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Mental Health & Money: How to Get Out of the Vicious Circle

by Jessica Amey

Facing money issues is challenging and stressful. The situation can be even more stressful to deal with when you have loans to repay and not enough income to cover them. It won’t be long before the stress gets to you and you become trapped in a negative cycle. This vicious circle is even worse for people with mental health conditions.

When you are facing mental health difficulties, stress is one of the things from which you want to steer clear. The stress of managing your personal finances will make your metal health issue worse; when you are in a worse state, it is more difficult to deal with financial issues. You can get out of this cycle with the help of tips and tricks we are about to discuss in this article.

Get a Clearer Picture
The first thing you need to do to get a better hold of things is understanding the situation more clearly. Take a step back from your everyday routines and start breaking down your personal finances to the last detail. You want to write down every expense you need to cover and the amount of income you make. You can also find some personal finance apps to use here.
This breakdown is a great starting point. Don’t worry about the financial state you are in; at this point, the main goal is to understand the situation and know where you are at. With your income and expenses broken down, you can continue with the next step.

Setting priorities is the next important thing to do. There are bills that you can’t live without; these bills must be at the top of your priority list. You don’t want your energy bills and regular expenses to be causes of stress as you try to survive the month.

Next, look at the less important expenses. If you don’t have enough money to cover them all, now is the perfect time to eliminate non-essential expenses without reducing neglecting your basic needs.

Set up a special savings account to help you manage your money better. Save money to cover your monthly expenses and bills. The amount you do not spend on unnecessary expenses should go into this savings account as well.

Get Help
There are a lot of financial benefits designed to help people living with anxiety and other common mental health conditions. You can, for instance, claim ESA allowance for depression and use the money to help cover medical expenses and extra monthly bills.

There are also programs designed to support workers with mental disabilities. Employment and support allowance rates vary, but if you qualify, it will boost your income and help you cover your expenses.

Don’t forget to get help for your mental health issues too. Just because you are struggling to manage your personal finances, doesn’t mean you don’t need to deal with your mental health problems. Seek proper medical support and get the help you need to alleviate your issues.

Develop a Budget
A monthly budget is an effective tool for keeping your personal finance organised. Now that you have expanded your income and gotten the help you need, it is time to make good use of the resources available such as this guide by Mental Health and Money Advice to you and make some changes. Creating a budget is a great way to finally get out of the vicious circle.

With a monthly budget in hand, you have what it takes to control your expenses better. There is no need to worry about spending too much on unnecessary things. You can simply refer to your monthly budget to see if you can afford to spend the money.

On the other hand, a budget also lets you keep track of your progress. Using a personal finance app on your phone, you can set a budget for every expense category and then input the expenses you make to track your progress.

Stay Meticulous

Speaking of using an app to track your expenses, knowledge is a great way to alleviate stress and keep your personal finances in order. Don’t worry too much about going over budget or having to deal with emergency expenses. All you need to do is stay meticulous and keep track of every expense you make at this point.

The rest will fall into place without a problem. When you need to save extra money for additional expenses, for instance, you know what you can cut and the expenses you can live without for a short period of time. As mentioned before, knowing helps you get a better grip of the situation at all times.

Living with anxiety and other mental health issues is stressful, but you can’t ignore your financial health. With the tips we covered in this article, you can get out of the vicious circle and regain control of your personal finances.

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