The Impact of Financial Stress on Our Mental

Financial strain has intensified significantly in recent years but the mental health impact remains largely hidden. Due to the cost-ofliving crisis, an increasing number of individuals will experience financial stress and according to the Mental Health Foundation the impact on mental health could be on a similar scale to the COVID-19 pandemic.

The link between financial health and mental health is complex and multidimensional. Research has shown that individuals who are financially insecure or struggling with debt are more likely to experience mental health issues such as stress, anxiety, depression, and other psychological problems.

There are many reasons why financial stress can negatively impact our mental health and the consequences can be significant and long lasting. In this article we will explore some tips to address financial stress to help improve your mental health.

Tips for addressing financial stress

There are many strategies that individuals can use to address financial stress and improve their mental health. Here are a few to get you started:

Take stock of your financial situation

– it can be helpful to draw out a clear overview of the situation so that you can start tackling it slowly. Create a budget and list out any debts you may have so you can make a plan to repay them.

Tracking your spending can also help you to gain a better perspective of your spending habits and will give you an idea of where you can make cut backs.

If you cannot pay some bills, consider talking to the organisation and explain your situation. Often a mutually agreed payment plan can be arranged to make payments more manageable

If you are struggling, it is important not to feel alone. If you can, reach out to family, friends, support groups or a trained therapist to talk openly about what is worrying you. This can help to ease the burden and help you feel less isolated. Talking about financial stress can reduce feelings of shame and isolation and can help individuals feel more empowered to address their financial situation.

Do your research and ensure that you are claiming for any available tax credits or support packages which you may be eligible for.

Seek professional financial advice especially if you are already in financial difficulty. A financial planner or advisor can help individuals create a budget, set financial goals, and develop a plan for paying off debt. This can reduce financial stress and provide a sense of control over one’s finances.

Another effective strategy is to focus on meeting your immediate wellbeing needs. This includes engaging in regular exercise, eating a healthy diet, getting adequate sleep, and taking time to relax and engage in enjoyable activities. Good self-care can help reduce stress and improve mental health. w Seeking professional financial advice w Practising good self-care w Developing good financial habits w Seeking social support

The link between financial health and mental health is clear and significant. Financial stress can negatively impact mental health in a variety of ways, including increasing anxiety, depression, and other psychological symptoms. However, there are many strategies that individuals can employ to address financial stress and improve their mental health.

By taking steps to address financial stress, individuals can reduce the negative impact on their mental health, improve their overall well-being, and increase their sense of control and agency over their lives. It’s important to remember that financial stress is a common issue, and there is no shame in seeking help and support to address it. With the right strategies and support, individuals can overcome financial stress and improve their mental health and overall quality of life.

If you’re looking for effective ways to support employees’ health and wellbeing or would like to discuss your employee benefits in more detail please get in touch: employeebenefits@howdengroup.com.