Don’t Let Your Finances Affect Your Mental Health

mental health

Finances and mental health

If you’ve ever experienced money trouble, you know how heavy it can hang on your mental health.  I’ve been so broke I was only able to put $2 in my beater of a car.  I’ve had to turn eat shitty, limited choices of food because I couldn’t afford anything else.  It sucks, and I’ve vowed never to return to that spot.  

Being in debt, not being able to do any fun things, constantly worrying about money takes a toll on your mental health.  It’s a huge weight.  

 

Since I’ve gotten interested in money and actively worked to get my finances in order, start saving and investing, and improving my financial literacy through reading, studying and staying up to date with the financial world.  I’ve found I am much happier and healthier in all regards.

 

How can you get smart with money and get your finances in order, to remove the mental strain of a bad money situation?  Here are a few strategies and tricks that have helped me.

 

Get out of debt

He’s said it before.  She’s said it before.  I’ve said it plenty of times.  The key to building wealth and getting your money in order is getting out of debt.  I wagger debt is the number one contributor of money stress and how it weighs on your mental health.  How to actually do this is easier said than done.  You need to get serious with yourself and stop spending though.  Eat less and more boring food.  No restaurants.  No more going out or extra things for awhile.  It will take some sacrifice but you need to buckle down for the short term and focused on the goal of losing the dirty hold of debt.

 

Stay current on the market

This is much easier than the hike that getting out of debt can be.  Download a few apps, read some blogs, subscribe to some publications – Like Agora Financial to see whats happening in the market and where its going. You might think wall street and the stock market looks harder to read than mandarin, but with a tiny bit of research and consistency it all begins to make sense.  Stay involved and current and you will begin to make better financial decisions.

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Learn how compound interest and investing work

Investing used to seem hard.  For years I sat around humming and hawing.  Thinking about it now and again.  Thinking; I’m getting older I should start investing.. But where do I start?  I decided to start reading about it and realized how simple it really is.  

 

I actually started with a financial advisor, but since reading more and more about money and investing, I pulled my money out to avoid the high fees and have more control over my money.  Not saying this is the best play, you should always consider approaching a professional.  Make your own decision here though and do your research.

 

A huge motivator to get right with my money and stay consistent to relieve the stresses money had on my mental health.  Was learning how compound interest worked.  Essentially, as the market grows, and with inflation, your money compounds over time.  So after 25 or 30 years the amount of money compounded will be much higher than what YOU’VE actually put in.  Its like your money working harder than you.

 

I loved the concept of my money working hard than me.  And it’s amazing what a simple few hundred dollars a month or week can turn into after a number of years.

 

 

Save more than you spend, every month

Again, a simple concept that’s been beaten to death, but bares repeating.  Do not spend more money than you make.  Always save at least something from every pay cheque.  This builds wealth and more importantly, it keeps you out of debt.  Both wealth and debt compound.  But in opposite ways.  Which way do you want your money to go?  Negatively, or positively?  

 

I know which way my money will be going.

 

Don’t let saving/investing consume you

Part of the reason you want to be financially free and secure, is so you don’t have to worry about money.  Worry causes mental stress.  Sure you might be just beginning your journey to becoming financially literate and getting out of debt.  But don’t let finances consume your life.  Get educated, make a plan and follow the system.  Consistent education and checking the pulse on your progress is standard, but don’t let it take over.  Life is about balance. As important as money is in our lives, it’s not the only thing.

 

Here are a few quotes by famous investors and businessmen that speak to this sentiment.

 

If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring”.  

-George Soros

 

“A business that makes nothing but money is a poor business”.   

-Henry Ford

 

Don’t let finances affect your mental health

Money is a huge part of life, get smart with it and don’t let it bring you and your mental health down.  Apply the few above tips and strategies to your life, and subscribe to Agora Financial to start building wealth today.

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Author: Charles

Currently located in China, teaching English and working towards Financial Freedom. I write about money, travel, personal development and more!

2 thoughts on “Don’t Let Your Finances Affect Your Mental Health”

  1. The weight of finance is often understated when it comes to mental health. We’ve all heard about ‘financial stress’ when it’s about those folks living paycheck to paycheck, or who can’t scrape together $400 for an emergency, but it’s much more widespread than that.

    You make a great point with your last paragraph – I have to work very hard to make sure I don’t get sucked into the ‘optimisation’ loop and lose all sense of perspective when it comes to finance.

    Have you considered why this financial weight might be the case for so many people? My theory is that – like so many ‘taboo’ topics – we simply don’t know how to express ourselves when it comes to finances. It’s hardly dinner-table talk, which sticks with you as your grow up and then manifests itself as awkward mumblings to your spouse or frustration with your economic situation (across all stratas).

    Anyway – I just wanted to say that this is a great post. A pleasure to read. 🙂

    1. Hey Sara, thanks for the comment!

      I think you’re right. We don’t talk about money enough. And there isn’t enough education around it. It people understood it better, they would probably stress about it less. That could be said for all things in life.

      All the best in your future and pursuit of wealth and happiness!

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