Why is organising your finances good for your mental health? Mind, the mental health charity says:
It’s those nagging thoughts in the middle of the night that cause us to lose sleep, cause gut busting anxiety and yes, it can become a vicious cycle leading to depression, relationship issues and even suicide. The Money Advice Service says that 16% of people say that debt has affected their relationship with their partner and 15% say it has made them withdraw from family and friends.
Is there anything you can do to break the cycle? It’s a tough message but doing nothing won’t help. If you compare improving your financial health to improving your physical health you need to “get off the sofa”!
In these situations accountability is good, going back to the gym analogy, sometimes we need each other to get us moving. Speak to a friend who is good with money, if you are a couple, be honest with each other about your spending and take an hour out to do this.
Organise your finances by:
- Creating a realistic budget so you know where you are. Look at what’s coming in and what’s going out.
- If the balance is wrong then look at how to reduce your spending to try and see if there could be a surplus which you could put aside for a rainy day.
- Look at all those direct debits – can you reduce your energy costs, what about that gym membership that doesn’t get used? Do you need all of those subscription services – do you have that much time(!)?
- Build your budget. Take control of what you spend on everyday items like food shopping for instance. How much will you spend on clothes?
- Look honestly at your debts. Is there anything you can do to reduce them or even reduce the interest rates. Make sure that you are paying off the most expensive first.
- If it all feels a bit overwhelming then talk to one of the excellent charities around such as the Citizens Advice Bureau, Christians Against Poverty and the Debt Advice Foundation or others.
Knowing where you are is key and this will help you move forwards. This is a good start to improving your financial wellbeing.