
Photo credit: Craig Field Photos
Financial stress is a reality for many, and its impact on mental health can be profound. When finances are tight, feelings of anxiety, depression, and helplessness can intensify, especially for those already living with mental health conditions. From managing bills to planning for future expenses, financial pressures can exacerbate symptoms of anxiety and depression, making it even more challenging to cope day-to-day.
In this post, we’ll explore the relationship between financial stress and mental health, examine how it affects conditions like anxiety and depression, and offer practical advice on managing financial stress while prioritising mental well-being.
How Financial Stress Impacts Mental Health
Financial stress doesn’t just impact our wallets; it affects our entire mental and physical well-being. Some of the key ways it can affect mental health include:
Increased Anxiety: Worrying about debt, bills, or an uncertain financial future can lead to chronic anxiety, making it difficult to relax or focus on other areas of life.
Exacerbated Depression: Financial difficulties can deepen feelings of sadness, low energy, and hopelessness. In some cases, they may lead to self-isolation or a sense of shame.
Difficulty Sleeping: Financial stress can cause sleep disturbances or insomnia, which further impacts mental health, energy, and the ability to cope with daily life.
Impact on Self-Esteem and Motivation: Struggling financially can sometimes lead to self-doubt and lower self-esteem, affecting motivation to seek new opportunities or make changes.
These effects can be especially challenging for those already living with mental health conditions like anxiety, depression, or complex PTSD, as I’ve discussed in previous posts on living with these conditions. When financial stress enters the picture, it often adds another layer of challenge to an already difficult journey.
Practical Strategies for Managing Financial Stress
While financial stress can feel overwhelming, there are practical steps you can take to regain a sense of control. Here are some strategies that can help:
Create a Financial Plan
Building a clear financial plan can help reduce uncertainty and create a sense of control. Begin by tracking your income, expenses, and debts to get a clear picture of your financial situation. Once you understand where your money is going, consider creating a budget that prioritises essential expenses like housing, utilities, and food.
Set Small Goals: Financial goals don’t have to be grand. Breaking down larger financial goals (like saving or paying off debt) into smaller, manageable steps can make the process less intimidating.
Build an Emergency Fund: Setting aside even a small amount each month can provide a cushion during unexpected financial challenges. Having an emergency fund, however modest, can alleviate some of the stress associated with financial uncertainties.
Prioritise Self-Care and Mental Health
When finances are tight, investing in self-care might feel like a luxury, but it’s essential for managing stress and maintaining mental health. As I’ve mentioned in previous posts, mindfulness and meditation practices can help manage symptoms of anxiety and depression. Even a few minutes of daily mindfulness can reduce stress, help ground you, and improve overall resilience.
Exercise and Nutrition: Physical health has a direct impact on mental health. Finding free or affordable ways to stay active and eat well can help relieve stress. As I discussed in The Role of Nutrition in Mental Health, balanced meals can support mental well-being.
Sleep and Rest: Make sleep a priority, as it plays a crucial role in stress management. Establishing a calming evening routine can improve sleep quality, helping you approach financial challenges with a clearer mind.
Seek Support from Trusted Friends and Family
Financial stress can feel isolating, but talking to someone you trust can provide relief and perspective. Sharing your concerns with a friend or family member not only lightens the mental load but may also offer insights, resources, or encouragement. Building a mental health support system, as I’ve discussed previously, is invaluable in times of stress.
Set Boundaries: When talking about finances, set clear boundaries to ensure the conversation remains supportive rather than overwhelming or judgmental.
Explore Financial Assistance Programs: Many communities offer financial support services, including assistance with food, rent, or utilities. Knowing about these resources can alleviate stress and give you some breathing room.
Educate Yourself on Financial Literacy
A lack of financial knowledge can sometimes add to stress. Learning about budgeting, managing debt, and financial planning can empower you to make informed decisions. Many organisations and libraries offer free financial literacy workshops, and there are numerous reputable online resources as well.
Start Small: Financial education can feel daunting, but you don’t have to master everything at once. Begin with basic concepts like budgeting and gradually expand to topics like saving and investing.
Avoid Information Overload: Seek out information that’s relevant to your specific financial situation, and don’t feel pressured to learn everything at once. Financial growth, like mental health recovery, is a gradual process.
Explore Professional Support
Just as mental health professionals provide support for emotional challenges, financial advisors or planners can help address financial stress. If possible, seek the guidance of a trusted advisor who can offer practical advice tailored to your situation. Many advisors offer free initial consultations, and some non-profit organisations provide low-cost or free financial counselling services.
Consider Financial Therapy: For some, financial stress is deeply tied to emotions or past experiences. Financial therapy, a blend of financial guidance and emotional support, can help you explore your relationship with money and develop a healthier mindset around finances.
Practice Self-Compassion and Challenge Negative Thought Patterns
Financial difficulties can trigger negative thoughts, especially if you’re dealing with anxiety or depression. Practice self-compassion by reminding yourself that financial stress is common and doesn’t define your worth. As I discussed in Breaking the Cycle: Dealing with Negative Thought Patterns, challenging self-critical thoughts can help break patterns of shame or despair.
Identify Thought Patterns: Notice when you’re being overly critical of yourself or fixating on worst-case scenarios. Challenging these patterns can help reduce the mental toll of financial stress.
Celebrate Small Wins: Even minor progress, like sticking to a budget for a week, is an achievement. Recognising these small wins can boost morale and provide motivation.
Set Boundaries with Social Media
Financial stress can be amplified by social media, where images of others’ lifestyles may create feelings of inadequacy or FOMO. Setting boundaries with social media, as I highlighted in The Impact of Social Media on Mental Health, can help protect against unnecessary comparison and focus your energy on personal goals.
Limit Exposure to Consumerism: Unfollow accounts that promote excessive consumerism or that make you feel pressured to “keep up.”
Focus on Positive Content: Follow accounts that promote financial education, mental health, or support without judgment.
Finding Balance and Hope
Balancing mental health and financial stress can feel like a constant challenge, but it’s possible to cultivate a healthier relationship with money and with yourself. Remember that financial challenges don’t define you, and even small steps can lead to meaningful change. Surrounding yourself with supportive people, setting achievable goals, and practicing self-compassion can help you build resilience during difficult times.
Above all, acknowledge that seeking help—whether financial, emotional, or both—is a sign of strength. Financial stress may be a part of life, but with tools, support, and self-care, you can navigate this journey while protecting your mental health.
A note about the author: Craig Field (me) is not a trained counsellor or therapist. I do try to offer advice based on my own personal experience; however, you should always talk to a medical practitioner or qualified therapist to come up with a tailored plan to help with your illness.
My knowledge comes from my own personal, lived experience and that of witnessing people close to me navigating the mental health system.
These blog posts are not intended to replace your doctor or psychologist.
Together we CAN make a difference!
If this post has brought up some difficult thoughts for you, please seek help from your doctor or one of the services listed below. In an emergency dial 000.
13YARN 13 92 76
Blue Knot Helpline 1300 657 380
First Nations Support Line 1800 959 500
Headspace 1800 650 890
Mens Helpline 1300 789 978
Standby support after suicide 1300 727 247
Would you like to learn real skills that will help in the real world?
Dm me or contact via my website because together we can make a difference.
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