In the hustle and bustle of daily life, it’s easy to overlook the profound impact that our financial health can have on our mental well-being. Whether we realise it or not, our finances play a crucial role in shaping our overall happiness and mental health. From the stress of debt to the freedom of financial stability, our monetary situation influences our emotions, behaviours, and even our relationships. Let’s delve deeper into this intricate relationship between finances and mental health.


Stress and Anxiety


One of the most significant ways finances impact mental health is through stress and anxiety. The constant worry about making ends meet, paying bills, or dealing with debt can take a toll on our mental well-being. Financial stress can manifest as anxiety, depression, and even physical health issues like insomnia and high blood pressure. The uncertainty of financial instability can create a constant state of apprehension, making it challenging to focus on anything else.

Man lying awake at night signifying how finances and mental health are linked

Worrying about our finances can impact physical and mental health

Self-Worth and Identity


Our financial situation often influences how we perceive ourselves and our worth. Society’s emphasis on material success can lead to feelings of inadequacy or failure when we fall short financially. Losing a job or facing financial setbacks can shake our confidence and sense of identity, leading to feelings of shame or worthlessness. It’s essential to remember that our value as individuals extends far beyond our bank accounts.


Relationship Strain


Financial stress can also put a strain on relationships, whether with partners, family members, or friends. Disagreements about money are among the leading causes of marital strife and divorce. Conflicting financial priorities or differences in spending habits can create tension and resentment within relationships. Moreover, financial struggles may lead to isolation as individuals withdraw from social activities due to fear of judgment or the inability to afford them.

Couple sat on couch showing visible tension

Financial pressures can put strain on us individually but also on our relationships

Access to Resources


Financial resources play a crucial role in accessing mental health care and support services. Unfortunately, those facing financial hardships may struggle to afford therapy, medication, or other essential resources for managing their mental health. This lack of access can exacerbate existing mental health conditions and perpetuate a cycle of distress and limited resources. We didn’t want money to be a barrier to accessing therapy. This is why we introduced our affordable therapy membership ensuring therapy was available to many and not just the few with the deepest pockets.


Sense of Control and Freedom


On the flip side, achieving financial stability can provide a sense of control and freedom that positively impacts mental well-being. Having a financial safety net and the ability to meet one’s needs can alleviate stress and instil a sense of confidence in navigating life’s challenges. Financial independence allows individuals to pursue their passions, invest in personal growth, and enjoy a higher quality of life.


The relationship between finances and mental health is profound and multifaceted. While financial stress can take a significant toll on our mental well-being, achieving financial stability can greatly improve our overall happiness and quality of life. It’s crucial to prioritise both our financial and mental health, seeking support when needed and practicing healthy financial habits that promote well-being. By recognising the connection between finances and mental health, we can work towards a more balanced and fulfilling life.


Your approach to your finances and mental health should be similar … if you’re struggling, don’t bury your head in the sand and hope things improve on their own. You don’t have to deal with it alone. There is support out there and you should talk to someone to see what options you have. Contact the team at Money Wellness who offer free, impartial advice as well as numerous resources to help you live more and stress less when it comes to your finances.



Founder of Links Wellness CBT Practitioner/Mindset Specialist