Surprising Facts About Financial Well-Being & Mental Health

|What emotions do you associate with the word 'money'? How do you feel when you think of your own financial portfolio? If the emotions you associate with the concept of money relate to feels of stress, sadness, anger or even fear, you're not alone. 

​According to debt.org, difficulty with finances is very common and an unhealthy relationship with money can cause emotional turmoil for some individuals, and can even lead to mental health concerns such as depression. ​

The importance of building a healthy relationship with your finances is clearly evident due to the inevitability of requiring money in our society, but also the fact that money matters can have a profound impact on our overall sense of well-being.

​Yet many individuals may actively ignore their money woes or feel a sense of powerlessness to face their finances from fear of finding out how much debt they really have, or to see their dreaded net worth amount. However, being aware of your overall financial situation can also provide clarity and a sense of control in order to begin building a healthier relationship with this part of your life.

Consider your own financial well-being for a moment... (And yes, this might be scary for you! But you clicked on this article for a reason, and have taken a step towards finding out more about how your financial well-being may be impacting on your mental health.. so keep going!) - ask yourself the following questions:
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• ​What is your net worth (assets minus debts)? 
• How do you keep track of your expenses (do you have a budget? is it updated?)
• Do you talk about your finances with anyone like your partner or a financial adviser?
• How much do you pay each month in fees or late charges?
• What are your savings or debt repayment goals?

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What was it like to hear the answers to these questions and how they relate to your own relationship with money? You might be feeling overwhelmed or hovering over the X button on the browser tab, but know that these feelings are completely normal. Keep reading for some interesting facts about finances and mental health plus resources to help you get started improving your own relationship with money. 

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Facts

• A 2014 study on couples and money habits found that 70% of couples argue more about money over all other household or relationship issues. 
• One of the biggest predictors of divorce and a main source of conflict within intimate relationships relates to the way couples manage their finances.
• People with mental health issues are three times more likely to have debt or money problems.
• Money is associated with varying levels of stress from mild to extreme and is one of the main reasons for stress in America.
• Families that consider money a taboo topic experience feelings of discomfort when discussing finances, may lack emotional support, and report symptoms of depression more often.
• Student loan debt is associated with mental health concerns including anxiety.
• Money worries can cause sleep deprivation that impact on an individuals overall health and well-being.

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Tips

Although I won't pretend to be a financial expert, I have personally started to pay much closer attention to my own financial well-being and how it relates to my own mental health, and in the past two years have discovered ways that have vastly improved this area of my life. It can be important to remember that your financial well-being will be specific to you, your situation, and your current life circumstances (as well as your hopes, dreams, goals, motivation level, etc), so finding tips that work for you is important.

Here are some financial well-being tips that I have found helpful from blogs, financial experts, and personal experience:

• Create a budget
• Calculate your net worth
• Make sure your taxes are up-to-date
• Invest or set up your retirement savings plan
• Set aside money each month of fun or self-care
• Set financial goals for debt repayment & savings
• Eliminate late charges, fees and interest payments
• Sell items gathering dust on buy-sell websites for extra income
• Talk to your partner about money & agree on a financial plan together
• Side hustles to increase income and pay down debt or build savings quicker

Have any finance tips to share with other readers? Add them in the comments below!

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Resources

It can also be tough to organize and build a healthy relationship with money on your own. Consider asking for help from friends (especially if you have a math whiz for a sister like me), explore free online resources, or make an appointment with your bank or accountant. If you are finding you are feeling overwhelmed and want to talk about things further, seek out support from a mental health professional.
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CLICK HERE TO SEE MY FAVOURITE FINANCE PODCASTS!

NB: Most of the following suggested resources are for Canadians, but a quick Google search will help you find resources in your own country!

Here are some financial experts to check out:

• Bridget Eastgaard | Money After Graduation: Bridget caters to millennials (my age bracket) and she gives a no-nonsense type of approach when it comes to money matters (she tells it like it is!). She also offers a free debt-crusher eCourse on her website.
• Gail Vaz-Oxlade | Debt Free Forever: Gail appears on the show Til Debt Do Us Part and gives straight-to-the-point financial advice to couples. Her website is filled with articles, resources, tips, and Q&A's. She has also written several books!
• Jessica Moorhouse | Mo' Money Podcast: Jessica shares her financial wisdom through her blog and podcast where she features guests who talk about personal stories about money management or expert advice to help build your financial well-being.
• Credit Counselling Society | Nomoredebts.org: Free online tools and confidential counselling that can help you gain insight into your current financial situation, consider debt consolidation or bankruptcy options.

Here are some of my own recommendations that I use to organize my own finances:

• Mint: Free and secure personal finance organizer - sync all of your accounts (banking, credit cards, mortgage, student loan, etc), set up budgets and finance goals, and see trends over time. This is a great way to see an overview of your financial portfolio in order to start taking charge of your money.
• Tangerine Bank: An online bank that offers no fees for banking, a higher interest rate than most for cash-back on savings, investments and a credit card and a very user friendly online banking interface.
  • Use my Orange Key 46581005S1 to receive a bonus when you sign up.
• Questrade: Open a self-directed investing account and pay lower fees than a mutual fund account. Investing can help you save more for your retirement and to build residual income. 
  • ​​Use my QPass Key 775906489409124 to receive a bonus when you sign up.
• Mylo: Mylo rounds up your purchases & invests the spare change

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More Resources

You made it to the end of the article, great job! Need some strategies to relax now? 

• ​7 Ways Your Physical Health Is Connected to Your Mental Health
• Self-Care Strategies: 10 Ways to Promote Well-Being
• 3 Mental Health Apps I Use Every Day​​

References: moneyandmentalhealth.org,apa.org, time.com,nytimes.com, cutimes.com, moneyhabitudes.com, theglobeandmail.com

*Some links on this page are embedded with affiliate links which I may be compensated for at no additional cost to you.