It is not uncommon for people to have difficulty managing their money. However, financial management can be even more challenging for people with mental health problems. It gets even worse when medical bills consume a major portion of their monthly income. If you are in such a situation right now, we have put together a few tips on managing money and mental health.
Let’s break it down.
Tip#1: Have a Spending plan
Sometimes you find yourself running out of money. To make up for it, you borrow it from others, which increases your debt. It is about time you reviewed your finances, for which you need a spending plan like the one discussed below.
Beware of Your Income
Whether you are a government employee, work for a private firm, or run your own business, you must know your income. You must know what amount you will get and by what time.
Know Your Expenses
To do this, you should look at the previous months and note down all the expenses you paid for. While some of these expenses will have a fixed cost, they may vary for others. Common variable costs include gas, groceries, parking fees, healthcare, and home maintenance.
Once you are done sorting out your income and expenses, it will be easier to make a spending plan. However, it’s pertinent you stick to the plan once you’ve made it. Sometimes, impulse buying makes us exceed our budget. Your job is to be more responsible with the plan you have just created and create hard spending boundaries for yourself.
Tip#2: Seek Help
If you are having a hard time sticking to your schedule, it is about time you ask a trusted friend or loved one to assist you. There is even professional help available for those who have detrimental money management issues.
Seek Informal Mentoring
Share your spending plan with another person and meet them regularly. Let them help you review your finances and see whether or not you have been spending according to your budget.
Seek Mentoring or Assisting Programs
Another option is to find financial assistance programs. If you are already a part of a financial institution, advisors may help you out.
Seek Power of Attorney
If you find it hard to handle your finances because of your mental health problems, it is better to assign the task to a friend or a loved one via power of attorney. Power of Attorney is a notarized legal document that allows others to handle your finances on your behalf. Some of these actions may include using your debit card or checkbook to withdraw cash and pay off your debt.
Work With a Representative Payees
You can get a representative payee if you fail to manage money because of mental health problems. A representative payee is an individual who receives and spends a check on your behalf. They also make regular reports to the Social Security Administration.
Tip#3: Create a Saving Plan
If you are beginning to regain control of your financial situation by now, it is better to create a savings plan. Here is what you need to do.
Start Slow
Let’s suppose you need a new amp for your guitar, which costs $200. Instead of shelling out $200 upfront, take your time. Save $20 each month for ten months straight. It will require patience on your end, but spending $20 every month is better than spending $200 altogether.
Open a Savings Account
If you have a current account to manage your expenses, don’t expect it to preserve your savings. Instead, open a different savings account. Add a small amount of money to it each month. $20 a month isn’t such a hefty amount, but you will have $480 to your name after two years.
Capitalize on Unexpected Inflows
Let’s suppose you have landed a significant tax return or inheritance. It is tempting to spend it all. However, saving it is better in the long run, and it will help you move closer to your goal.
The Final Word
As life gets busier and tougher for people, mental health issues arise. These issues lead to financial stress, making it impossible for us to manage finances the way we want. Many people experience the same stress you might be experiencing right now. The good news is that addressing your mental health concerns and getting help at the right time will allow you to manage other aspects of your life, including your finances. Use the tips on managing money and mental health we’ve mentioned above and visit our website for more advice on how you can improve your financial health.