If you have ever experienced mental health issues, you will know just how much they can disrupt your everyday life and make small tasks a significant challenge.
Mind estimates that 1 in 4 people experience a mental health problem of some kind each year in England, and 1 in 6 people experience a common mental health problem in any given week.
Mental health issues can make it hard to manage money matters, and they can also be the cause of financial difficulties such as losing your job or being forced to reduce your hours.
The Mental Health Foundation reports that 29% of adults in the UK experience stress, 34% anxiety, and 10% feel hopeless due to financial worries.
So, with May being Mental Health Awareness Month, read on to discover how closely linked financial and mental health are, and three ways your financial plan can support your mental health.
Consistent research concludes that financial and mental health are closely linked
A survey by the Money and Mental Health Policy Institute found that 86% of respondents with a history of mental health issues said their financial situation had made their mental health problems worse. And 72% said that their mental health issues had made their financial situation worse.
So, the two can create something of a vicious cycle.
The survey also found that financial difficulty reduces recovery rates for common mental health conditions. People with depression and debt repayments they cannot afford are 4.2 times more likely to still have depression 18 months later than people without financial difficulty.
While there are undoubtedly numerous elements that can contribute to poor mental health, finances can often be a factor.
Moreover, many people with mental health problems often report that their spending patterns and ability to make financial decisions change significantly during poor mental health periods.
The survey cited above also found that, while experiencing mental health issues, 63% of people found it harder to make financial decisions, 42% put off paying bills, and 38% took out a loan that they would not otherwise have taken out.
Financial planning can support your mental health
A financial plan could provide you with the stability and clarity you need to feel you have a handle on your financial wellbeing, which could have positive benefits for your mental health.
A survey conducted by Royal London found that 34% of people felt that having contact with financial expertise made them more confident in their financial plans, and the same number also responded by saying that professional financial advice helped them to feel more in control of their finances.
Additionally, 32% said that contact with a financial planner gave them peace of mind.
So, how can financial planning support your mental health?
1. Promoting goal achievement
Setting goals is key to both financial planning and combatting poor mental health.
Goal-setting encourages you to think about who you want to be and how you want your life to look. Once you have created that vision, you can then work out practical steps to get there.
Long-term goals are comprised of multiple short-term achievements. So, as you move closer to your overall life objectives you will make smaller achievements along the way. This can create a positive feedback loop, which could push you to continue working hard toward those longer-term objectives.
A financial planner can help you clarify your long-term goals and then work with you to develop a plan of shorter-term targets that will help you achieve them.
A financial planner can also ensure you stay on track as you make progress and experience life changes along the way.
2. Building resilience, confidence, and stability
A financial planner can help you regain a position of financial stability and build resilience to weather any future trouble you may run into.
Through the enhancement and fortification of your financial plan, a financial planner can help to ensure your finances are protected, instilling a sense of confidence and security that you may have previously been lacking.
This newfound assurance could bolster your overall wellbeing, and alleviate the negative impact that uncertainty and a lack of confidence may have had on your mental health.
3. Encouraging mindful spending and lifestyle choices
As you saw earlier, mental health issues can often lead people to make poor financial decisions. A financial planner can help you to recognise your own biases and impulsions, and show you how to make better-informed choices.
Moreover, a financial planner can assist you in creating a spending plan that aligns with your values and priorities with a focus on mindful expenditure that supports a positive lifestyle.
By fostering this awareness and intentionality in your financial habits, you not only enhance your financial wellbeing but also nurture your mental health.
Get in touch
Financial planners take a holistic approach that considers multiple aspects of your life, including your values, relationships, aspirations, and overall health.
They can help you address the interconnectedness of your financial and mental wellbeing.
If you think you would benefit from financial planning, get in touch.
Email us at hello@vwmwealth.com or call us on 0141 229 4004.
Please note
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
