How Your Finances Affect Your Mental Health?
Money is very important for all of us as seldom do we find things in our lives that are not related to money in one way or the other. Though we have all heard and maybe have experienced the phrase that money can’t buy happiness, it starts affecting our lives for sure if we get less of it. But if you are wondering about How your finances affect your mental health, then the following read is for you.
Our financial habits play a huge role in building up our mental health. This article will have a closer look at the money and mind connection and what you may do to ensure better mental health through financial stability.
How financial stress affects mental health?
If you constantly think about how you will be making the end meet and how you’re going to settle your debt on the credit card, you will always start feeling down and in a negative space. And for sure, the opposite is true as well. If you don’t have all of these concerns, you will feel you have a lot better life and lifestyle.
These are the findings of an article published in CNBC; in this article, the author has said that statistically speaking, the household income is very strongly linked to both the emotional wellbeing and the personas evaluation of their quality of life.
As per its view, the higher the income may get leads to a significant reduction in the negative emotions.
It may also improve the overall mental wellbeing up to the point that an annual salary of R1 million. After this, the psychological benefits of the higher income are a lot less important.
In a very simple language, money may make you happier only up to a significant point, and you won’t necessarily have the sunnier outlook on life only because you’re earning $30 million a year as opposed to the $20 million.
But the bigger difference between the couple of thousand a year and the $1 million may make a huge difference to the mental state you have at this moment.
And we are not only referring to surface-level happiness; studies have shown that it is very likely that there is a very direct relationship between an increase in income and the reduced incidence of serious mental illnesses.
The Security And Happiness Factor
Everyone wants to feel that they may give for their family. Anyone who has experienced financial insecurity knows that this kind of stress may trigger panic, anxiety, and depression. If you have a lot more debt on your head than you can pay off or don’t know how you will feed the whole family yours, it will affect the mental state you have. The only exception to this is the mortgage.
The 2004 study published in Housing Studies has found that homeowners have a lot lower psychological distress levels than renters. Of course, the mortgage only lowers the total risk of mental health if you may make your mortgage payments without putting yourself under pressure. So how do you know How your finances affect your mental health?
You have to understand that financial and psychological stress can be highly empowering on your mental health. Being aware of the link between financial and psychological stress may help you better monitor your mental and financial wellbeing and set you on a path to have greater happiness and health. As with many things in your life, the ideal approach is the balanced and informed one.
If you take out a loan or sign up over a credit card, it is important that you do it for the right reasons and that you may meet your debt commitments without even stretching yourself in financial matters.
Approach your money affairs with a mature and thoughtful approach, and you will have a greater chance at lasting happiness and security.