A few years ago, I received a surprise in the mail: a $500 bill for a recent x-ray. At the time, I was earning an entry-level salary in media (the equivalent of peanuts to the uninitiated), and the shock of having to figure out how to cover unexpected expenses had my pulse racing with anxiety and my head pounding with stress.
I was in good company. Research shows over and over again that our finances can wreak havoc on our minds. Money all the time topped the list of American stressors since the American Psychological Association began conducting its annual Stress in America survey in 2007; this contributed to what the APA believed “mental health crisis“risk in 2020. At the time, Americans were struggling with a recession caused by the coronavirus. Since then, food prices, record-high credit card debt and little student debt relief have added to their worries.
Chicago-based nonprofit Financial Health Network launched. I’m studying the link between our finances and our health in the past year after the pandemic, studying the literature and conducting a mass survey. The last research part, released in April, hired a focus group. Participants said worrying about money was affecting not only their mental well-being but also their physical health, reporting back and stomach pain so painful they were unable to work. (And that explains my medical bill headaches).
“There is a clear connection between mental health and stress and how we feel in our bodies,” says Angela Fontes, vice president of policy and research at Financial Health Network. Luck.
We can thank in part gut-brain connection for this. Stress and anxiety may manifest itself physically such as nausea, shortness of breath or abdominal pain, to name a few symptoms.
Moreover: the relationship between money and health is a vicious circle. Poor mental wellbeing can also negatively impact our finances. Fontes explains that this manifests itself in different ways: compulsive spending as a coping mechanism; Difficulty paying bills with heavy mental workload; missing work or performing poorly, which she says can affect pay and long-term success at work.
Consider that depression can lead to neglect of even the most basic hygiene, such as brushing your teeth, he says. Hara Crosswaite Brindle, a licensed financial therapist in Colorado. “We know that money isn’t something basic, it takes a bit of mental energy to manage it, so depression can mean that our money is being neglected in addition to our physical and mental health needs,” she explains.
Whether the chicken or the egg comes first, here’s how to ensure your physical, mental, and financial well-being are on the same page.
Take a break to reset your mind
According to Fontes, people fall into one of three categories: financially healthy; cope financially – live day to day, but do not prepare for long-term goals; and financially vulnerable—struggling with almost every aspect of their financial lives. This latter cohort consists of two subgroups: those who have experienced financial shock (and usually overcome it) and those who experience chronic financial difficulties, which increases the likelihood of long-term mental health problems.
This could be the result of financial trauma, generational debt or intergenerational poverty, lack of financial literacy, or even poor money choices. But the root of any of these money problems is emotion, says Crosswaite Brindle: “Whether it’s anxiety, depression, fear or avoidance, money is inherently emotional.”
She says seeing a financial therapist to discuss things like financial beliefs and spending patterns can help you manage your emotions so they don’t wreak havoc on your mental and physical health. “People can change their thoughts, feelings and behaviors with money, opening the door to a better financial situation,” she says.
Of course, some of the most financially vulnerable people may not be able to afford treatment. Fontes says many study participants coped by taking time to do one activity, such as exercise or meditation, to focus their attention in a different space that would make solving their financial problems more feasible. And that’s a good place to start.
“A lot of it is about control,” she says, explaining that big triggers for this cycle are unexpected expenses, such as accumulating debt. “Getting and doing something that helps restore a sense of control really seems like an important first step.”
Take small steps towards saving
Even if your finances aren’t in bad shape, you should still take preventative measures to ensure they don’t take a turn for the worse if your mental health takes a turn for the worse.
“This could look like sitting down once a week and going over your money or checking your savings and investment accounts to see if you can put away another $10 a month,” says Fontes.
A savings cushion will help protect against unexpected expenses. It can also help during tough times—like decluttering your home so you can feel better about your environment, or ordering food when you don’t have the energy to cook, says Crosswaite Brindle. “It gives you permission and the ability to access what you need or take time off without a financial hit to your family,” she adds.
“Savings is no longer always about the long game, but about how do we live a comfortable life now while thinking about the future?” says Crosswaite Brindle. “Not an either-or, but a both-and way of thinking.”