Whether you’re just out of college or a seasoned professional, everyone has to deal with the stresses of money. Taking care of yourself is essential if you’re feeling stressed about your finances. That includes taking care of your mental health.
It can be hard to manage both at once. But you can do some things to make sure that managing your finances doesn’t send your mental health spiraling. Follow these tips and tricks for balancing money and sanity!
Make a budget
Defining your goals is the first step to balancing your mental health and finance. For example, you may want to save up for a vacation or buy a new car, but whatever they are, you must write them down and make them real. Why? Doing so helps you focus on the future instead of what’s happening now (often stressful).
Take some time off work or set aside an hour every day and write down all your monthly expenses. Then, create a budget based on how much money comes in from each source: job income, side hustles, investments, etc. Try not to feel discouraged if, at first, this seems overwhelming. You can adjust later as needed!
If possible, try using an app like Mint to help create your budget automatically. Otherwise, please write it down by hand using pen and paper until you get used to doing this regularly enough that it becomes second nature for you!
Once you have created your first working budget, go back through it with fresh eyes. Do any items need changing? Are there places where there could be room for improvement? Making minor tweaks here and there over time will ensure everything works together smoothly like clockwork.
Set savings goals
A savings goal is a type of financial goal that involves saving money or paying down debt. Setting a savings goal will help you build up your emergency fund, preventing you from getting into credit card debt if something unexpected happens. It would be best if you had a plan for how much money to put toward your goals each month and ensure that amount reflects in the budgeting tools you use.
If possible, try to save the same amount every month to become automatic and easy. It can help keep you from going over budget on regular expenses like food and rent. Additionally, it gives you enough money left over at the end of each pay period.
If this isn’t possible due to income fluctuations (like during summer when school isn’t in session), consider putting more away when things are good. That way, it’s easier later when things aren’t as profitable immediately but still need attention.
Learn how to say no to improve mental health
You don’t have to say yes to every opportunity that comes your way. For example, if a friend asks you to help them move, say no if you’re already booked or don’t want the extra work. Or if they ask for financial assistance with something that isn’t necessary, be honest with yourself and know when enough is enough.
You can also set boundaries with your work life. If one of your coworkers always asks for favors and never helps others, speak up! If someone takes advantage of your generosity by constantly leaning on you when it comes time for projects or assignments, don’t feel guilty about putting an end to their freeloading ways.
It’s okay (and expected) to ask for help from others. Unfortunately, due to scheduling issues or other responsibilities, your friends and family may not always be able to give it right away. However, they’ll likely do whatever they can once they know how important it is for you (and possibly why).
Pay down debt
- Pay off your highest-interest debt first. The more you pay, the more you save on interest charges.
- Use a debt snowball to pay off your debt faster. It will motivate you and keep you moving forward. Each payment gets paid toward the smallest balance first, which means it’s accessible to you more quickly. In addition, it can motivate people who are having trouble getting started on their own to pay down their debts with a bit of encouragement from friends or family members, helping them out by contributing to the cause.
- Don’t use credit cards as an emergency fund—only for emergencies! Credit cards can easily lead us to spend money we don’t have. They cause stress and financial problems down the road when those bills come due, but we don’t have enough money in our bank accounts yet (which typically happens sooner than expected).
It is best to use credit cards for routine purchases like groceries or gas during emergencies only. Then, there is no chance of us running into trouble later when those payments come due without warning!
Watch your credit score
Credit scores measure how likely you are to pay back a loan. The higher the score, the more likely you’ll be approved for loans and get favorable terms, such as lower interest rates or extended repayment periods.
Credit reporting agencies (Equifax, Experian, or others) use different information to calculate your credit score. Here’s what each looks at:
Equifax — account history, payment history, and length of time on file with lenders and creditors
Experian — amount owed; amount paid in full; the number of accounts opened versus closed; length of time accounts have been open; types of inquiries made by lenders.
Don’t be ashamed of your situation despite mental health struggles
You are not alone. Millions of Americans face financial struggles. While it can be a personal experience, sharing your story with others is essential. Your friends and family may not understand what you’re dealing with unless they’ve been through something similar. Sharing your feelings will help you find support and comfort in others who have experienced similar situations.
You can get help. No matter how big or small the issue is for each person, resources are available to assist them in figuring out ways to solve their problems. Dozens of free counseling services are available through government programs such as Medicaid or Medicare. They can also be found online at BetterHelp or Psychology Today.
It’s okay to admit when things aren’t going well. But unfortunately, the stigma surrounding mental illness still exists today. As a result, many people feel shame when they open up about their issues because they’re worried about being judged by friends/family members who don’t fully understand what they’re going through day-to-day.
First-hand experience from someone else might provide insight into how other individuals deal with similar situations. That way, everyone involved understands where the other stands. So together, we could devise a holistic solution instead of throwing away money blindly.
Keep careful track of your finances to keep them on track
A budget is a plan for your money. It helps you keep track of your spending so you can see where your money goes. The budget lets you make intelligent choices about what to spend it on.
Importance of tracking your finances
If you don’t track your finances, it can be hard to know what’s coming in and going out. Without this information, balancing mental health with finance will be nearly impossible. Tracking expenses will also help you understand where funds are going—and if they are being used appropriately and within reason!
Use a budgeting app like Mint, or You Need A Budget (YNAB). Both apps have free versions as well as paid versions. Always review the app to ensure it does not collect or share any personal information you want to keep private.
Conclusion
Remember, the most important thing is to keep track of your finances.
Getting a handle on your money can be challenging when you’re struggling with mental health issues. But once you do, it will give you a sense of control over your situation and help put things in perspective.