There is a deep yet often unconsidered connection between mental health and money.
The data is clear as day. The Money and Mental Health Institute discovered that…
- 46% of people with debt have a diagnosed mental health condition - 86% of people with mental health issues and debt say that debt exacerbates their mental health issues - People with depression and debt are 4x more likely to still have debt after 18 months compared to their counterparts
- Those with debt are 3x more likely to contemplate suicide due to that debt¹
What these statistics don’t reveal, however, is what comes first. Do mental health issues spark financial woes? Or do financial woes spark mental health issues?
The answer, of course, is yes.
The connection between mental health and money can’t be reduced to simple causation. Instead, it’s a spiral where both factors can feed off of each other.
Consider the following pattern…
» A financial crisis ramps up stress levels. » Ramped up stress levels activate negative self-talk. » Negative self-talk sparks unhealthy coping mechanisms. » Unhealthy coping mechanisms wreak havoc on the financial situation. And repeat.
This is an example of a financial crisis sparking mental health issues. But notice that a financial crisis isn’t the only situation that can cause the cycle. For instance…
» An unhealthy relationship ramps up stress levels. » Ramped up stress levels activate negative self-talk. » Negative self-talk sparks unhealthy coping mechanisms. » Unhealthy coping mechanisms wreak havoc on the financial situation. And repeat.
In short, there’s a two-way relationship between mental health and money. If you’re seeking to start building wealth and changing your life, you must address both. Practically speaking, that means steps like…
Reducing financial stress by building an emergency fund Increasing financial flexibility by reducing debt Unlearning toxic self-talk habits that spark anxiety and depression Developing healthy coping skills to alleviate stress
These can be daunting steps if you’re going it alone. That’s why it’s always best to seek the help of both mental health and financial professionals. They’ll have the insights and strategies you need to blaze a different path for your future.
¹ “Data Shows Strong Link Between Financial Wellness and Mental Health,” Enrich, Mar 24, 2021, https://www.enrich.org/blog/data-shows-strong-link-between-financial-wellness-and-mental-health