26% of people say thinking about finances makes them anxious, as research highlights a link to mental health

Posted on

More than a quarter of people feel anxious about money, according to research from the Money and Pension Service (MAPS). People that have recently experienced poor mental health are more likely to worry about finances, which in turn can further harm their wellbeing.

The research highlights the link between mental health and feeling in control of finances.

As financial security can affect many other aspects of your life, from your ability to cover daily expenses to planning for your future, it can have a huge effect on your wellbeing. Feeling confident about money decisions is important for mental health.

The research found that 57% of people who have experienced a recent mental health problem say thinking about their financial situation makes them anxious.

There are many reasons why poor mental health can affect financial security. It may mean people need to take some time away from work or that they don’t feel up to making financial decisions. This can lead to poorer financial security which exacerbates anxiety when thinking about money.

The research found that among those who have experienced mental health challenges in the last three years:

  • They are four times as likely to be behind on priority bills.
  • They are four times as likely to borrow to pay off their debts.
  • They are almost three times as likely to often borrow to buy food or pay bills.

Even among people who haven’t experienced poor mental health, many feel anxious when they think about finances. Yet, just 1 in 5 people who are worried about money seek support.

As the cost of living rises and budgets come under more strain, it’s more important than ever to understand your financial situation and seek help if you’re feeling worried.

Caroline Siarkiewicz, chief executive officer at MAPS, said: “We know that money worries and poor mental wellbeing often go hand in hand. This is a challenging time for many people dealing with the after-effects of the pandemic and cost of living pressures. This is tricky enough for anyone, but can be particularly challenging for people also dealing with mental health problems.

“Despite this, we know that many people across the UK generally struggle to talk openly about money.”

5 things to do if you feel anxious about your finances

1. Don’t put off reviewing your financial situation

If you’re worried about money, it can be easy to put off the task of reviewing your finances. If your mental health has been affected, this is even more likely to be the case.

However, being proactive can help you reach a better place financially, feel in control, and boost your wellbeing. If reviewing your finances seems like too much, breaking it down into smaller tasks each day can help. Start with the tasks that are most likely to affect your day-to-day finances, such as your budget or debt you may have, and gradually work your way up to tackling things like your savings or pension.

2. If you’re falling behind on payments, contact your creditors

The MAPS research highlighted how poor mental health can lead to people falling behind on priority bills or increasing the amount of debt they have.

If you’re struggling to keep up with financial commitments, one of the first things you should do is reach out to providers and creditors. It can be a scary thing to do but remember it’s something they will deal with every day.

Creditors may be able to offer support, such as giving you a payment holiday, freezing interest, or creating a long-term repayment plan. By taking this first step of getting in touch, you can begin to improve your long-term financial wellbeing and how confident you feel about the future.

3. Create a budget that prioritises your spending

A budget can help you better manage your finances. By setting out how much you need to spend on different areas, from utility bills to transport, you’re less likely to overspend and find that you don’t have enough at the end of the month.

When creating a budget, prioritise the different areas you need to spend on. Which bills are essential, and which areas could you cut back on if you needed to?

If you have debt, you should prioritise how you repay this too. Where possible, make the minimum payments for each form of debt to avoid falling into arrears, and make overpayments starting with the debt that has the highest rate of interest.

4. Remove temptations to overspend

With online shopping just a few taps away, it’s easier than ever to impulsively buy something and overspend. It’s more likely to happen when you’re suffering from poor mental health as you may seek the short-term boost a purchase can give you.

Making it more difficult to spend money can help you stick to your budget and start to improve your finances as it can give you time to think about whether a purchase is a good idea.

Think about when and how you may overspend. If you’re tempted by online shopping, removing saved card details from your computer or phone and unsubscribing from tempting newsletters can help. If you find you often dip into money allocated for other expenses when you’re out, creating a separate account that holds your disposable money can be useful.

5. Speak to someone about your situation

Several charities and organisations offer support if you’re struggling financially and mentally.

Seeking support and opening up about the challenges you’re dealing with can be difficult, but it’s a step that can give you access to expertise and resources that can help you build financial confidence.

If you’re struggling financially, Money Helper is a good place to start. You can receive confidential debt advice online or over the phone.

If you’re worried about your financial future, such as whether you’re saving enough for retirement, how to support loved ones, or how to get the most out of your money, we can help.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

 

We aim to keep our clients up to date on interesting and relevant financial news.

You can sign-up to receive our monthly newsletter by email, even if you’re not yet a client. Sign-up using the form below.

Client testimonials

I have always found Black Swan to be caring and understanding of my quirky lifestyle. I always feel they try to get me the best returns while respecting my current needs.

Sally Muir

A client since 2011

We would be very happy to recommend the support and service we receive.

Valerie Locks

A client since 2010

I have always been completely useless regarding finance - thankfully our financial adviser is not! I've retired with far more than I ever expected and investments continue to grow safely. So - thank you!

Bernadette Jane Warner

A client since 2000

Very happy with the professional service I have received and feel a lot happier now with my finances put in order.

Martin Field

A client since 2011

Julie Cooper was recommended to me by a work colleague. She has been very helpful, professional and has explained everything well. I would definitely recommend her services to anyone else who are interested in a financial review.

Steven Rooke

A client since 2018

…Service has been first class.

Hugh Fells

A client since 2012

My face to face meetings with Rob Young and Jessica Lyons have always been very open and understandable. My questions have been answered clearly and I have left feeling that my financial matters are in good hands.

Sandra Jack

A client since 2000

[A] safe pair of hands in a complex financial world.

Gary Middlehurst

A client since 2003

A reliable company with good communication skills and good knowledge of the financial markets.

Alan Evetts

A client since 2014

Maureen Pembridge is a long-time trusted advisor to our family. The market might fluctuate but her attention to detail is consistent.

Linda Burnard

A client since 2000

I am pleased to recommend Julie as a trustworthy financial advisor. She explains financial jargon in plain language, and always listens carefully to my particular financial needs and has helped me make the best of my savings.

Carolann Samuels

A client since 2010

I have always been satisfied with the way that Black Swan has handled my account. And I have always found the staff very helpful whenever I need to call the office.

Robert Anthony Matthews

A client since 2012

An excellent personal service from a person I know and trust.

Michael Dalton

A client since 2010

I am getting a very good services from Black Swan, they have got my investments sorted out which was in a bit of a mess.

Roy Jakens

A client since 2012

A good, efficient team providing clear ideas to shape a winning strategy.

Adrian Michael Levenstein

A client since 2011

Black Swan is a company to be trusted, with friendly staff and professional advisors.

David Brian Jennings

A client since 2017

I have been with Black Swan for many years. I have never wished to change anything. They give a good straight forward service.

Martin Barrett Brooks

A client since 2010

Andy Peters has been invaluable in firstly combining several pension pots and then giving excellent investment advice. It has given us a great deal of comfort to know that our financial affairs are in such good hands.

James Guillum Scott

A client since 2014

I find my financial advisor easy to talk to and feel that she understands my lifestyle. She is always available for help when I need her and explains in words that I can understand.

Margaret Ena Glasgow

A client since 2000

Andy is a first rate Director, excellent communicator and leader.

Ross Perry

A client since

Black Swan Financial Planning and Andrew in particular, are very clever at working out how risk averse we are, and coming up with solutions that we feel comfortable with. We are happy in the knowledge that we can continue to enjoy a comfortable retirement. Andrew Peters is a very, very friendly person who is great to chat to and easy to deal with. He explains things very clearly in layman’s terms, and if we still don’t understand, he explains it until we do!

Alan & Jane Dyer

Clients since 2012

We have always found Rob [Young] to be very approachable and knowledgeable. We have every confidence in the advice given and feel comfortable with the decisions we’ve made. There are certain opportunities that we wouldn’t have known about if Rob hadn’t brought them to light, which makes the advice good value for money as far as we’re concerned.

Peter & Pauline O’Halloran

Clients since 2013

Rob [Young] is extremely knowledgeable. I knew nothing about the different types of trusts which will not only secure my income in retirement, but also leave a legacy for my children. I’m glad that I sought his advice when I did.

Sarah Wilson

A client since 2015

I am extremely happy with the service afforded to me by the company and my adviser Julie Cooper.

Geoff Coxell

A client since 2010

My wife and myself have been dealing with Black Swan for a number of years. We have met with different representatives from the company over the years and have found all very helpful in their own way. We met with James [Anderson] a few years ago and found him very helpful and knowledgeable. He keeps in contact with us on a regular basis. We find the Company information very helpful and we feel very secure with our finances.

Andrew Kirchen

A client since 2015

I have always found my adviser to be easy to contact, very professional in his approach, yet friendly and understanding. I have a sense of an experienced company behind him, really on the ball financially and with good standards.

B McBean

A client since 2011

Partner with the most reliable and experienced team of advisers

Enter your details & we'll be in touch to discuss your needs.
Alternatively, contact us directly and speak to a member of the team.





    Subscribe to our newsletter