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Wellness. It’s definitely a buzz word these days. You’ll find it hashtagged, TikTok’d, fyp’d, ‘Grammed, blogged, headlined…you get it. All for good reason too. Wellness isn’t simply a set of practices; it’s a state of being. And it touches every single aspect of your life. 

Wellness encompasses not only physical health but also mental, emotional, and financial health. While the most focus lands on eating right, exercising, and getting enough sleep, mental health and financial well-being are equally important—and highly intertwined. This blog explores the concept of wellness and the impact your finances have on it. 

Your Money on Your Mind

The relationship between mental health and finances is complex and bidirectional. On one hand, poor financial health can lead to stress, anxiety, and even depression. On the other hand, mental health challenges can make managing finances more difficult, leading to a vicious cycle of financial strain and worsening mental health.

Financial Stress and Mental Health

Whether it’s struggling with debt, living paycheck to paycheck, or worrying about future financial security, money-related stress can take a toll on our mental health. According to the American Psychological Association, money is one of the top sources of stress for Americans, with nearly 72% of adults reporting feeling stressed about finances at least some of the time.

Chronic financial stress can lead to a host of mental health issues, including anxiety, depression, and sleep disorders. It can also affect your relationships, contributing to conflicts with partners or family members, in turn making stress and anxiety worse. The constant worry about finances can also lead to unhealthy coping mechanisms, such as overeating, substance abuse, or compulsive spending. As you can see, that bidirectional relationship is no joke. 

Mental Health and Financial Management

Mental health challenges can make it difficult to manage finances effectively. Conditions like depression, anxiety, and attention deficit disorders can impair your ability to focus, make decisions, and stay organized—all of which are crucial for managing money. For example, someone struggling with depression may find it hard to summon the energy to pay bills on time, keep track of expenses, or plan for the future. This can lead to missed payments and accumulating debt, creating a feedback loop that’s hard to break.There are also certain mental health conditions with a high correlation to impulsive or compulsive spending. Spending sprees can lead to debt and feelings of shame. 

Taking Good Care of You

Given the strong connection between mental health and finances, it’s crucial to adopt strategies that address both areas simultaneously. Here are some practical tips to help you manage your mental health while maintaining financial well-being.

1. Create a Financial Plan

This plan should include a budget, savings goals, and a debt repayment strategy. A financial plan can provide a sense of control and direction, reducing anxiety and stress about money. If you’re struggling with creating a plan on your own, there are budgeting apps that can simplify the process or, if you have the means, seek advice from a financial counselor. 

2. Practice Self-care 

This might sound “woo woo,” but mindfulness is something everyone can benefit from. Mindfulness is the intentional act of keeping your thoughts in the present, not on the past or the future, where anxieties often lie. This practice can help you feel calm, in turn making it easier to manage both your mental health and, in turn, your finances. You can also manage stress through yoga, meditation, and deep-breathing exercises. Creating downtime or “me time” each day can help you recharge and maintain a healthy mindset.

3. Seek Professional Help

If you’re struggling with mental health issues that are affecting your finances, talk to someone. Today, therapy is more accessible than ever through apps and remote-session options. Therapy is more than simply an outlet for venting; a trained therapist can help you develop coping strategies for managing stress, anxiety, or depression. There are even therapists who specialize in financial struggles, helping you navigate the emotional aspects of money. 

4. Set Realistic Financial Goals

Setting realistic financial goals can help you stay motivated and focused without becoming overwhelmed. Break down larger goals, like paying off debt or saving for a major purchase, into smaller, manageable steps. Celebrate your progress along the way, and remember, setbacks are normal and part of the learning curve. Just keep going. 

5. Build an Emergency Fund

An emergency fund can provide a financial safety net, reducing stress about unexpected expenses. Aim to save at least three to six months’ worth of living expenses in a separate savings account. Knowing that you have a cushion to fall back on can give you peace of mind and help you avoid turning to credit cards or loans in times of crisis. All that said: Everyone isn’t in a position to save that much money. It’s okay. Work with what you have, and the rest will fall into place. 

6. Avoid Comparing Yourself to Others

In today’s social media-driven world, it’s easy to fall into the trap of comparing your financial situation to others. This can naturally lead to feelings of inadequacy. Keep in mind that what you see online is often a curated version of reality. Focus on your own goals and progress, and avoid the temptation to compare yourself to others.

A Balanced Approach to Wellness

Wellness is an umbrella that covers all of the biggest components of life: the physical, the emotional, and the financial. Because creating a more financially literate population is our mission at Sqwire, we wanted to focus on the connection between overall wellness and financial health, which is both undeniable and manageable. With that knowledge in hand, your next step is to implement strategies to make the most of that relationship. Through small, consistent steps to prioritize your mental and financial well-being, you’ll be on your way to a healthier, happier life. While National Wellness Month highlights the importance of taking good care of you, the truth is, every day is the perfect time to do just that!

Sqwire is on a mission to help people take control of their financial future. We partner with businesses, organizations, and solopreneurs to provide our SqwireLife platform to employees and customers. Let’s talk about how you can provide them with FREE access to 70+ lessons on personal finance topics, from insurance to investing to retirement and more!