freeing you from your debts. So, book a consultation now!