22/02/2024
Mental health and financial wellbeing are two key aspects of our lives that are often viewed in isolation from each other. However, the reality is that these two elements are deeply interconnected and play a crucial role in our overall well-being, with research showing that in England alone, over 1.5 million people are experiencing both debt and mental health problems.[1] Struggling with money problems can negatively impact our mental health in the form of anxiety, shame, guilt, and stress; on the other side of the coin however, making good financial decisions can be trickier when we’re not in a great headspace.
Ways to Care for Your Mental Health When You Have Money Worries
Money worries can be incredibly stressful and take a toll on your mental health. It's important to remember you're not alone in this, and there are steps you can take to care for yourself despite the financial challenges – including acknowledging and addressing your feelings and maintaining healthy habits like staying active.
It’s important to be kind to yourself and try to accept that things can sometimes be outside of your control or take a bit of time to fix can help you feel calmer. Remember that stress and anxiety are common reactions to financial hardship, and that’s ok.
Connect with others, whether that’s a trusted friend, family member, therapist, or someone else – this support can be invaluable during tough times. Mental Health & Money Advice and MIND are great online resource centres that can help you understand, manage, and improve your financial and mental wellbeing.
How to Improve Financial Wellbeing
It’s important to take control of what you can when you’re facing financial hardship. This means it’s important to do things like creating a budget. This will allow you to gain a clearer picture of your income and expenses, helping you to feel more in control and at ease. This can be an effective way of managing debt (or stopping it from happening in the first place). Saving where possible is also key, so you have money aside in case of unexpected expenses.
Getting free money and debt advice is also really beneficial, with organisations such as MoneyHelper and National Debtline there to support you.
Financial Protection is Key
Whilst having financial protection in place can’t guarantee to solve debt and financial issues, it can certainly be a good tool to manage them – and to prevent you from getting into debt in the first place should the unexpected strike. For example, certain insurance types like income protection or critical illness can help replace income temporarily or cover medical costs, preventing them from turning into debt burdens. Life insurance also provides debt protection for loves ones – if you have dependents with outstanding debt like a mortgage, student loans, or personal loans, life insurance can help ensure that they can cover these liabilities after your death.
Mental Health Support as Part of Your Policy
Some of the providers we work with at Owl Financial include added value benefits as part of their policies – including counselling and other mental health services. Make sure to refamiliarize yourself with any added benefit perks on your pre-existing policies, as three quarters of policyholders are unaware that insurers provide mental health support as an added benefit![2] Or, when taking out a new policy, discuss the perks on offer with your Owl Protection Adviser, who can walk you through your options and tailor your cover to your personal circumstances. We’re always here to help, and here to lend an ear in good times and bad.
[1] https://www.moneyandmentalhealth.org/money-and-mental-health-facts/
[2] https://www.covermagazine.co.uk/news/4124033/quarters-policyholders-unaware-mental-health-support-added-benefit
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