5 Tips for Saving Money While Supporting Your Mental Health
November 21, 2023
Financial well-being is closely linked to mental health. When we feel stressed or anxious about money, it can absolutely take a toll on our overall wellness. Establishing money-saving habits can provide peace of mind and create a positive impact on your mental well-being. Here are five tips to help you save money every month while also supporting your mental health:
1. Understand Your Spending Habits:
- Track Your Pennies: Before you can save, you need to know where your money is going. Use a spreadsheet or money tracking apps to help categorise and understand your expenses. Knowing where you tend to spend or overspend can help you identify areas to cut back.
- Reflect Before You Buy: Impulse buying can give a quick rush of pleasure and dopamine release, but that feeling is often temporary. Instead, when you see something you want, wait 24-48 hours before making the purchase. This can prevent unnecessary spending and reduce buyer’s remorse.
2. Create a Realistic Budget:
- Prioritize Essential Expenses: Focus on essential necessities such as rent, utilities, food shopping, and any debt payments. Once these are covered, allocate funds for non-essential items and savings.
- Adjust As Needed: Life can be unpredictable. If you find that a certain budgeted amount isn't working, adjust it. It's crucial to have a flexible mindset.
3. Automate Savings:
- Set It and Forget It: Many banks allow automatic transfers to savings accounts. By doing this as soon as you get paid, you treat savings as a non-negotiable expense.
- Take Advantage of Employer Benefits: Speak with your Manager and HR team to check is there are any extra benefits available to you that will offer support now or for your future (e.g. healthcare or pension contributions)
4. Shop Smart:
- Compare Prices: Before making any major purchases, shop around. You can even shop around for your weekly groceries. Make sure you visit price comparison websites and apps, as they can really help you find the best deal available at any given time.
- Use Cashback and Rewards: Credit cards, apps, and loyalty programs can provide cashback and other rewards. Just make sure you're not overspending just to earn rewards; they should be a bonus for what you already need to spend.
5. Remember Self-Care and Mental Health:
- Treat Yourself: It's essential to make sure you include some budget for entertainment and self-care. If you deny yourself permanently and consistently, it can lead to feelings of deprivation and lead to eventual overspending.
- Seek Support: If you are feeling overwhelmed by financial stress, it’s always helpful to seek support. This could be in the form of a financial advisor or a mental health professional. Asking for help, shows great strength and means a plan can be put in place to help lighten the load.
While balancing financial commitments with mental well-being can be a challenge, with a few strategic changes and by being proactive, you can slowly build habits that supports both.
Personal finance is just that — personal. What works for one person might not work for another. The key is finding the strategies that resonate with you and make them a regular part of your life.