Your Mental Health May Be Affecting Your Financial Wellness

Source: ArtMarie / Getty

Do you get anxious every time you check your bank account balance? Have you ever impulsively bought something on TikTok because you thought it would make you happy? Or maybe you feel stuck in a job you hate but can’t bring yourself to ask for a promotion or even quit. Money matters can certainly stress us out but sometimes it’s the other way around and our stress and anxieties negatively impact our spending and saving habits. 

Your Mental Health May Be Affecting Your Financial Wellness

Studies show that people with mental health challenges are more likely to be in serious debt. Emotional overwhelm makes it harder to stay on top of financial management and reduce our ability to make smart, long-term financial decisions. In short, mental health struggles can leave us more vulnerable to financial difficulty and ultimately keep us feeling broke.

RELATED: Who Gon’ Check Me? Best Financial Apps For Budgeting

To be clear, personal financial strain isn’t necessarily the result of lifestyle choices or mental illness, financial stress isn’t just a thing that happens in your head. Structural issues like low income, debt, lack of savings, and discriminatory policies present real challenges to rising out of poverty. And that crushing debt and financial strain can in turn negatively impact your mental health and can themselves cause severe mental health issues like depression and anxiety. 

But sometimes, simply shifting your mindset can be the key to unlock financial freedom. We’ll explore common mindset traps and mental health challenges like insecurity, anxiety, depression, and low self-esteem that can drive poor financial habits plus some Biblical guidance to turn your habits and your finances around.

Scarcity Mindset

A scarcity mindset makes you believe there’s never enough—enough money, enough opportunities, enough success. This leads to a fear of investing in things that could help improve your life and financial situation in the long run like a financial advisor, a good education and healthcare, or even basic savings because you’re too focused on immediate concerns.

With a scarcity mindset, you’re more likely to hold onto your money out of fear, rather than use it as a tool to help create opportunities. Investing in your future might feel too risky or out of reach, but in reality, it’s often the only way out of the cycle of financial struggle. The Bible speaks about holding onto wealth, urging us not to measure our worth based on material possessions. In Matthew 16 verses 19 through 21, Jesus reminds his disciples not to focus too much on gaining riches on earth, because there is more abundance to be found in a relationship with God, who takes care of all of our needs. There’s no reason to be afraid of the future.

RELATED: Money Management Tips From Scripture

Anxious Avoidance 

Anxiety and depression can make it incredibly difficult to manage day-to-day responsibilities, including your finances. When you’re feeling down or unmotivated, it’s easy to ignore bills, avoid savings, or even delay seeking financial help. This kind of neglect can quickly escalate into debt and further financial strain, only adding to your stress and anxiety.

Taking small, intentional steps to address your financial responsibilities can provide some sense of control and ease the feelings of uncertainty that make anxiety worse. Creating a budget or even connecting with an advisor or therapist who can walk you through your money fears can free you from anxieties that lead you to neglect your financial future.

Low Impulse Control

Retail therapy is a real thing. Shopping can release dopamine, leading to feelings of happiness and satisfaction and who doesn’t want happier! It feels great in the moment to buy something new, but the happiness is fleeting. 

Many times, impulse spending is an emotional reaction to feeling down or stressed. It’s easy to believe that a new item or trendy product will somehow improve our mood or self-worth and it may temporarily make you feel better, but these purchases are short-term solutions to deeper emotional issues. To combat this mindset, it’s important to understand your values and goals. Before spending, ask yourself if what you’re buying is aligned with your needs, or if you’re trying to distract yourself from something else you may be feeling.

The Comparison Trap

Keeping up with the Joneses may be keeping you broke. Constantly comparing your life to someone else’s, whether on social media or in real life, can lead you to feel pressured to buy what others are buying in order to live the lifestyle others seem to be enjoying, even if you can’t afford such purchases and ultimately don’t need them.

Most of the images you’re comparing yourself to—especially online—are filtered, staged, or heavily edited. What you see isn’t the full story, and trying to match it won’t bring you lasting happiness or financial freedom. Whether it’s trendy skincare, designer clothes, or the latest gadgets, these things are not going to change your life but they may drain your bank account. 

The saying goes “comparison is the thief of joy” and the Bible encourages us to find joy in the Lord and in our own lives. Galatians 6:4-5 reads: “But let each one examine his own work, and then he will have rejoicing in himself alone, and not in another. For each one shall bear his own load.” You don’t have to measure your life against others, instead, recognize the progress you’re making in your own journey.

Self-Doubt and Low Self-Worth

Maybe you’re not comparing yourself to anyone on the outside, but you doubt who you are on the inside and don’t know your worth. This can manifest in your career and your financial choices. You may feel too nervous to ask for a raise or seek a promotion that would increase your earning or else you’re doubtful of your skills and ability to rise to the occasion in the workplace.

If you don’t believe in your worth, you may settle for less than you deserve in both your career and personal life. Allowing anxiety to silence you and keep you from advocating for yourself can result in your staying overworked and underpaid. See yourself as God sees you and know that your goals are achievable. As Romans 8 reads, “If God is for us, who can be against us?”

Remember, financial freedom doesn’t come from just earning or saving more—it comes from understanding and taking control of your mental and emotional relationship with money. With practice, prayer, and patience, possible to build a healthier, more confident approach to both your finances and your mental well-being.

DON’T MISS…

How To Tackle Finances In New Relationships

Podcasts For Every Mood: 10 Podcasts To Add To Your Rotation

5 Timeless Words of Wisdom From Our Grandparents

Your Mental Health May Be Affecting Your Financial Wellness  was originally published on elev8.com