City thinking, local knowledge

Getting on Top of Your Finances is Good for Your Mental Health

By Questa Chartered

There are many compelling reasons why you should speak to a financial planner, such as to make sure you’re prepared for the future, able to achieve your lifestyle goals and spending in a way that doesn’t jeopardise your overall financial situation.

But there is another important reason to get on top of your finances and seek advice – to protect your mental health.

It’s so easy to get weighed down by money worries, but by getting on top of your finances and taking control, you’ll be better placed to take the load from your mind and feel re-energised.

If you have a financial plan in place, put together with the help of a specialist in this field, you can move forward with less stress, greater peace of mind, and with confidence that you’re taking all the right steps to achieve the lifestyle and financial freedom you want.

Cost of living crisis affecting mental health

That certainty and confidence can be invaluable at any time, but especially now, when inflation is at a 40-year high and tipped to exceed ten per cent in the near future.

According to research by the Money and Mental Health Policy Institute, 59 per cent of adults in the UK believe the cost of living crisis has negatively impacted on their mental health. For example, some of those polled said they often felt anxious because of money worries, while others said they felt depressed or hopeless.

And this is having serious consequences, with more than one in five respondents saying they don’t feel able to cope in this climate of soaring prices. As a result, many are avoiding confronting the reality of their financial situation and feeling a sense of dread as soon as letters from the bank and their energy provider drop on the doormat.

This behaviour can potentially create a vicious circle where people get sucked into a vortex of debt from which they can’t escape. As a separate poll by the Money and Mental Health Policy Institute found, people with mental health problems are three-and-a-half times more likely to be in problem debt than those without.

Why financial advice is so important

As financial planners, our mission is to help our clients achieve their financial and lifestyle goals, and we can make that possible for you through good management of your money.

A specialist can help you get to grips with daunting issues such as whether you will have enough money in retirement and if your investment risk is adequately spread. Reassuringly, a specialist can also be a steady, objective voice if you’re panicking over falling share values.

At the same time, a financial planner can help change your relationship with money for the better. For example, they may encourage you to set a household budget, so you know exactly how much is going towards essentials, discretionary purchases and luxuries, and how much you can afford to save to achieve your long-term goals.

Ultimately, many people’s money worries come down to the fact that they don’t want to engage with their finances and knowingly look the other way, so there’s a massive question mark hanging over their heads every day.

But with professional financial advice, you can get clarity and certainty, which in turn means many of your daily stresses and worries are removed and you can move forward feeling confident about the days ahead.

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