How Your Mental Health Directly Affects Your Money (And 5 Ways to Regain Control)

Ever had a rough day and found yourself splurging on something you didn’t really need? Or maybe your anxiety is so high that even opening your banking app feels like too much? If you’ve been there, you’re definitely not alone.?

Here’s something we often don’t hear enough: mental health doesn’t just affect how you feel—it directly impacts how you manage your money. And the hardest part? Financial stress can make your mental health worse, setting off a vicious cycle that feels impossible to break.?

This article will walk you through why this happens, and more importantly, how to start taking back control of your financial health—even on your toughest days.?

1. The Sneaky Ways Mental Health Affects Your Money?

Mental health can sneak into your financial life in subtle but powerful ways.?

Emotional Spending Is More Than Just “Retail Therapy”??

We’ve all been there— feeling down and getting a “treat” to make ourselves feel better. It’s called emotional spending and it’s not just about buying things; it’s about looking behind the purchase. It’s often a way of avoiding tough emotions.?

Sure, that quick dopamine hit feels great in the moment, but it can be followed by guilt or anxiety as financial pressures build up. Emotional spending is more than a financial decision; it’s a sign your mental health might need some attention.?

Next time you’re reaching for that impulse buy, ask yourself: 'Am I solving an emotional problem with a financial decision?' It might make you rethink that purchase and focus on what you really need emotionally.?

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Procrastination Doesn’t Just Delay Bills?

When a tough day hits, even simple tasks like opening a bill can feel overwhelming. It’s why so many of us avoid checking our bank accounts or leave unopened letters piled up on the counter.?

The problem? Financial procrastination could lead to late fees, missed payments, or overdrafts, which only add to your stress. It’s a cycle where each delay makes things feel more chaotic, much like letting laundry or dishes pile up—eventually, it becomes too much to handle.?

2. Control Your Mind, Control Your Money?

The good news is that managing your money doesn’t have to rely on willpower. Especially on low-energy days, you can create systems that work automatically to keep your finances in check.?

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Step 1: Automate Everything (Like, Yesterday)?

When mental health dips, decisions feel harder. So, take yourself out of the equation: automate your financial life. When you automate bills, savings, and debt repayments, your bad days won’t derail your finances.?

Here’s how you do it today:?

• Set up automatic transfers to your savings account right after payday. Even if it’s just ￡20 a month, you’ll start building and sticking to the habit.?

• Make sure all your regular bills are on direct debit so there’s no risk of missed payments or late fees.?

? It’s like setting your financial life on autopilot. When your mental energy is low, you’ll thank your past self for taking care of the essentials.??

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Pro tip:?

Take automation one step further by checking if your employer offers a workplace savings scheme. These schemes deduct your savings directly from your salary before it hits your bank account and place it in a separate savings pot. It’s a simple way to reduce the temptation of spending the money before it’s saved—and you’ll barely even notice it’s gone!?

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Step 2: Use the “Two-Minute Rule” for Financial Tasks?

When everything feels overwhelming, breaking big tasks into micro-steps can change everything. The “Two-Minute Rule” says, if something takes less than two minutes, just do it now.?

Paying a bill, checking your account balance, or moving ￡10 into savings—all these things take less than two minutes, but they add up to a sense of control over your finances. Start there, and the momentum will carry you into bigger tasks.?

You’d be surprised how much financial peace you can buy in two minutes. Just handle the small stuff and watch it snowball.?

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Step 3: Create a Financial “Mental Health Toolkit”?

Just like you might have a self-care routine for tough mental health days, it’s a good idea to have a financial “toolkit” ready to go when your energy is low.??

Your toolkit could include:?

• A bare-bones budget that outlines the minimum you need for essentials.?

• A list of low-energy financial tasks to keep you on track: Focus on small wins, like checking your balance or transferring money to savings.?

• Emergency contacts: Know who to reach out to when you’re overwhelmed—whether it’s a friend or a financial adviser.?

Just like you’d plan for a sick day, you can have a plan for your finances when you’re feeling mentally drained. It’s all about being prepared to make the hard days a bit easier.?

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Step 4: Create a “Money Moment” Routine to Stay on Track?

Even on good days, staying consistent is key to managing your finances long-term. Create a short, low-stress routine where you spend 10-15 minutes each week checking in on your money.

You can:?

• Check your balances.?

• Look at upcoming bills.?

• Plan for any big expenses.?

The goal here is to keep it short and consistent. You could spend 10 minutes every Sunday just checking in on your money. Treat it like a financial health habit that keeps your finances in check.?

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Step 5: Don’t be afraid to ask for help?

Too many people wait until they’re completely overwhelmed before asking for help. Reaching out for financial advice, whether it’s from a professional, a friend, or even using a budgeting app—can help you avoid financial stress.?

If your mental health is seriously impacting your finances, consider reaching out to a charity like Mind or a financial adviser for guidance. Help is available—and asking for it is a strong step in the right direction and something you can be proud of.?

We’ve all been there—getting help is the smartest move you can make.??

3. Final Thought: Take Control of Your Finances One Mental Health Day at a Time?

We all have days when our mental health takes a dip, and those days can make managing money feel impossible. But it’s important to remember that managing your finances doesn’t require perfection—it just needs a bit of preparation.?

When you set yourself up with systems, small habits, and a strong support network, you don’t need to be in a perfect mental state to keep your finances on track.?

This World Mental Health Day, commit to taking one small step toward financial wellbeing. Automate a bill, use the two-minute rule, create your mental health toolkit, and when you’re ready, share this with someone who needs it too.?

Mental health and money are linked, but you can take back control. Let’s build systems that work for us, no matter what your mental health throws at you.?

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