5 Red Flags That Financial Stress is Slowly Draining Your Mental Health

Did you know that there is a direct connection between your mental health and financial wellbeing? 

According to recent reports, approximately 46% suffering from debt problems also have mental health issues. 

It is also observed that people suffering from stress, tension and anxiety are likely to be going through a financial crisis. If it intensifies, it may also lead to fatal outcomes. 

To avoid such, it’s important to understand what the root cause is. In this blog, you’ll find insights into visible indicators that you’re going through financial stress. 

What is financial stress?

To address the situation, we must first know the problem. Financial stress is a scenario where a person suffers from anxiety and intense emotions due to money-related problems. 

The vicious cycle of money matters and draining mental health

It may lead to chronic depression, social anxiety, and piling insecurities if left unaddressed. 

Here are 5 red flags signifying that your financial issues are draining your mental health:

  1. Constantly worrying about meeting urgent needs

    If you’re always anxious about how you’re going to manage your immediate needs, maybe you’re going through financial stress. 

    Continuously altering small expenses like groceries, transportation and daily needs may make you feel in control but too much compromise and sacrifice for these needs may hurt you in the long run.

    Not having a supportive finance buddy to meet financial needs and not having enough courage to invest due to fear of losing your savings can also bring about financial stress. You should have confidence in handling your money and in placing them in vehicles where you can earn more.

  2. Budgetary matters make you anxious

    You’re afraid of creating a budgetary plan. It overwhelms you to check on your savings so you’d rather avoid it. 

    This is a sign that money threatens you as much as it matters to you. You have to “befriend” money and allow it to flow into your life. If it’s hard for you to make up your mind on where money sits in your life, this is another red flag that it may be causing you anxiety.

  3. Future goals stop you from spending on immediate wants

    Who doesn’t want a better, more stable future? In exchange, you may start compromising your urgent wants. As a result, you may end up like a hamster on the wheel. You run all day but lead nowhere. 

    Because unfulfilled wants can also lead to frustration, instilling a sense of struggle at every moment and affecting your mental health. 

    Preparing for your future is never a bad thing. However, sacrificing existing wants all the time and not living in the present can drain you and take its toll. It’s not about spending huge amounts on yourself. It’s also about rewarding yourself periodically and living a balanced life. 

  4. Spending too much without considering the budget

    If you don’t have a planned budget, you may struggle with money mismanagement. You are prone to spending more if you don’t keep an account of your bills. 

    This may be another sign that you are running away from your responsibilities and accountability.

  5. Socially isolating yourself to save extra

    If every social outing seems to cost not only your money but your mental peace too, then you may be stressed financially. Regularly going out and spending incessantly may not be wise. However, social anxiety can disturb your attitude towards people and the world in general.

    Social gatherings help you thrive in different setups. It breaks the monotony of daily routines. If you keep yourself isolated in the fear of losing money, you may end up losing precious relationships too. 

    This doesn’t apply to spending frivolously or losing sight of the goal. It means living your life more and enjoying everything which you set out to earn in the first place.

How to overcome financial stress?

Financial security helps get rid of 70% of stress in your life. It gives you the freedom to invest in a good personal life which impacts your lifestyle and relationships. 

Here is why financial security is important:

  1. Financial independence,
  2. Better lifestyle,
  3. Enhanced decision making,
  4. Better social circle. 

Here is why financial security is paramount for a good life:

  • Budgeting

    A budget gives you a rough idea about your daily expenses. It keeps track of your important needs and miscellaneous ones. You’ll often notice that you run out of money because of the additional expenses which can be easily postponed. 

    Budgeting gives you an idea about what those are and helps you address them.

  • Knowing where to borrow money when emergencies arise

    Financial emergencies may come at the most unexpected time and cause you to scramble for urgent funds. When these occasions arise, you should be prepared so that the money needed can be accessed right away. Being prepared also helps you prevent unnecessary stress. 

    SAVii’s affordable, reliable, and convenient solutions

  • Setting small goals and future goals

    Your future goals are important but your short-term goals help you recognize milestones. The journey to where you want to be financially independent doesn’t happen overnight. It takes years of discipline, learning, and practice to be stable. All goals, regardless of size, are important in your growth.

    Make sure to plot smaller, incremental goals in your journey. Reaching them will help you feel good about your accomplishments and boost your confidence even more.

  • Spending well

    Yes. You read it right! You cannot escape spending. But you can learn to recognize what’s worth spending your hard-earned money on. It may be on an investment which may offer you high returns. 

    It’s important to spend on yourself to experience fulfillment. It’s a subtle way to reward yourself for all the hard work you put in. It keeps you motivated towards achieving more. Just make sure that you will not overdo it.

  • Monitoring expenditure and savings

    All you really have to do to keep up with your financial and mental health is monitor your expenses. Spending is not really the issue. Being clueless about where your money goes is. 

    Make a plan. 

    For example, you decide that you’ll save 30% of your monthly salary. Keep that in your savings account. In case you have only one account, set a limit beyond which you won’t spend. 

    In today’s world, money is one of the essential elements of freedom. Make sure to do something about the way you handle it so you can live comfortably. Learn to manage your money well and take care of yourself without feeling guilty about it. 

    For any help you may need, your reliable Salary Finance Platform, SAVii, is here to provide assistance. 

    Stay tuned for more financial wisdom next week!