While apps like budgeting and spreadsheets can help you save money, it’s also essential to look past the numbers to get a full picture of your finances.

 

During a time of crisis, your mental health can play a role in your financial decisions. Having well-functioning mental health can help you manage your stress levels and keep from developing destructive habits.

 

Although there are varying mental health issues, some of these can lead to financial problems. Here are three scenarios that can affect your financial situation.

 

Overspending

Sometimes, it’s fun to indulge in some of the things that we don’t need. However, it’s also important to remember that there are times when we need to balance our financial goals with the need for immediate gratification. According to a financial planner and certified family therapist, Megan McCoy, there is a point in time where you need to stop spending and start prioritizing the necessities.

 

Studies have shown that people who suffer from compulsive buying disorder are more prone to experiencing debt problems. This condition involves spending excessive amounts of money and developing a feeling of release after a purchase.

 

If you’re struggling with this issue, try these strategies to stop shopping compulsively. According to McCoy, keep some of the items in your cart for a couple of hours to enjoy the excitement of the purchase before returning to see if you want to keep them. Also, some banks allow you to lock your credit and debit cards. This will help prevent you from spending more money.

 

Although these strategies are generally effective, it’s also important to consider seeking professional help. For instance, financial planning can be a beneficial option if you need more help with managing your finances.

 

Excessive Frugality

Fear and anxiety can help us survive, but they can also affect our mental health. They can play a role in our attitude toward money. You might be hoarding your savings if you’re constantly chasing bargains and maintaining a frugal lifestyle. 

 

Start by taking a couple of minutes to analyze your current financial situation. According to financial therapist Robin R. Norris, it’s important to remember that your feelings about money come from your earliest memories.

 

Decreased Retirement Savings

According to a study conducted in 2017, people who suffer from psychological distress are more prone to having lower retirement savings. The study, conducted by researchers from Medica Research Institute and Cornell University, found that individuals with this condition were more likely to have lower savings.

 

The researchers noted that people with this condition are more prone to having lower savings. They also said that these individuals are less likely to take risks with their investments. This could result in them having less money saved for retirement. At a healthy clip, investing in retirement accounts can be carried out with a balance between high-earning stocks and safer bonds and cash.

 

If you’re having a hard time motivating yourself to save for retirement, try these strategies to help improve your motivation. One of the most important steps that you can take is to accept how you feel. This can be easier said than done, as it can be hard to lower your expectations on a daily basis. Having a goal set can be broken down into smaller tasks.

 

If you’re struggling with depression, then it’s important to seek professional help. A therapist can provide a safe environment for you to work through your issues and develop effective strategies to address them.

 

Managing Finances and Emotions

Getting through the pandemic, unemployment, or other crises can be hard, especially if you’re not able to find a job. One of the most important steps that you can take to improve your self-care is to exercise regularly and get enough sleep. According to the CDC, getting enough sleep can help lower stress levels.

 

If you’re still having issues, then it’s important to seek professional help. Various websites provide a list of therapists and other mental health providers.