For the last few decades, cases of mental health have been increasing at an alarming rate. What’s even more worrying is that the condition is also affecting very young people. But what is causing such a high increase in cases of mental health? Well, various studies have shown that social pressure is one of the leading causes of poor mental instability.
Research has shown an undeniable link between mental health and financial health. People with enough money are happier and mentally healthier compared to people struggling with financial problems. So how important is money in your well-being? Well, in this guide, we have put together some of the ways your finances are affecting your mental health.
One of the biggest ways that your finances will affect your mental health is stress. According to studies that have been conducted on various cases, it has been proven that people struggling finances are more prone to stress than their counterparts. Once you realise that you don’t have a ‘safety net’ to handle possible emergencies, then you cannot think straight. You are likely to get stressed and more anxious even by very simple. You will always live in fear for the worst, and that’s how to get the stress condition worse. If things don’t improve sooner, the condition might worsen.
Anxiety is another mental condition that can be triggered by your financial stability. When you are in good financial health, and you can meet all financial obligations, the level of anxiety due to financial pressure is almost zero. But once you get debts piling up or lose your job unexpectedly, then anxiety will start kicking in. Studies have shown that more than 29% of the people struggling with debt usually suffer severe anxiety.
Depression is one of the biggest mental problems that most people in Australia are struggling with. However, studies and shown an undeniable link between depression and poor financial health. When you have enough money to meet all your financial obligations and living a good life, the possibilities of developing are very low. However, the moment your income taps get dry, then you start getting anxious, and the nest thing is stress. Studies have shown that around 23% of the people in debt usually suffer severe depression. That is how financial health can impact your mental.
4. Desperation for Temporary Relief
Just like when you are feeling pain, taking a painkiller that does not cure the problem feels but release the symptoms. That is the same when in financial problems. If you have lost a job and you are struggling with paying the mortgage or rent, then you end looking for temporary solutions. You can borrow the money to repay the debts that have matured, yet what you have done is postponing the problem to a later date. This is usually the period when most people find themselves in toxic debts such as payday loans which continues to create more financial mess.
5. Plummeting Self-Esteem
One of the biggest mental battles that individuals struggling with financial problems face are low self-esteem issues. Once you lose a job or your business has fallen, and you are sinking into debts, self-confidence start eroding. Such people then tend to withdraw from their previous company the moment they cannot live the kind of life they were used to. That’s a sign they are slowly getting into mental problems. Low self-stem has very negative effects on victims’ mental health. If not checked or the situation does not improve, they slowly slide into stress and then depression.
6. Unhealed Would May Come Back
When you are financially unstable, your mind is usually preoccupied with fear. You can’t figure out how to deal with the financial burdens with bills piling up. At this time, nothing positive can come from your mind. The brain will start remembering the times that you were going through the same experience. So, you will find yourself feeling bitter most of the time. Therefore, the possibilities of unhealed wounds coming back to haunt you are very high. Therefore, the pain will get bigger as the time goes by unless you get psychological help or the situation improves.
7. Poor Decision Making
To make a sound decision about your life or anything, you need a sound mind. That is not possible when you are struggling with financial problems. With the mind preoccupied with negative thoughts, it is difficult to make rational decisions. In most cases, people are looking for shortcuts to solve their financial mess, even if it is a temporary solution. Most of the decisions are likely to be very expensive and could even make the situation worse.
8. Feeling Out of Control
When you lose a job, or your business goes down, then your financial obligation will catch up with you instantly. Maybe you have a car loan or mortgage to pay off, and if you’ve got a family, things get even worse. When everything gets exhausted and stretched to the limit, then you will start feeling helpless. You will find everything spinning out of control. At this moment, your state of mind will start getting worse. You will start sinking into debt, and it is pretty easy to slip into depression if things don’t improve.
Last but not least is denial. A good number of people facing financial instability tend to live denial. This is a mental condition that makes them believe in non-existent things and not reality. Such people do not want to adjust according to the current situation. Denial is a mental condition that is difficult to deal with and ends up making things worse. In most cases, such people end up depressed.
The Bottom Line
If you want to be mentally healthy, then you must ensure that you are financially healthy as well. But because any business can fall, you can lose a job and get into debt; you need to consider covering yourself from financial problems. One crucial thing you need to equip yourself with is a financial plan. Hire a certified local financial planner to help you manage your financial life. That’s the best way to avoid mental health caused by financial problems.