Money problems can leave you feeling isolated, and burdened by guilt, shame and embarrassment. These emotions can take a toll on your mental health, making it hard to be open about your financial concerns.  

Nobody wants to feel vulnerable or judged because of their money troubles. The cost-of-living crisis has left one in five (20%) working Scots dealing with money-related sleep disturbances and worries.  

There is a clear connection between financial difficulties and mental wellbeing. Not being able to keep up with your friends due to low self-esteem and a tight budget can make you feel left out. When you cannot afford the essentials or enjoy some leisure time, it can also make you feel lonely.

Events like the pandemic and cost-of-living crisis, have made money worries even more overwhelming. With inflation at an all-time high, money concerns might be on your mind more than ever, particularly during Christmas. But there are several reasons behind financial anxiety. Figuring out what is causing it can make it easier to get help. 

Myths about money worries and mental health

The connection between money worries and mental health

Money worries affect us in various ways, impacting a person’s thoughts, emotions, behaviours and overall wellbeing. Those could include:

Stress and anxiety 

One of the most common manifestations are anxiety and stress, stemming from a persistent concern about not having enough money to cover bills, debt repayments or daily expenses. This constant worry can lead to feeling overwhelmed, especially when faced with the uncertainty of financial circumstances in the future. 

Depression and low mood 

Ongoing financial struggles can lead to depression, causing persistent sadness, hopelessness or helplessness. These emotions can, in turn, disrupt sleep patterns, appetite and energy levels, further contributing to despair. 

Social isolation  

People may withdraw from social interactions or avoid events due to concerns about affordability. Financial struggles may lead to feelings of embarrassment or judgment, fostering a sense of isolation from their social circles.

Relationship strain 

Financial difficulties can strain relationships, creating conflict and tension. Disagreements over financial decisions and the burdens of financial obligations can escalate, causing increased stress within relationships.

Substance use or excessive spending 

Substance use provides temporary relief and an escape from financial anxieties, but it can lead to addiction and worsen mental and physical health. Excessive spending, on the other hand, offers momentary pleasure and a sense of control but often results in increased debt, hindering financial recovery. 

Sleep disturbances 

Financial worries often disrupt sleep patterns, causing insomnia or fragmented sleep due to anxiety about financial problems and future financial stability. Racing thoughts about money worries can prevent a restful night’s sleep, contributing to overall fatigue and mental strain. 

Borderline personality disorder (BPD) and schizophrenia  

Borderline personality disorder (BPD) and schizophrenia can also make handling money more challenging. The emotional difficulties associated with BPD and schizophrenia can lead to impulsive spending and other financial issues. Some triggers could include losing your job, dealing with debt or overspending.