A new study has highlighted the sometimes overlooked link between money worries and mental health problems.
Commissioned by the Money and Mental Health Policy Institute, the charity founded by consumer advocate Martin Lewis, the State We’re In report found that people with mental health problems were more than twice as likely to be in arrears with at least one payment in the past 12 months .
Almost half (46%) of people with mental health problems agreed “I cannot afford to save money on a regular basis” while 25% said they do not save for emergency savings, compared with 18% of people without mental health problems.
It’s clear that the struggle to survive can create a tremendous amount of stress and anxiety, but did you know that your finances have other options for affecting your mental wellbeing – and vice versa?
1. Expenses to Relieve Anxiety
“People with anxiety may be more in debt because their focus is not on their future needs but rather on suppressing their fear,” says Philip Karahassan, BACP consultant and founder of Therapy in London (therapyin.london).
However, that does not necessarily mean the “treat yourself” approach. “It could be buying gifts to take the pressure off. As a result, anxiety patients can stretch financially beyond their means. In this way, they can create a spiral of fear because they are in debt or cannot afford supplies, rent or bills.
That creates more fear again and the cycle continues. “
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2. Buy gifts instead of showing emotions
Thoughtful gifts are a nice way to show caring, but there is a risk that “sometimes money can be exchanged for love,” says Dr. Audrey Tang, psychologist and author of The Leader’s Guide to Resilience showered you with gifts instead of spending time with you on a regular basis.
“When a child has grown up in this environment, it is unfortunately possible that they too enter adulthood with money instead of emotions – instead of offering support, they peel off but send flowers; If they fail you, they don’t apologize, but buy you a gift instead of doing something that takes effort. “
If this pattern continues, there is a risk that “the gifts that don’t really replace depth, intimacy and connection may have to become more extreme for the relationship to last … this can lead to financial problems as well as emotional ones.”
3. Shopping as escapism
Are you a firm believer in the power of so-called retail therapy? “It’s worth stopping and wondering what you’re spending on and why,” said Matt Wotton, BACP therapist and co-director of the London Center for Applied Psychology (lcap.co.uk). ”
Spending money can be a way of avoiding the problems in your life. “
For example, it can’t hurt to indulge in an occasional pick-me-up after a stressful day at work, but it may not be advisable to go shopping to “avoid the feeling of emptiness in life or the problems in your relationship” . .
Adds Wotton, “If it’s a habit, it probably obscures a problem. And remember, while spending money can feel like fun, studies show that saving is often a more reliable addition to happiness. Has money in the bank [been shown to have] a stronger connection to life satisfaction than income. “
4. Impulse buying
Are you easily hit by advertisements that urge you not to miss out on exclusive offers?
Click on ‘Add to cart’ as soon as you see that an item is low on stock?
“This may refer to the psychological hangover from evolutionary times, when we were built to survive, not necessarily to thrive in the long term,” Tang says.
Tang advises, “It is important to recognize that times have changed and so our judgments must be made. Now it’s not necessarily a case of neglect, but rather [asking] ‘Is someone trying to cheat on me?’ “
5. Sticking to bad investments
When it comes to investing your money, people can conflict with the sunk cost bias and continue to put money into a project that fails.
Tang explains, “This is the bias that makes us think, ‘I’ve already put so much time / energy / money into this situation / work / relationship that I might as well move on.’
When there are no clear signs that something is about to change, it is often better to reduce your losses before things get so bad that the change is forced on you. “