At Beacon, we’re committed to helping our members feel confident when taking control of their finances, and have looked into the research to bring practical advice that you can use to improve your financial and mental wellbeing.

We know many of our members experience money worries which can really impact your day-to-day life. YouGov ran a poll in 2022 that showed 1 in 4 workers find worrying about money impacts their performance at work, so it may be more common than you realise. But there are simple steps you can take to ease the pressure and improve your long-term financial as well as mental wellbeing.

In this blog, we’ll share these tips as well as who you can reach out to if you need help. Remember, we’re here to support you whenever you need – if you’re worried, please get in touch with us.

A Common Link

According to Money and Mental Health, people struggling with their long-term finances are 5.5 times more likely to experience mental health challenges. Equally, those who already have difficulties with their mental health were 9.3 times more likely to struggle with managing their finances in 2019-2022.

In recent years in particular, with the fall-out from Covid-19 and the ongoing cost-of-living crisis, feelings of anxiety around money is a common experience for households across the UK.

Financial difficulties can be both a symptom and a cause of poor mental health, so getting on top of them can help to improve your overall wellbeing. But if you’re in the middle of a crisis, it can be hard to know where to start, or how you got into this situation in the first place.

A Vicious Cycle

When times are tight it can weigh us down, making us feel anxious or depressed. Trying to manage our finances during times of poor mental health can be a real challenge. The worry can make day to day life unbearable.

We have all experienced, at one time or another, acting on impulse when we’re feeling low or lacking in motivation. Grabbing a chocolate bar rather than going for a run. Watching another episode rather than cleaning the house. For some people, the worry creates an impulse that can lead to overspending or gambling, which causes a temporary high that makes us feel good. But this can then lead to debt, which puts additional pressure on your income – yet excessive worrying can impact your ability to work to pay off those debts.

This cycle of short-term gratification leading to long-term financial stresses can become overwhelming, but there is a lot of support to help you regain control.

We also know that sometimes things just tip over the edge, like an unexpected bill when things are already tight. It can be very draining if you feel you’re planning everything, but still can’t seem to make ends meet. If you’re tired and stressed, looking at your finances carefully can feel like too much to handle.

Steps to Take Back Control

Understanding where your current finances are can help to provide perspective about the situation. Creating a simple budget that identifies your regular outgoings against your income can help you predict when things may be tight, or where there are opportunities to save. It also helps to feel accountable for what you are spending, and why, so you’re making decisions based on rational facts rather than emotions.

If you are worrying about money, one of the first things you can do is to talk to someone. Family or friends can be reassuring, as everyone will have experienced some degree of financial worry before. Organisations such as Mind or Money and Mental Health can offer further, expert help if you think things are getting too out of hand.

Everyday life will always have its ups and downs, but if you find that you are being impacted by the lows more than you think you should, then taking a step back by practising meditation or a physical activity like yoga can help to break the cycle of worry and bring back a sense of focus. If you find yourself getting flustered when looking at your finances, stepping away to make a cup of tea or go for a walk can clear the air, so when you come back to them your mind is refreshed rather than fuelling any sense of panic.

There are a whole range of free tools to help you manage your finances as well as your mental health, so you can feel on top of things again:

• StepChange is a charity dedicated to assisting individuals out of debt.

• ACAS provides guidance around mental health at work, including your legal rights.

• The Money Saving Expert provides brilliant, jargon-free explanations of a range of financial products, so you can feel informed and not baffled, including what to do if you find yourself struggling to pay household bills.

• The Women’s Organisation run a Mind & Money programme in response to the cost-of-living crisis, offering help with income management, building confidence, and other practical tips around managing household utilities.

• The NHS’ Every Mind Matters service have a mindful breathing video that you can follow along, as well as a beginner’s guide to meditation.

Of course, you can also always reach out to us. We’re here to help our members every step of the way, and will listen if you have any worries or a situation, you’re not sure how to fix.

There’s Hope Out There

Mind, the mental health charity, work with people from all walks of life who find themselves in difficulties. They shared the story of David, who engaged with StepChange after getting into debt over several years. Through their impartial, non-judgemental advice, David set up a Debt Management Plan as the first step to regain his sense of control and move towards a more positive financial future.

It is possible to turn difficult financial situations around, and you don’t have to do it alone. There are many more services and providers than those listed above, who can give advice and a helping hand when it comes to both managing your money and your mental health.

Conclusion

Whilst managing finances is an inevitable part of everyday life and can be a big source of worry and stress, it is not a given that they will end in a downward spiral.