When discussing self-care, our brains almost automatically think of helpful tactics and techniques that can improve our emotional, physical, mental, and spiritual well-being. However, one integral, albeit overlooked, aspect of self-care is financial balance. Implementing financial self-care strategies can affect our thoughts, emotions, and overall quality of life.
To live a more balanced and stress-free life, we must prioritize having a healthy relationship with making, spending, and saving money. This article tackles the connection between money and mental health and provides helpful and practical recommendations for becoming more financially stable.
How money affects mental health
Money, specifically the shortage or surplus of it, is directly related to how people function and spend their time. For example, a staggering 27 million US households that don’t have enough saved or are dealing with increased cost of living can’t afford necessities, such as housing, food, and water.
Not having enough funds can also negatively impact people’s mental health, causing stress, anxiety, panic, and depression. A 2022 and 2023 survey from the financial group Bankrate and psychology news site Psych Central states that the percentage of people worrying about their finances is harming their mental health is 42% and 52%, respectively. According to the 2022 survey, 70% of respondents shared that “stress” is the feeling they associate most with money matters. Meanwhile, the 2023 survey revealed that money was the topmost thing that affected their mental health, beating out health matters (42%) and current events (41%).
People’s finances can also heavily affect their physical and emotional health. Financial stress is linked to insomnia, fatigue, muscle tension, high blood pressure, and digestive problems. Not only that, but financial strain can also cause trouble with friends and loved ones, increasing conflict and reducing satisfaction in relationships. Based on a 2022 report, 20 to 40% of marital problems are caused by money challenges.
Tips on becoming more financially stable in 2025
Create a realistic budget
To gain a better understanding of where your money goes and ensure you’re on track to reach your financial goals, you need to create a budget. It doesn’t have to be a daunting task — you just need to identify your net income, monthly expenses, and financial objectives. Once this is done, you can just easily tweak the amount allotted for each item in your budget as you see fit. You can use a spreadsheet, a budget tracking app or software, or a notebook; choose whichever method works best for you.
Create a (fun) day out of discussing money matters
Let’s face it: Talking about money is far from being fun and exhilarating. However, if you have a life partner, it’s a necessary task that can help you avoid miscommunications and conflicts. Set a date once a week or month, depending on your preference, and discuss how your finances are holding up and if you’re meeting your goals. Try to keep the discussion short yet fun by incorporating enjoyable activities, such as drinking your favorite drink or a charcuterie board, or even playing a board game afterward.
Reassess your debts
Having debt can greatly affect your mental health, with people who have debt reporting to be more prone to increased levels of denial, anger, depression, and anxiety. Additionally, 46% of people with debt stress also report having a mental health problem. To keep debt stress at bay, reassess your debts and check which ones have the highest interest rates. It’s also a good idea to have a debt repayment strategy, allowing you to choose a debt payment method that fits your budget.
Becoming more financially secure is a form of self-care. It empowers you to build a more stable future and helps keep your mental, physical, and emotional health at optimal levels. We hope that these tips can help you take the necessary steps to be more financially stable in 2025 and beyond.
