FINANCIAL WELLBEING AND MENTAL HEALTH

FINANCIAL WELLBEING AND MENTAL HEALTH

When it comes to mental health, money is one of the most significant stressors. Studies have indicated that aspects like financial safety, financial capability, and financial distress can have an impact on mental health, which can in turn, lead to physical distress as well.
 
Financial wellbeing has thus become a growing priority at the workplace as well. Debt, financial instability, or worrying about money can serve as a distraction, and ends up hindering productivity. It can also lead to anxiety, depression, and stress. Chronic stress can result in problems like headaches, cause high blood pressure, and a weakened immune system. Common stress triggers related to finances can include changes in income, unexpected expenses, financial pressure and debt, limited financial resources, and personal challenges, among others.
 
Thus, whether it’s about managing daily expenses, addressing unexpected financial obstacles, or building a healthier financial future, being in control of your financial wellbeing is the need of the hour. Let’s explore the relationship between money and mental health, signs of financial distress, and the smart choices we can make towards financial wellbeing.

The relationship between financial stability and mental health

Financial stress can have adverse effects on one’s mental health. Having to deal with debts, expenses, personal finances and/or investments might cause panic or anxiety. Overindulging might cause feelings of guilt or shame. Financial stress can even lead to physical problems like trouble sleeping, and situational ones like strained relationships, and can even impact your social life. Having a plan when it comes to managing this major stressor is crucial for both a healthy mental and physical health.

Signs of financial distress that might often go unnoticed

One important way to manage your financial distress is to first and foremost recognise and acknowledge the way you feel about and deal with money. Often, people might just generally feel like life is hard without realising just how much of an effect financial stress has on their mental and even physical health. Here are some of the common signs that might often go unnoticed:

1. Feeling anxious or restless about money even during unrelated events and activities.

2. A racing heart, aches, pains, and other symptoms when thinking about finances.

3. Avoiding or postponing financial transactions or decisions like paying bills, making purchases, or communicating with creditors.

4. Feeling overwhelmed and like you cannot keep up, don’t know where to start or what to address first.

5. Feeling ashamed, guilty, or embarrassed about your financial situation.

6. Trouble sleeping due to money worries.

7. Difficulty enjoying other areas of life because of financial stress.


 

 Easy and practical tips on building financial resilience

While you might not be able to fully control every circumstance that has an impact on your financial situation, here are some practical ways you may build financial resilience:

1. It begins with communication - There are often feelings of shame associated with talking about finances with trusted friends, family members, or mentors. Money is a major part of one’s life and it has an impact on every aspect. This is why you can start out with seeking the help and advice of those you can trust - you never know, you might stumble on creative solutions to better manage your finances.

2. Seek professional advice - A financial advisor will be able to evaluate your current financial situation and help set small goals, put together a monthly and emergency budget, help create a debt repayment plan, and offer practical advice for the future. They can help maximise assets and minimise liabilities in the long run which is why they might be worth considering.

3. Manage your finances - Being mindful of your spending patterns daily can go a long way. Ensuring you list all your income sources, keeping a track of all your spending, honestly listing all your debts, identifying spending patterns and triggers like boredom or stress, making small changes like cutting down nonessential spending, and eliminating impulse buying are some ways you can take better control of your financial fate.

4. Map out your financial situation - Making an inventory of your finances where you provide details of your income, expenses, and debt for the course of at least one month, helps a lot. You can also work backwards by trying to understand previous expenses by examining bank statements and receipts. Keeping a future track of this might feel overwhelming, which is why you can even consider automating finances - both bills and savings - to develop a sense of control and discipline towards your finances.

5. Consider workshops and courses - Financial experts provide a wealth of information and smart solutions for managing finances. It is wise to engage in continuous learning and educate yourself about how to better manage your finances from time to time. Be on the lookout for workshops and consider signing up for courses that are centred around budgeting, debt management, investment strategies, and retirement planning.

While finances are a major concern for many, acknowledging your current financial situation and taking the steps to address it can go a long way. No matter how overwhelming the situation may seem, there is light at the end of the tunnel. Dealing with one of the most important stressors of life can help lift a great weight off your shoulders and pave the way for a happier, healthier life.
 

 
Disclaimer: The information provided in this blog is for general information purposes only and does not constitute professional advice. Readers are advised to (i) obtain independent professional advise before making any decisions related to or arising out of this blog article (ii) carefully review their health insurance policy terms and conditions to understand their applicable coverage scope (as some benefits may or may not be applicable to you), limits, and exclusions. Sukoon Insurance PJSC does not make any representation or warranty of any kind in relation to this article/blog post including that any of the data, information, materials on this blog article are accurate, reliable, or complete. Sukoon Insurance PJSC hereby disclaims any and all responsibility or liability of any kind for any direct or indirect damages or losses of any kind caused to you in relation to or arising out of this blog article.