Money Stress (Part 1): Mental Health & Finances go hand-in-hand

By: Kaneisha Mitchell

Money Stress (Part 1): Mental Health & Finances go hand-in-hand

Americans are enduring hard times right now. Whether it be the quarantine, uncertainty of the job market, career change, housing issues, schools, mysteries and risk surrounding COVID-19, issues on the job, or relationships -- people are stressed out. Increased stress can lead to poor mental health. Your mental health changes from day to day depending on a number of factors such as sleep quality, eating habits, stress, physical health, and your overall mood. Here is how mental health can take a toll on your financial situation:

1. Avoidance

It takes an individual resilience, stamina, and a lot of concentration to tackle bills. Sitting down and creating a budget causes anxiety. Budgeting causes people to have to face the facts which can be emotional and at times painful. It becomes tempting to just avoid those sorts of problems and emotions.

2. Your Life Feels Out of Control

When you feel as if you are losing control over your mood and your thoughts, you start to feel as though life is out of control too. Especially your financial life.

Who wants to save for retirement, a new house, or any big purchase when they start to lose hope regarding their future and feel as though their life is spinning out of control. Buying something immediately or trying to control an aspect of your life immediately might make you feel like the one thing you can control is your ability to handle the right now.

3. Desperate for Temporary Relief

No one wants to be in pain because even though there are different levels of pain, pain still hurts. When someone is in pain, they will do almost anything to get out of it. The temporary relief one seeks can hurt you in the long run. Many people do something in the “right now,” whether it is buying a car you cannot afford, new shoes, purse, or make a life changing impulsive decision just to obtain some momentary pleasure. It is the reason therapist invented the term “retail therapy” and “survival mentality”. The chance of long-term financial distress based upon making those type of decisions is high.

4. Self-Esteem Falls

Far too often, the worse you feel, the worse you feel about yourself. Declining self-esteem and self-worth cause people to try and overcompensate. To maintain the projection of a successful image, low self-esteem can cause you to buy overpriced clothing, a name brand watch, or even a luxury car. (There is nothing wrong with luxury items if you purchase them for the right reasons and they cause no negative financial impact on your life.)

5. Haunting Unhealed Wounds

Emotional wounds that never healed get re-opened as your mental health declines. When you are feeling down, your brain will recall all the other times when you felt similar feelings and those just might be the lowest points in your life. And for many people, that leads to changes in financial habits.

6. Energy Levels Decrease

Poor quality of sleep, increased feelings of fatigue, and increased trouble staying on task are often due to a decline in your mental health. These things make it difficult to handle debt let alone take action. Thinking about the bigger picture becomes almost impossible when you are not in the right state of mind.

7. It’s Tough to Think Clearly

Making decisions, planning ahead, and organizing your financial situation may feel like a difficult battle that you are unprepared to fight. It can be hard to think about your grocery list, let alone your financial future when your mental health is on the decline.

There are steps you can take to improve your mental and financial health. Look out for: Money Stress (Part 2): Making Financial Stress, Less Stressful


Hey… have you heard of my financial company, KM Financial Consulting (KMFC). KMFC provides you with the necessary tools needed to fix your relationship with money: from financial education, to money mindset, to managing assets, implementation strategies, and reducing financial risks.

At KMFC no matter your financial stage we have something to offer you. Book a consultation to start your journey towards financial freedom, lessening your financial stress, and the creation of generational wealth.

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