May is Mental Health Awareness Month and that make this a good time to remind investors that financial and emotional health are deeply intertwined. “Money can’t buy me love”, according to Paul McCartney, and it certainly doesn’t guarantee happiness, but research shows that financial stability and mindful money management play a vital role in supporting mental health.
Financial worries are a leading source of psychological distress. Studies show that people facing financial challenges such high debt or lack of savings are more likely to experience anxiety, depression and even resultant physical health issues.
In fact, according to a MarketWatch survey, 88% of Americans feel some level of financial stress and 65% say finances are their biggest source of stress.
And it’s complicated, because the relationship between money and emotional well-being can be a Catch 22: Financial stress can worsen mental health, and mental health struggles can make managing money harder.
Building financial basics for balance
Taking control of your finances doesn’t require a business degree. Simple steps can make a difference:
- Understand the basics of saving and investing: Learning how to budget, save for emergencies and invest for the future creates a sense of security and reduces anxiety.
- Avoid overspending:. Living within your means helps prevent the stress and shame that often accompany debt.
- Stay engaged, but don’t obsess: It’s healthy to check in on your investments periodically, but watching the markets constantly can fuel anxiety. Conversely, ignoring your finances entirely can lead to bigger problems down the road.
- Get organized: Tracking your spending, setting goals and having a plan for debt avoidance and savings can boost your sense of control and hope for the future.
The health benefits of values-aligned investing
Money doesn’t just need to be about numbers, it can also be about meaning.
Values-aligned investing — aka socially responsible investing or impact investing — where your investments reflect your personal ethics and goals, can foster a sense of purpose and fulfillment. When your money supports causes you care about, whether it’s sustainability, social justice or innovation, you’re likely to add a positive vibe to your financial journey.
“…Investors matter in assuring that there is a tomorrow, and that tomorrow includes a livable planet and lives worth living. Our combined impact will be an important source of engaging finance in creating a better world. Our simple concept, the way you invest matters, will have positive real world results.” Amy Domini, Founder and Chair of Domini Impact Investments and a pioneer in socially responsible investing
The bottom line
Financial well-being isn’t just about wealth, it’s about feeling organized, empowered, and even aligned with your values or interests. By taking small steps to understand your finances, avoiding harmful habits, and investing with intention, you can support both your wallet and your mental health.
This Mental Health Awareness Month, consider how mindful money management can be a foundation for a healthier, happier life.
Read more: Women say their finances are not on as strong a footing as they’d like
