How Mental Health Influences Your Saving Habits and Practical Ways to Overcome Barriers

January 5, 2026

Overcoming mental health challenges that affect saving money is a journey that takes time and patience. Remember, every small step you take counts. You are not alone, and every effort you make is a step toward a better financial future.

Take Emily’s story as an example. She struggled with anxiety and found saving money overwhelming. By starting with just ten dollars a week and using an automated savings app, she slowly built a safety net. Along the way, she sought help from a financial therapist who helped her understand and manage emotional spending. Today, Emily feels more in control and hopeful about her finances.

As the saying goes, “A journey of a thousand miles begins with a single step.” Your first step might be exploring resources like the Mind Money and Mental Health Toolkit or setting up an automatic transfer to your savings account.

Start today. Build your savings, care for your mental health, and create a future where your money works for you.

Money and mind are closely connected. Nearly one in five people with mental health challenges have trouble with debt. Imagine feeling worried every time you check your bank account or avoiding your budget because it causes stress. These feelings are common and show how mental health affects saving money. Knowing this link can help you break free from money worries and build better saving habits.

Understanding the Connection: Mental Health and Financial Behavior

Mental health and money affect each other. When money problems happen, mental health can get worse. When mental health is poor, managing money becomes harder. Anxiety, depression, and stress do more than change your mood. They can make it hard to think clearly, lower your motivation, and cause you to spend without thinking or avoid money tasks.

Research shows that about 18% of people with mental health issues struggle with debt. This makes them more anxious and makes saving money feel out of reach. Money worries cause stress, and stress makes money problems worse. When your mind feels full, making choices about saving or budgeting can seem very hard.

Knowing this connection is important. It is not just about money. It is about how your feelings shape your money choices. When you take care of your mental health and your money, you can take control and save better.

Common Mental Health Barriers to Saving Money

Mental health challenges can make saving money very difficult. Anxiety, for example, can cause people to spend impulsively as a way to feel better quickly. Sarah, who often feels anxious about her finances, sometimes shops online to calm her nerves. While this may provide temporary relief, it makes saving money harder over time. Anxiety can also make people avoid looking at their bank balances or budgeting, which worsens the problem.

Depression is another barrier. It can drain your energy and motivation, making it tough to keep up with bills or track expenses. John, who struggles with depression, sometimes spends money to lift his mood, but this emotional spending often leads to more financial stress and derails his efforts to save.

Stress, especially from financial pressures, can make people focus only on immediate needs. When unexpected bills pile up, Maria feels overwhelmed and prioritizes paying those bills over saving. Saving feels like a luxury she cannot afford, making it difficult to build a financial cushion for the future.

There are also psychological patterns that get in the way of saving. Many people prefer instant gratification, choosing to spend money now rather than save for later. Others feel pressure to keep up with friends or social expectations, leading to overspending. Some live with a scarcity mindset, always feeling like there is never enough money, which fuels anxiety and spending. Procrastination is common too, where people delay saving decisions because they feel overwhelmed.

Understanding these barriers is the first step to overcoming them. With awareness and practical strategies, you can change these patterns and build a healthier relationship with money.

Practical Strategies to Overcome Mental Health Barriers

It is possible to overcome mental health challenges that affect saving money by taking small, practical steps. The first step is to recognize your emotional triggers. Notice when you feel the urge to spend impulsively or avoid financial tasks. Keeping a journal or using mood-tracking apps like Daylio can help you see patterns between your feelings and spending habits. This awareness allows you to pause and choose healthier ways to cope.

Setting achievable savings goals can make saving less overwhelming. Instead of aiming for a large amount all at once, break your goal into smaller, manageable parts. For example, try saving twenty dollars a week. Celebrate each milestone to keep yourself motivated. Tools like Goalsetter can help you set and track these goals visually.

Automating your savings can also reduce stress. By setting up automatic transfers to a savings account, you remove the need to make a decision each time. This helps build savings steadily, even when you feel anxious or tired. Many banks, such as Ally, offer easy automation features to help with this.

Practicing mindfulness and grounding techniques can calm your mind when financial anxiety strikes. Apps like Headspace offer guided breathing exercises and meditation that can reduce stress and prevent emotional spending. Taking a few deep breaths before making a purchase can help you make better decisions.

Seeking professional support is another important strategy. Financial therapy combines mental health support with money management to address emotional barriers. Organizations like the Financial Therapy Association can connect you with professionals who understand these challenges and can guide you.

Finally, building a supportive environment by talking openly about money with trusted friends or family can reduce feelings of shame and isolation. Joining communities such as the personal finance subreddit or local support groups can provide encouragement and practical advice.

Building a Healthy Financial Mindset

Your thoughts and beliefs about money have a big impact on how you save, especially when mental health challenges are involved. Developing a healthy financial mindset can help you make better choices and feel less stressed.

Everyone has a “money script,” which is a set of beliefs about money formed by past experiences. Some of these beliefs might be negative, like thinking “I will never have enough” or “I don’t deserve to save.” The first step to change is to recognize these thoughts.

Try this reflection: Write down the thoughts you often have about money. Are they mostly positive or negative? Think about how these beliefs might affect your saving habits.

Building resilience means learning to recover from setbacks. When you face financial stress, remind yourself that it is temporary and manageable. Focus on what you can control, like making a budget or asking for help, instead of worrying about things you cannot change.

Another reflection: Think about a recent money problem you had. How did you react? What could you do differently next time to stay calm and focused?

Be kind to yourself. Saving money while dealing with mental health is hard, and setbacks happen. Instead of blaming yourself, treat yourself like you would a good friend who is going through a tough time.

Finally, think of budgeting and planning as tools that give you control. A simple and flexible budget can reduce anxiety by making your money more predictable. Make saving a regular part of your budget to help reach your goals.

Tools and Resources to Support Saving with Mental Health Challenges

Managing money while facing mental health challenges can feel overwhelming, but there are tools and resources designed to help you stay on track and reduce financial stress.

One helpful resource is the free toolkit from Mind. It offers tips and exercises to help you manage both your money and mental health. These practical guides can reduce anxiety and improve your budgeting skills.

Budgeting apps like You Need a Budget (YNAB) and Digit make managing money easier. They track your spending, help set savings goals, and automate transfers. These features take some of the mental load off your shoulders and help you keep saving even when times are tough.

Many workplaces offer Employee Assistance Programs (EAPs) that include financial counseling. Financial therapy services, such as those from the Financial Therapy Association, combine mental health support with money planning. They help you address emotional blocks that make saving hard.

Try to set regular times to check your finances using these tools. Pair these check-ins with self-care routines to make money management less stressful. Remember, small and steady steps lead to lasting change.

Recognizing Signs That Mental Health Is Affecting Your Saving Habits

It is important to notice when your mental health might be making it harder to save money. Some signs to watch for include spending money to cope with stress or sadness, which can quickly drain your savings and add to financial worries.

You might also feel guilty or ashamed about your spending or financial situation. These feelings can cause you to avoid looking at your bank statements, budgeting, or paying bills because it feels too overwhelming or stressful.

Mood swings or anxiety when thinking about money are other common signs. You may find it hard to focus on money management tasks like budgeting or planning because your mental health symptoms, such as depression or anxiety, make it difficult to concentrate.

If you find yourself constantly worried about money to the point it affects your daily life and decisions, this is another sign that mental health is impacting your saving habits.

If you recognize these signs in yourself, it might be time to reach out for help from mental health or financial professionals. They can support you in developing healthier habits and coping strategies.

Encouragement and Next Steps

Start today. Build your savings, care for your mental health, and create a future where your money works for you.

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