Healthy Mindset

If you keep facing financial problems despite your best efforts, it might be time to look beyond budgets and consider if stress, mental health, or unhealthy habits are getting in the way. Addressing these problems can help you regain control of your finances and improve your overall well-being.

Mental Health and Money Problems

Financial problems can lead to stress and anxiety. And poor mental health can make managing money feel overwhelming. This creates a cycle that can feel difficult to escape. You obviously cannot budget your way into the upper middle class if you only earn minimum wage, but if you earn more than the poverty level for your area and notice you are still facing persistent financial problems, then it may be time to step back and consider the bigger picture.

Common Contributing Factors

• Chronic Stress or Anxiety: Mental health struggles can impair decision-making and make financial planning feel overwhelming.

• Unhealthy Spending Habits: Emotional shopping may feel fun but worsens your financial and mental health in the long run.

• Substance Abuse: Addiction to drugs or alcohol can drain finances, damage relationships, and make stable employment difficult.

• Gambling Addiction: Compulsive gambling often leads to significant financial losses, growing debt, and strained relationships.

Recognizing the Signs

It is important to recognize when financial difficulties are connected to deeper issues. Signs to watch out for include:

• Borrowing money or relying on credit cards to cover basic expenses.

• Feeling hopeless or overwhelmed by your financial situation.

• Using substances, shopping, or gambling as ways to cope with stress.

• Avoiding bills, financial responsibilities, or conversations about money.

If you notice these patterns, addressing the root causes can be a vital step toward improved mental health and financial stability.

What You Can Do

• Acknowledge the Problem
  The first step is to recognize and acknowledge the issue without judgment.

• Seek Professional Help
  For mental health issues, reach out to a therapist, counselor, or support group. For substance abuse or gambling addiction, look for free resources including local 12-step programs like Alcoholics Anonymous, Gamblers Anonymous, or other support groups.

• Build a Support Network
  Share your struggles with trusted friends or family. A strong support system can help you stay accountable and feel less isolated.

• Focus on Small Wins
  Take manageable concrete steps, like creating a simple budget, scheduling an initial therapy session, attending a free 12-step program, or banning yourself from gambling apps. Breaking overwhelming challenges into smaller steps makes them more manageable.

• Invest in Yourself
  Instead of spending your time and money on unhealthy habits and old patterns, redirect those resources toward meaningful self-care. Invest time in activities that bring you joy and fulfillment. Small changes can have a big impact on your overall well-being.

Reading List: Consider visiting your local library to explore books on the emotional side of money. You can borrow books for free and reading even one can have a big impact. Our recommendation if you are interested in how your mindset affects your finances is The Psychology of Money by Morgan Housel. It explains why people often make irrational money choices and how to develop better financial habits through patience and long term thinking. Also recommended is the SMART Recovery handbook for struggles with addiction and be calm. by Jill Weber for anxiety.