What does financial health have to do with your well-being?

We’re facing a lot in our current times. The rising cost of living, mounting student debt, job insecurity. It’s no surprise that financial anxiety is growing. But what many may not realise is that these worries can have a profound impact on our mental health, too. 

Financial stress is rising 

According to a recent study by the Office for National Statistics, almost half of UK adults (49%) said they experienced financial stress caused by not being able to keep up with payments or falling into debt, compared with 33% not being behind, but still suffering from the same financial anxiety. 

This stress can show up in many forms. When money worries are constant, it’s hard to focus on anything else, let alone enjoy the things that make you happy. It doesn’t just hurt your bank account; it can strain relationships and drag down your overall quality of life. Sometimes, the weight of financial worries can be so heavy that it triggers mental health issues like anxiety and depression. 

Why financial literacy is so important 

To tackle this rising tide, it’s crucial to make financial literacy a priority. Knowing how money works helps you develop the skills needed to budget smartly and handling debt wisely and serves as the foundation to achieving financial stability and peace of mind. You can find easily understandable courses or videos online – or have a look at your local library for books. 

Creating a budget is one of the best steps you can take to improve your financial health. This involves tracking your income and expenses to find areas where you can cut back and save money. There are many budgeting apps and tools available to help you get started. Stick to your budget, and you’ll not only avoid overspending but also build an emergency fund for those rainy days. Remember that small steps are still steps forward. You don’t need to aim for hundreds of pounds a month; even putting away a little will accumulate over time. 

For those with limited credit history, a credit builder card can be a helpful tool. By using a credit builder card responsibly and making on-time payments, you can gradually improve your credit score and access better financial opportunities in the future. 

If you’re carrying a lot of debt, it’s important to develop a plan to pay it off as quickly as possible. This might involve creating a debt repayment plan, negotiating with creditors, or consolidating your debt. Don’t let it untouched or unmanaged for too long. 

Know when to seek professional help 

Knowing your finances is essential, but never forget that your mental health matters just as much. If you’re struggling with financial stress or mental health issues, don’t hesitate to seek professional help. A financial advisor can help you develop a personalised financial plan, while a therapist can provide support and guidance for managing your mental health. 

Remember, you’re not alone. With the ongoing cost-of-living crisis, many of us are in a position we don’t want to find ourselves in. Plenty of resources can help you overcome financial challenges and create a brighter future – just take the first step.