Skip to Content

Saving Money & Mental Health

<strong>Saving Money & Mental Health</strong>

Sharing is caring!

Emotional Security and Savings

Feeling financially safe and secure can impact our emotions, and our ability to manage them. When we have no savings, our finances are unpredictable and we have money worries, we may find ourselves in a constant state of anxiety for example or feeling low in mood. When we feel financially secure and have less stress due to finances, we are more likely to be able to save, as our financial decisions are less informed by fear and more by logic. In other words, the safety net of having savings can help relieve stress and anxiety. 

People who are able to manage their stress and anxiety to assess their finances objectively, and make decisions for the long term, are less likely to find themselves succumbing to urges to impulse buy. Impulse buying can provide us with a dopamine hit – aka a chemical release of hormones that help us to feel pleasure and reward – which can be tempting for those who are struggling with their mental health in an attempt to feel better. It can also be tempting for those who are struggling financially, as it can help individuals to feel better in the short-term about all that they feel they are sacrificing due to financial constraints. 

When people have savings, this can lead to a sense of achievement and accomplishment. This in turn can often manifest itself in a “safer” approach to money, such as avoiding high-cost credit cards with large interest rates, and planning for retirement. The emotional security that having savings can provide, can help people to achieve other more long-term goals such as going on holiday, getting onto the property ladder, planning financially for having children. Having this perceived sense of control over their outcomes and destiny can then further improve their sense of emotional security. 

Improving Emotional Health to Increase Likelihood of Saving

Fortunately, there are several steps that one can take towards improving their ability to manage their emotions, and improving their ability to achieve successful savings goals: 

• Take time for yourself – Taking a few moments each day for self reflection and relaxation is essential for developing emotional security. Try meditation, yoga or simply take a walk outside – whatever works best for you! 

• Build a support system – Having a strong network of friends and family who understand your emotions and provide unconditional support is essential for maintaining good mental health. 

• Set achievable financial goals – Setting realistic goals based on your spending habits is key when it comes to creating a successful savings plan. Automating transfers from your checking account into your savings account is an easy way of helping yourself stick with those goals! 

• Seek professional advice – Financial advisors will help create a personalized plan tailored specifically for you that takes into account all aspects of your life including short term planning, long term investments and retirement saving objectives. 

Increased Control and Savings for Anxiety

Anxiety can arise from worrying about the future and fearing the worst. This can arise from worrying about finances, paying the bills and planning for the future. Gaining control over your finances can provide an immense sense of relief and satisfaction, and reduce anxiety.

One of the key benefits of increased control over finances is the potential for savings. Having a structured approach to budgeting and financial planning can help you take control of your spending, enabling you to plan ahead for future needs such as holidays, retirement or unexpected bills. It is essential to have an understanding of where money is going along with information about savings rates, investments and interest rates in order to make informed decisions about how much should be saved each month. 

Having a savings plan can help keep track of money that would otherwise be spent, helping you identify areas where overspending happens and making sure that any extra income is used effectively. A simple way to start saving money is by setting aside a certain amount each month when you get paid; this could be done through salary deductions or by transferring money into a separate account every month. Additionally, creating budgets based on priorities such as bills and rent payments helps balance out expenses while providing peace of mind knowing that necessary payments are being made on time. 

Overall, gaining control over finances and implementing an effective savings plan provides many mental health benefits including reduced stress levels, improved focus and greater self-confidence from achieving goals set out within a budgeted framework. Not only does increased financial literacy allow individuals to make better decisions about their spending habits but it also encourages healthy behaviour related to physical activity which ultimately contributes towards improved mental wellbeing overall.

Intentional Savings: Planning for Positive Future Events for Overcoming Depression

Behavioural activation is a treatment often used to overcome depression and involves scheduling activities that offer a sense of achievement, closeness to others or enjoyment. Saving and reducing financial pressures and stress can improve self-esteem and increase the opportunity for achievement. It may also help individuals with depression to save for activities and experiences that may improve their mood. This may also help individuals with depression to plan for the future, which they may struggle to look forward to otherwise due to their low mood and negative thoughts. 

In addition to providing motivation and potential moments of joy in the future, intentional savings plans allow those dealing with depression to reduce their spending and gain control over their finances once again. This is especially true when it comes to medical expenses; by setting aside a fixed amount each month towards medical bills or other related costs, individuals are better able to manage expenses without feeling financially burdened by their condition. 

No matter their length or focus, intentional savings plans can help individuals struggling with depression to have hope of something to look forward to. Such plans place a strong emphasis on planning — which can often be difficult when overwhelmed by anxiety or depression — but it is important to remember that this is not only achievable but necessary in order to ensure that there are enjoyable experiences in the future. 

Overall, intentional savings can play an important role in improving mental health while also helping individuals dealing with depression stay on top of their finances and plan ahead for exciting future events. While it may seem daunting at first due to difficulty making decisions or feeling overwhelmed by anxiety, engaging in these practices will slowly but surely provide lasting benefits both mentally and financially down the line.

Sharing is caring!