Money management might not be the most exciting pastime, and in times of economic crisis it can be especially challenging, but in the long run it can help reduce stress and improve mental health

No matter where you live or how you earn an income, the way in which you look after financial affairs can heavily impact your quality of life and mental wellbeing. According to a 2019 study conducted by UK-based company Salary Finance, 40 per cent of workers regularly worry about money matters and nearly half of those people say it has caused them to become depressed.

Nottingham-based life coach Barbara Bates guides professionals in high-pressure situations and suggests that the main cause of anxiety, depression and a sense of powerlessness when under financial stress is the apparent lack of control.

‘There are many things in life that [actually] can’t be controlled, for example, extreme weather. The key thing to realise here is that you do have a choice in how you handle your finances.’

A common assumption, for example, is that those who appear fiscally savvy or stable are only this way because they earn a large salary, but this isn’t necessarily the case. Good money management depends on how you look after, save and invest your cash. Whether your income allows you to live month to month or look beyond the short term, learning how to separate your finances into current supplies and future reserves can make a difference on how prepared you are for when the unexpected happens. Without planning or back-up savings, for example, a drop in income or a period of unemployment can lead to worries that there won’t be enough money for necessities, which can affect mental wellbeing.