How Our Finances Can Affect Our Mental Health: What You Need To Know


The state of our bank balance is intrinsically linked to how we’re feeling, and it perhaps doesn’t need us to tell you that the lower your bank balance, the more likely you are to struggle with your mental health.


That’s becoming an increasing problem in the cost-of-living crisis, with interest rates rising worldwide and more people falling into money worries than ever before. Therefore, it may be relatively new to you.

It can be a slippery slope, leading to a number of mental health problems that can often require help from places such as mental health treatment centres to get you back on track. So if you’re feeling not quite your normal self, and finances are slipping more and more into your consciousness, here are five things that could be at the root of the problem…

Financial Stress and Anxiety

Financial difficulties, such as debt, unemployment, or struggling to make ends meet, can cause significant stress and anxiety. Constant worries about bills, loan repayments, and basic necessities can take a toll on mental well-being, leading to sleep disturbances, irritability, and feelings of hopelessness. Financial stress can also strain relationships, adding to the burden on one’s mental health.

Depression and Low Self-Esteem

Experiencing financial hardships over an extended period can contribute to the development of depression. The constant pressure and feelings of inadequacy can erode self-esteem, leading to a sense of worthlessness and despair. Persistent financial struggles can create a negative cycle where depression further hinders the ability to overcome financial challenges, exacerbating the impact on mental health.

Addiction and Substance Abuse

Financial difficulties can increase the risk of turning to unhealthy coping mechanisms, such as addiction and substance abuse. Some individuals may resort to alcohol, drugs, or gambling as a temporary escape from financial stress or as a means to deal with negative emotions. However, these behaviors can quickly spiral into full-blown addictions, leading to further financial strain and the need for costly rehabilitation.

Relationship Strain and Social Isolation

Financial struggles can strain relationships, causing conflicts and misunderstandings. The pressure of managing finances, disagreements over spending habits, or the inability to participate in social activities due to limited funds can lead to social isolation and feelings of loneliness. A lack of social support can contribute to deteriorating mental health and further exacerbate the negative effects of financial difficulties.

Barriers to Accessing Healthcare and Support

Financial limitations can hinder individuals from seeking essential healthcare services and mental health support. The cost of therapy, medication, or rehabilitation programs may be unaffordable for those facing financial difficulties. The inability to access necessary treatment can prolong mental health challenges and hinder recovery, perpetuating a cycle of poor mental well-being.

However, there are options available, and many treatment programmes can be made accessible to get you the help you need.

Impact on Overall Well-being


Financial stress and mental health struggles are closely intertwined and can have a cumulative impact on one’s overall well-being. The constant worry and preoccupation with financial concerns can lead to sleep disturbances, poor physical health, and reduced quality of life. The resulting emotional and physical toll can further hinder one’s ability to overcome financial difficulties and maintain positive mental health.



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