We’re learning more and more in recent decades about just how important mental health is – in fact, it’s just as important as your physical health!
But what exactly is “mental wellness?”
According to the Global Wellness Institute, mental wellness has four key components (thinking, feeling, connecting and functioning). It isn’t just a state of being or a lack of mental illness – it’s an ongoing process that “helps us to build resilience, grow, and flourish.” And while mental wellness happens internally, it can also be impacted by external stressors (like your finances).
Luckily, you can take steps to recognize those stressors and make changes to alleviate them, and we’re here to help. Read on to explore six ways your money might be affecting your mind (and what you can do about it).
How Do Finances Impact Mental Wellness? 6 Facts About Money and Your Mind
1. Feeling financial stress is common
Finances and mental wellness are inextricably connected. One recent survey found that a whopping 52% of Americans report money as their biggest stressor – beating out even health concerns or current world events. That number was also a 10% jump from the previous year’s findings, indicating that financial stress isn’t just common, it’s getting worse.
What You Can Do: It’s easy to get stressed about money and avoid it altogether, but that might actually hurt more than help. Instead, consider connecting with a financial advisor who can guide you in making a plan and keep you on track, while also offering trustworthy advice.
2. People don’t like to talk about it
Money may make the world go ‘round, but it’s not a great conversation starter here in the States. In fact, 62% of Americans find money a taboo subject for regular conversation. However, 66% indicated that they “believe money conversations can help more people achieve financial freedom.”
What You Can Do: Sharing your concerns can be a huge weight off your shoulders. Try to find a trusted friend, family member, or financial advisor you can talk to about your money, even if it feels uncomfortable at first!
3. Debt can make mental wellness more difficult to achieve
Debt, particularly high-interest debt, can be a major source of mental strain. Over 77% of Americans carry debt, and over half of those individuals “always or often feel stressed” about it. Additionally, a significant amount of respondents attributed debt-related stress to sleeping problems, anxiety, depression, and more.
What You Can Do: The first step to taking control of your debt is to create a repayment plan. You may wish to prioritize high-interest debts and explore options like consolidation to lower your interest rate as well.
4. More money really can make you happier
Although you may have heard that income only increases happiness up to about $75,000 – that theory has been countered in recent years. Forbes writes that when income goes up, general life satisfaction also increases, without a limit. Financial stability really does make you happier!
What You Can Do: While you may not have total control over your income, you do have control over what you do with it. Think through ways you can get the most wellness out of your income, both now and in the future. For example, many people find splurging on experiences rather than items to be more fulfilling.
5. It’s more than just the number in your bank account – external factors have an influence, too
Financial stress doesn’t exist in a vacuum. Bankrate reports that “economic factors, such as inflation, rising interest rates and job security, are to blame” for rising financial anxiety in Americans. The top reported stressor from that list? Inflation and rising prices.
Related: Click here to listen to “An Abundance Mindset: Giving Back to the Community Through CASA”
What You Can Do: If you’re feeling stressed about economic factors that feel too big to tackle, consider volunteering or giving back to your community on a regular basis. Helping others can take your mind off your own worries and foster a sense of connection.
And if inflation is taking more of your paycheck than it used to, consider using that data to negotiate a higher raise next time you hit your annual work-versary. For example, a 5% raise might be negotiated higher if you point out that inflation rates were 3.2% from February 2023 to 2024.
6. Your age may play a role
Lastly, remember that financial stress can impact people differently depending on their age. millennials and gen X-ers are most likely to feel their wallets burning, with 55-60% reporting finances as a cause of stress. Gen Z trails closely behind at 52%, while just 45% of baby boomers are part of the “money gives me anxiety” gang.
What You Can Do: Develop a financial plan that considers your future needs and goals, keeping in mind that the wallet worries you have now will likely evolve over time. Becoming a homeowner, starting a business, creating a family – all of these events can bring new stresses to the forefront, and being aware and proactive can help.
Related: Click here to listen to “What Does Health Look Like (and How Can You Be Healthy)?”
Your finances and your mental health are deeply intertwined. By understanding how money impacts your well-being, you can take proactive steps to create a healthier financial future, and a calmer, more balanced mind.
Schedule a Complimentary Consultation
Want to feel less stress about your money? Click here to schedule a complimentary consultation with a member of the PrairieView Wealth team.
[Disclosures]
PrairieView Wealth Partners, LLC is a registered investment advisor. Information in this message is for the intended recipient[s] only. Please visit our website prairieviewwealthpartners.com for important disclosures.
PrairieView Wealth Partners, LLC often communicates with its clients and prospective clients through email and other electronic means. Your privacy and security are very important to us. PrairieView Wealth Partners, LLC makes every effort to ensure that email communications do not contain sensitive information. If you are not the intended recipient of this communication, please delete and destroy all copies in your possession, notify the sender that you have received this communication in error, and note that any review or dissemination of, or the taking of any action in reliance on, this communication is expressly prohibited. We remind our clients and others not to send PrairieView Wealth Partners, LLC private information over email. If you have sensitive data to deliver, we can provide secure means for such delivery. Please note PrairieView Wealth Partners, LLC does not accept trading or money movement instructions via email. Please visit our website prairieviewwealthpartners.com for important disclosures.
Please remember to contact PrairieView Wealth Partners, LLC if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.
The information provided herein is for informational purposes only and does not constitute financial, or legal advice. Investment advice in an advisory capacity can only be rendered after delivery of PrairieView Wealth Partners, LLC’s disclosure statement (Form ADV Part 2) and execution of an investment advisory agreement between the client and PrairieView Wealth Partners, LLC.
