Money is a stressful topic for anyone to talk about. Now factor in anxiety and depression, and that stress is amplified by 110%. It can be easy for someone with anxiety or depression to think I'll never have money or I'm not deserving of money. I know because I was there. But I also know that money and mental health doesn't have to be a stressor on your life.
At my lowest, I squatted in an apartment building managed by my father-in-law.
We had worked out an arrangement. As long as I took out the trash and did minor maintenance work for the thirty-unit building, my family could stay for free. Even though I was highly grateful for my father-in-law's generosity, it was not a good place to be.
I had to borrow money from my family to pay the bills. We had a car donated to us, so I could get to work. I RODE A BIKE TO WORK when I didn't have a car. Money and mental health were such a stressor in my life that I developed candidiasis and was in the hospital. Another expense that I couldn't afford. Something had to change.
Money and Mental Health
Unfortunately, the experience of struggling with money is not uncommon. Obstacles surrounding money are often the basis of many arguments in relationships. But even for someone living alone, trying to pay the bills can be challenging.
In 2022, the American Psychological Association released a Stress in America survey report. The report showed that stress about money is at its highest recorded point since 2015, with 81% of people ages 26 to 43 saying money is a significant source of stress.
When you combine mental health-related issues and finances, the consequences can be devastating. Again, I know this from personal experience. However, research proves it too. The Money and Mental Health Policy Institute in the U.K showed:
"Many people with mental health problems report that their spending patterns and ability to make financial decisions change significantly during poor mental health periods. Recent national polling of people with mental health problems found that, while unwell, six in ten (63%) people found it harder to make financial decisions, 42% put off paying bills, and 38% took out a loan that they would not otherwise have taken out."
So what can be done?
Start an Emergency Fund
The average "emergency" in the U.S costs around $1,000. Think car repairs, minor medical, etc. At the same time, many Americans are living paycheck to paycheck. For many families, having to shell out a grand is not possible. Imagine not having that stress looming over you!
You can save an emergency fund of $1,000, and it's easier than you think. Even if it takes you a year, you can do it, and you should do it! The important thing is to start.
To have an emergency fund of $1,000 by next year, you would only need to put aside $84 per month or $3 a day. If you find it challenging, consider canceling a subscription service or cutting out dining out for a bit. It's worth it!
After you have an emergency fund, you can start chipping away at debts. Having an emergency fund is a critical first step to peace of mind.
Tips to Save Money Faster
Once you have your emergency fund, you'll want your money to work for you.
Most banks that offer checking and savings accounts don't provide high APYs. In fact, most banks offer 0% for checking and, if you're lucky, .01% on savings. These rates will not allow your money to work for you.
High-interest checking and savings accounts are readily available. One of my favorites is Capital One, which offers accounts with APYs of .10% and .70% for checking and savings. Plus, there's no minimum to open an account!
Here are some other options to check out from Forbes.com.
Ways to Make Extra Money!
With the power of the internet, the ability to make extra cash to fund your emergency fund or continue building savings has never been more effortless.
If you have access to a car, apps like Uber and Roadie make it easy to deliver food and packages. What's great about these services is that you create your own schedule!
Even Facebook Marketplace is a tool. Recently, my wife has been selling items that we no longer need around the house. Do you have old electronics lying around? Sell them on BackMarket. Everything sold equals fast cash!
Cut Expenses While Saving
Take a look at your most significant monthly bills outside of rent or mortgage. Those bills are service or subscription-based utilities like internet, insurance, and mobile.
Shopping around for these services is one of the fastest ways to cut expenses and save more money.
Save on Cell Phone:
Mint Mobile
Xfinity Mobile
Save on Car Insurance:
Check out this great article from NerdWallet!
It's a recipe for success when you cut your expenses while saving money! You will eleviate stress and your mental health will thank you!
Foundation for Peace of Mind
To help avoid additional stressors in your life, get that emergency fund going today! If you can't start with $100 or more, begin by opening a Capital One 360 checking account to earn a higher APY. Once fully funded, you can continue adding your $84 per month or $3 a day. It will add up!
- You won't even miss it if you can set up a direct deposit for your $84 per month. Your emergency fund becomes automated. There will be times when you need to tap into that money, so having an automated/direct deposit going into your emergency fund is a smart move.
- While saving money, look for ways to cut expenses by saving on your phone, internet, and insurance!
- The more you practice and incorporate cutting and saving, the better off you'll be when an emergency appears!