How to Manage Finances When Your Mental Health is Low

Discover effective financial management strategies when struggling with low mental health. Take control of your financial well-being and alleviate stress with these expert tips.
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Coping with mental health challenges can present significant difficulties, particularly when combined with the daunting task of managing the day-to-day aspects of life, particularly finances. Financial pressures, ranging from the necessity of savings to navigate the housing market, grappling with increasing interest rates, and meeting utility bills and daily expenses, can soon become overwhelming.

Managing debt, rent, mortgages, savings, and food expenses - coupled with the potential temptation to overspend on material possessions - can significantly impact our mental well-being. It may seem like an endless cycle, where momentary joys transform into fleeting happiness, leading us to seek short-term solutions for long-term financial challenges. However, staying on top of our money matters is a vital aspect of life that should be addressed. So, how do we navigate through these challenges?

In this blog post, we will share some invaluable tips on how to manage the pounds and pennies when our mind is just saying ‘no!’

Set Small and achievable Goals: 

Establishing realistic and easily achievable goals is vital, especially when managing our money; kindness remains crucial in this process.

Begin by setting small goals, such as paying off a minor debt or creating a list of expenses. These steps are the foundation for taking control and having the tools to create things such as your monthly budget in the future. 

Remember, not all tasks have to be completed at once; take it a day at a time and celebrate the small victories just as well as the large ones; this boosts our confidence and motivates us to tackle larger financial aspirations.

Seek Professional Help:

If you're feeling lost when it comes to managing your money, seeking the assistance of a professional can be truly valuable. Whether it's a financial advisor, a mental health counsellor, citizen’s advice, or a trusted family member or friend, their guidance and support can help you gain control and alleviate any anxieties about your finances. Reach out to someone you trust and watch as the weight of worry lifts off your shoulders. 

Create a Budget and gain control: 

As mentioned before, creating a budget is an important tool for managing and feeling on top of your outgoings. Start tracking your expenses for a month so you know where your money is going, then create a budget that works for you and your financial situation. Many of today's banks have features where you can track expenditures and create budgets, to help curb spending and make saving and budgeting easier. When reviewing your expenses and crafting your budget, it is crucial to be honest with yourself and allocate funds exclusively towards necessary items and costs. Stay committed to your budget, make necessary adjustments, and watch your money confidence soar. 

Establish an Emergency Fund:

Saving and building an emergency fund can be a great financial goal, especially when life (and our mental health) can be unpredictable. Once you’re on top of your budget, set aside some money each month and gradually build up a nest egg in case of emergencies. Having this fund can offer peace of mind and security and prevent the need to rely on credit cards or loans, which can add to the stress in the long term.

Be Kind to Yourself - compassion is key

Above all, it is crucial to practice self-compassion when striving to rebuild or maintain control over your money during a period of feeling low. It is totally understandable to lack the enthusiasm, energy, or mental clarity needed to manage things when we’re at our lowest. Remember to be gentle with yourself and approach each day as it unfolds. Acknowledge and celebrate the progress you make, no matter how seemingly insignificant you think it may appear.

At My Black Dog, we understand the challenges that life brings. We empathise with the daily grind, the hardships, and the obstacles you encounter. However, we can discover invaluable support by coming together and realising that we are not alone. 

My Black Dog offers a free service that doesn't add to your financial burdens. We are here to listen, assist, support, and guide you through it all. If you find yourself overwhelmed and struggling with financial difficulties, please don't hesitate to reach out.