Have you heard the saying that “your greatest wealth building asset is your brain?” This is because it is the strongest visualization of your mind and money. Your mental wellness has more control over your money than you may realize.
Consider your thoughts when you are sad, anxious or lonely: you’re naturally in a state associated with negative thinking. Whereas, happiness and excitement are emotions from positive thinking. Because having debt or being low on cash can cause frustration and self-doubt, especially if you are working hard to pay it off but have to balance other obligations as well, can put you down the spiral of negative thinking, impacting all aspects of life. The main reason for this emotional relationship is because money is often tied to our perceptions of happiness.
The correlation between thoughts, emotions and actions are on full display in your financial decisions. Many people often think that if they could get a job with a higher salary or if they had more money they would be free of stress, anxiety, or depression. While it does happen in some instances, if you don’t get to the root of your money habits, your cycles will continue to be the same, leading you into the same troubled patterns with money. Here are three ways mental wellness impacts your money.
Depression and mania are two mental health conditions that are detrimental to finances. Sadness and negative thinking are precursors to depression, whereby excitement can lead to a state of mania. During these mental states, money can be spent without thinking or mismanaged from a lack of desire. Feeling hopeless and depressed, you can easily spend your way into debt or fall deeper in debt from buying things to feel better. These purchases often result in unfulfillment and lead you to repeat the cycle looking for a different outcome. Overspending is an action of mania. Constantly spending money to maintain the feel good state. According to Money and Mental Health, 93% of people with mental problems spend excessively and 71% avoid creditors. When you don’t have a sound mind you will not make good financial decisions leading to a detrimental mental and financial state. It creates a cycle of money and mental health problems that is difficult to break. Self awareness is the best defense to protect your money in these situations.
Money stressors come in various forms. Social and emotional stressors such as fear of not having enough money or loss of income can cause anxiety. According to a survey by the American Psychological Association, as many as 1 in 5 Americans have considered skipping or skipped going to the doctor when they needed health care because of financial concerns and about a third of adults say that money is a major source of conflict in their relationships. Overthinking about financial situations also creates anxiety. Assuming financial responsibility for too many people creates financial strain that is avoidable. Even the most well to do individuals should exercise caution when making decisions to provide for others. Abrupt changes in financial situations along with the thought of letting someone down all add to financial stress. This stress
A lack of mental clarity creates confusion, decision fatigue, and a lack of confidence. Even the most fiscally responsible person in your family or friend group can make poor financial decisions with a cluttered mind. Constantly thinking about what to do leads to decision fatigue. A clear mind promotes decisiveness and healthy financial habits. Setting aside time to meditate is the best way to eliminate mental fog and create clarity.