People from all over the world have to deal with financial uncertainty, especially now during a pandemic. Between a loss of work, increasing debt and unexpected expenses, financial worry is something that affects many Americans.
In fact, a study from the American Psychological Association (APA) found that 72 percent of people feel stressed about money at least some of the time. If you are one of them, you certainly aren’t alone. But what can you do to improve your situation - and your mental health?
How Finances Affect Your Mental Health
While it’s true that you don’t need money to be happy, you do need it to survive. This is why people who struggle with their finances also tend to struggle with their mental health. The cycle makes sense, too. When your finances leave you stressed, anxious or depressed, it becomes harder to manage money, leading to further financial problems.
Financial stress can lead to the following symptoms:
- Trouble sleeping
- Social withdrawal
- Weight gain or loss
- Relationship difficulties
- Unhealthy coping mechanisms
Tips for Dealing with Financial Problems
Most people are understanding of financial problems because they suffer from them, too. Avoid hiding from your issues or pretending like they don’t exist. This only makes things worse.
- Talk to a professional. There are many professionals who can help you manage your money, communicate with creditors, claim benefits, find work and more. A financial advisor in NJ is a great place to start.
- Take inventory of your finances. List ALL debts and spending. See where you can cut things out, such as subscriptions or dinners out. Also eliminate all impulse spending.
- Make a plan and stick to it. When you determine your financial problems, such as overspending or too much debt, you can create a solution and stick to it.
- Create a monthly budget. Setting and following a monthly budget can help you regain control of your finances and live within your means.
- Manage stress. It’s important to manage your stress levels, and you can do this by practicing good self-care.
There is a direct link between mental health and money. If you feel that you’re struggling with spending and saving, contact Leonard Financial Solutions today. Our financial advisors can help you get back on track with your finances, while also helping you save for retirement!