Approximately 20 percent of adults are impacted by mental illness.1 If you, or someone you know, is struggling with their mental health, you may find financial health suffers as well. Why? Because there's a direct correlation between mental wellness and financial wellness. One study found that almost half of all people with debt problems also have mental health problems.2 Here's an explanation of how health and wealth can often go hand-in-hand.
Avoidance of Problems
Money is the most common source of stress amongst adults.3 Therefore, it makes sense that dealing with bills, debt and budgeting are stressful. If you're already feeling unwell, avoiding additional stress is understandable.
The problem is that avoiding your financial obligations won't make them go away. And in many cases, it can make them worse. The temptation to push aside bill paying or phone calls to the credit card company is strong, but tackling these tasks on time or right away can create long-term relief.
Feelings of Hopelessness
When your mental health is struggling, it can be hard to think long-term. If you feel as though you're losing control of the things around you today, what's the point in trying to work toward future goals? Feelings of hopelessness can occur, making long-term financial decision-making tough.
Going hand-in-hand with loss of control is the urge to spend. When everything else seems to be spiralling, making a purchase can feel like something you have control over. The problem is, of course, this can lead to impulse buying - which can wreak havoc on your budget and increase debt. And with a lack of focus on facing your financial situation head-on could create a harmful cycle of spending more than you have while neglecting to address the accruing debt.
If your mental health is suffering, you'll notice your energy levels decreasing. Fatigue, trouble sleeping and lack of focus can all be common symptoms of declining mental health or stress. With what energy you do have, likely, you don't want to spend it on your financial obligations. But your financial well-being requires action and focus, especially if you are faced with a large amount of debt or a substantial long-term savings goal.
Hard to Think Clearly
Making sound, rational decisions can be challenging when you're not feeling your best. Your judgment may be clouded by how you're feeling right now, meaning it's tough to think about your future - especially your financial future.
It's likely the events of this past year have challenged your mental health somehow, and it's okay not always to be okay. If you've found that your financial wellness may be suffering due to your mental health, reach out to your trusted financial partner. They can help keep your spending and saving on track today while encouraging healthy financial habits that keep your long-term goals a priority.
Please consult financial, legal, or tax professionals for information specific to your situation. The information and material presented are general, may have changed since the published date shown, and should not be considered financial advice. LetsPlan.ca is published in Canada exclusively for residents of Canadian jurisdictions where our products and services may be legally offered. The services offered within this site are available exclusively through our Canadian advisors. While we often provide original content, Twenty Over Ten initially provided the subject matter for this post. It has since been edited, reviewed and approved by our Privacy and Compliance Officer. Advisors may only conduct business with residents of the province(s) in which they are licensed and registered.