As we celebrate Mental Health Awareness Month this May, it’s important to recognise the undeniable connection between financial stability and mental health. According to a survey conducted by the National Endowment for Financial Education, financial stress is one of the top causes of anxiety and depression with 88% of respondents reporting that it negatively affects their mental well-being. And according to the National Alliance on Mental Illness (NAMI), 1 in 5 adults’ experiences mental illness each year.

But how exactly does financial instability lead to poor mental health?

For starters, when people experience financial difficulties, they often feel a sense of shame or guilt which can lead to feelings of isolation and anxiety. In fact, studies have found that individuals who experience financial stress are more likely to suffer from depression, panic attacks and other mental health issues. Moreover, financial instability can cause physical symptoms such as headaches and fatigue that can exacerbate an already challenging situation.

The good news is that achieving financial stability is possible and it can significantly improve one’s mental well-being. Here are some practical tips to help you get started:

● Create a Financial Plan: A comprehensive financial plan that outlines your short and long-term financial goals can help you stay focused and organised. It’s important to consider your current financial situation, your future goals and your risk tolerance when creating your plan. Seeking professional advice from a financial advisor can help you make informed decisions about your financial future.

● Build an emergency fund: An emergency fund can provide you with financial security and peace of mind. It’s recommended to save at least six months’ worth of expenses in a separate savings account. This will help you weather unexpected financial challenges, such as job loss, medical expenses, or a major home repair.

● Manage Your Debt: Debt can be a significant source of stress and financial insecurity. Develop a plan to pay off your debts, starting with the debt that has the highest interest rate. If you need assistance, consider seeking help from a credit counselling service or financial advisor.

● Invest in your future: Investing in your future can reduce financial stress and provide security. Explore different investment options such as a retirement account or other investments and seek advice from a financial advisor to make informed decisions.

Many people face a sense of shame or embarrassment about their financial struggles, causing them to suffer in silence. Remember, facing financial challenges doesn’t make you weak but seeking assistance shows incredible strength and courage.

Fortunately, several resources are available to assist individuals struggling with financial stress and mental health issues. Seeking professional help from a therapist, support groups or financial counselling services can provide the necessary support and guidance to overcome financial challenges and improve mental well-being.
Additionally, innovative solutions like earned wage access (EWA) are emerging as a popular solution for individuals facing financial hardships. Providers such as EZ Wage and Wagestream are rapidly gaining traction as they provide financial flexibility and allow individuals to access their earned wages when needed, reducing financial stress and improving mental health.

By consciously taking strides towards attaining financial stability and placing a significant emphasis on nurturing mental well-being, individuals pave the way for a more rewarding and prosperous future. Through intentional actions and mindful choices, they unlock the potential for long-term success and personal fulfilment.

Together, let’s embrace this empowering journey of growth and embrace a brighter, bolder tomorrow!