May is Mental Health Awareness Month. We explore the undeniable link between financial health and mental health and suggest five simple strategies to promote both.
Money and mental health: the link
Numerous studies reveal a very clear link between money and mental health.
The American Psychiatric Association categorically states that ‘financial stress leads to mental health deterioration.’ and that ‘financial stress is a major exacerbating factor in mental illness’.
Make no mistake: good financial health is a critical factor influencing general wellbeing. It follows then that improving your financial health will have a positive impact on your mental health.
Financial health: one step at a time
It can feel overwhelming to get your finances in order – so overwhelming, in fact, that many people never even try. Not knowing where to start is a common barrier. And if you’re also dealing with mental health challenges, the task can seem even more daunting.
But here’s the good news: you don’t have to fix everything overnight. Small, consistent steps can make a big difference. Financial planning is a marathon, not a sprint.
Think of it like getting back into physical shape after years of inactivity. You wouldn’t expect to run 42km on day one. Instead, you might follow a ‘couch to 5k’ programme, starting with short bursts of running alternated with walking. Each session is a manageable step that gradually builds your strength and confidence.
The same principle applies to your financial health. You need a strategy – a ‘training plan’ – and then a series of achievable steps to move forward. Over time, those small efforts compound and lead to significant progress.
So, if you’re feeling stuck or unsure where to begin, don’t worry. Here are five practical strategies to help you start improving both your financial and mental well-being.
Five simple strategies to improve your financial health
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Pay cash or don’t buy
If you can’t pay for it in cash, you can’t afford it. Employing this strategy will encourage
you to only spend money you already have, avoiding unnecessary debt and interest payments. Learning to live within your means is a great way to build financial discipline and promote financial security over the long term.
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Employ the 24-hour rule
Every time you want to make a non-essential purchase, wait 24 hours. You’ll be amazed at just how many potential purchases you forget or change your mind about. Impulse buying can swiftly derail a financial plan so cutting it out is a great way to improve financial health.
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Use the Item In, Item Out strategy
Item In, Item Out is a minimalist spending strategy that encourages mindful consumption and helps people avoid clutter – both physical and financial. For every new item you bring in, you commit to removing (preferably giving away/selling) one existing item. Maintaining a more minimalist home can reduce the overwhelm that can result from excess stuff, promote mental clarity and lessen stress.
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Budget according to the 50/30/20 rule
A budget is an essential tool in getting your finances under control. This rule involves allocating 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment. It’s a simple framework that can make budgeting feel more manageable and less restrictive.
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Unsubscribe from unnecessary marketing emails or shopping apps
Every day we are exposed to thousands of adverts from radio, television, billboards, social media and print ads. It’s a lot of noise constantly encouraging us to consume. Much of this is out of our control however we can manage what arrives directly into our inboxes by unsubscribing from marketing emails. Reducing exposure to temptation in this way can prevent impulsive spending and create a more mindful approach to money, supporting both financial and emotional well-being.
Is it time for a comprehensive financial plan?
If you’re serious about getting your finances in order—for your wellbeing as much as your wallet—why not take on our 12 month challenge? It’s the financial training plan you’ve been looking for!
Each month it focuses on a key area of financial planning, guiding you through manageable steps that can lead to long-term transformation. By the end of the year, you’ll gain not just financial stability, but also peace of mind and improved mental health.
Want to fast-track your success? Our expert financial advisers are here to support you with personalised guidance, a tailor-made financial plan and the accountability to help you stay on track.
Let’s work together to make your financial goals a reality and your mental health stronger! Contact us for a free consultation.
A leading provider of expat financial services and wealth management services across Asia.
