Balancing your Mental Health and Finances

According to the Money and Mental Health Policy Institute, 86% of respondents to a Money and Mental Health survey of nearly 5,500 people with experience of mental health problems said that their financial situation had made their mental health problems worse.

Balancing mental health and personal finances can be overwhelming, so this month, we were thrilled to sit down with Russ Jackson, co-founder of Fluid Sports Tech, a startup helping connect collegiate student-athletes to mental health resources, to discuss balancing mental health and managing personal finances.

So What?

If emotions are inseparable from your finances, then you need to work with them.

Give the pod a listen to learn more about how you can work in tandem with your emotions to build financial wellbeing based on your unique preferences.

Knowing how to manage your money based on your unique needs is a no-brainer, and your emotions are a part of that puzzle—whether you like it or not. Let’s start on that right now.

Keep Your Balance In Check

Maintaining your mental well-being while navigating a challenging economic climate can be difficult.

Here are some tips for keeping the balance between your mental health and personal financial management in check:

1. Build a Budget

On the surface, budgeting seems like a personal finance strategy that constrains your ability to indulge in the finer things in life. However, budgeting enables you to break the bank every so often and maintain financial security.

A good budget ensures that your baseline needs are met while providing you with a concrete conceptualization of what is left over for you to save for the future and spend on your “wants.”

Here are some tips for setting up your budget:

• Use the 50/30/20 rule. 50% of your take-home pay should be allocated to your needs (food, shelter, etc.). Then, 30% can be allocated to your wants, and the remaining 20% can help you manage your debt and grow your savings.

• Creating a budget doesn’t need to be complex. A simple spreadsheet or notebook can be enough to get started. 

• Categorize your spending! Organize your transactions into “buckets” to help you simplify your budget. Common categories include: food & dining, transportation, housing, healthcare, entertainment, personal spending money, debt payments, and savings.

• If you’re looking for more information on budgeting, listen to our podcast episode “New Year, New Habits,” where we break down the basics of building a budget!

2. Be Mindful of Your Emotions

In our latest podcast, Ben shared a valuable and timely insight: "Money and emotions are inherently tied up for better or worse. We are humans, and that's just how it goes. Money is central to our lives, and so are our emotions.”

Managing your finances can incite many emotions (some good, some bad). Understanding how your emotions impact your financial management is critical.

• To reduce finance-related stress and anxiety, implement strategies to build stability, such as creating a budget, paying down credit card/debt balances, and tightening spending. 

• That said, it’s also okay to indulge and enjoy the benefits of a healthy financial situation. Use the “pay yourself first” saving strategy to send some money to your savings when your paycheck hits. Then, leave the rest to help you enjoy the finer things in life,, knowing your savings are already taken care of!

3. Use Your Resources!

“I believe that just like physical health, mental health also needs consistent care. And when you ignore the big stressor, like financial stress, you're missing an enormous piece of the puzzle.” - Russ Jackson, co-founder of Fluid Sports Tech.

Leveraging resources to help you manage your personal finances and mental health is as much about being proactive as it is about being reactive.

Here are some insights from our recent conversation with Russ Jackson, the co-founder of Fluid Sports Tech:

• Find time to unplug. Taking a break from technology and indulging in activities like reading, journaling, and exercising can help you proactively manage your mental health.

• Many companies and programs have made fantastic strides in increasing access to mental health resources. If you are having trouble managing your mental well-being alone, reach out to a professional!

• If managing your finances is causing you stress, many resources and strategies are available to help you develop sustainable, healthy financial habits (such as ProsperOn’s Grow Your Balance podcast).  

Managing Your Finances During Economic Uncertainty

Be on the lookout for our next podcast episode!

“Uncertainty is not just an important feature of the monetary policy landscape; it is the defining characteristic of that landscape.” - former Federal Reserve Chairman, Alan Greenspan.

Whether it’s changes in monetary policy, a volatile stock market, or simply wondering why everyday items cost so much these days, economic uncertainty can leave you feeling uneasy about managing your personal finances. In our next podcast episode, we’ll discuss ways to develop healthy and sustainable personal finance habits to help you weather any storm.

The ProsperOn Team

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