Let’s take things back to the basics, giving you advice and practical information on how to manage your day to day finances. We can provide help and support with getting your finances in order, so don’t be overwhelmed and stressed, assistance is at hand.
It's probably not news to you that the state of your finances can have an impact on your mental health. According to the Money and Mental Health Policy Institute, around half of adults in the UK who are in problem debt also have some form of mental health issue, while people who are in significant levels of debt are more than twice as likely to develop major depression as those with no debt worries at all. As such, developing a state of financial wellbeing is really important, not only for the health of your finances but for your mental health too.
What is financial wellbeing?
While definitions vary, at its core financial wellbeing is simply having a sense of security over your finances, the feeling that you are in control of your money and have some element of choice over how and where you spend it.
It’s important to recognise that this isn’t simply about the size of your salary. A study by SalaryFinance found that the two income groups that are most likely to have money worries were those with salaries of £10,000-£15,000 but also those earning above £100,000 a year.
In other words, just because you have an above average salary, it doesn’t mean that you necessarily feel in control of your money, nor are you immune to fretting about your financial future.
Why financial wellbeing matters
If you have money concerns, this can have a knock-on effect on all sorts of areas of your life. This may start with sleepless nights but can easily develop into full blown anxiety or panic attacks, or even depression. And as it may be difficult to take your mind off of those financial worries, this can then feed through into becoming distracted at work, as well as taking a toll on your relationships with your family and friends.
People with mental health problems are three and a half times as likely to be in problem debt: we’re here to change that. Money and Mental Health is an independent charity, committed to breaking the link between financial difficulty and mental health problems. We conduct research, develop practical policy solutions and work in partnership with both those providing services and those using them to find what really works.
Watch this video about intimidating language leading to mental trauma:
Losing a friend for any reason is not easy, but when you lose someone you care about to a drug overdose, it can be devastating. Trying to make sense of loss is overwhelming, and if you are using drugs and alcohol as well, the passing of a close friend often triggers a drug and alcohol binge. Using drugs as a coping mechanism for grief can not only have a devastating effect on an individual’s mental health but also on their financial wellbeing.
A recent report produced by the Office for National Statistics (ONS) revealed that there were 3,756 recorded deaths relating to drug poisoning in England and Wales in 2017, a rate of 66.1 deaths per 1 million population, and similar to levels seen in 2016.
Through its Employee Assistance Programme (EAP), which is funded by powerLottery, the Electrical Industries Charity (EIC) provides people within the electrical sector with a wide range of support services to help them overcome any physical, emotional and financial challenges at hand. Additionally, EIC also launched a financial health check that offers people within the electrical sector advice and practical information on how to manage their day to day finances and provides help and support with getting their finances in order before they get out of hand.
Recently, EIC helped Katie, whose employer got in touch with the Charity for support after being concerned about her mental wellbeing. Katie lost her best friend to an overdose after a battle with addiction. She was experiencing significant grief over the traumatic loss and, as a result, she consequently experienced very low moods and engaged in persistent overthinking and worry. This affected her ability to function daily as she became fixated and unable to distract herself, eventually manifesting into a process of catastrophising. This is something that all of us engage with from time to time, and it is described more simply as the process of developing worry until the constructed worry is disproportionate to the actual concern.
Katie has also recently disclosed that she is suffering from cannabis addiction. This type of drug addiction can be difficult to treat as it inhibits motivation and can cause psychosis. There is a growing incidence of its use in the UK, which is causing early onset psychosis - this is the experience of distorted reality, and symptoms manifest in hallucination and delusion. To help Katie cope with feelings of grief and to embark on her journey to recovery, EIC arranged a psychiatric assessment which provided a formal diagnosis, reviewed medication and suggested talking therapies which would support her and enable her to develop coping strategies so that she could manage independently.
She has attended a few suggested sessions with a therapist, however, she felt it was not the right treatment for her. It is important for EIC that people feel comfortable with their therapists and therefore, EIC is continuing providing therapy options for Katie so that she is involved in making decisions over her own care.
Katie is now on her journey to recovery and EIC is there to provide the necessary support while including her in the decision-making process.
Depression and grief affect many areas of life, and this includes your finances. This is why it is essential you get help as soon as you realise there is an issue - whether you find yourself in debt or just unable to cope.
So, if you or someone you know are struggling to cope with the loss of a loved one or having difficulty in overcoming addiction and require support, please contact the EIC support team: This email address is being protected from spambots. You need JavaScript enabled to view it. or 0800 652 1618.
For further information, please contact Jess Vailima: This email address is being protected from spambots. You need JavaScript enabled to view it.
Domestic abuse is still one of the most common and yet unreported crimes in the UK, affecting 1.3 million women every year. Abusive relationships are also one of the leading causes of mental health problems and financial issues.
The Electrical Industries Charity (EIC) understands how important a support network can be to those who have suffered from any form of domestic violence. This is why the Charity launched the Employee Assistance Programme (EAP) and Financial Health Check services, which offer people within the electrical sector emotional, financial and practical support and provide advice and useful information on how to manage their day to day finances as they embark on their road to recovery following a traumatic life event.
One example where EIC was able to show support through the Financial Health Check and EAP is single mum Sabrina who works for an electrical wholesaler. Sabrina reached out to EIC for help after struggling mentally and financially following her relationship with a violent and abusive partner, which has resulted in her taking time off work due to severe stress and depression. More recently, she has also been suffering from unidentified physical illnesses which have necessitated urgent hospital admissions.
The constant changes in her benefits and loss of pay due to prolonged sick days off work meant that debt and not coping financially had become a way of life. To take the financial burden off Sabrina’s shoulders and help her to focus on her mental wellbeing, EIC offered to help with her debts and general bill paying. However, while supporting Sabrina financially, it was discovered that she was spending a lot of her budget on takeaways and cheap but not very nutritious ready meals, and her food shopping was very erratic too.
Sabrina admitted that although she was able to cook, being stressed and always worrying about money meant she was not thinking clearly and had not thought about meal planning for many years. EIC found some great books for cooking healthily on a budget and helped Sabrina to set the meal and food shopping plans including sitting down with the kids the night before a food shop and discussing the upcoming week’s menu as well as creating a shopping list of essential items.
Sabrina has two teenage daughters and, like many teenagers, they can be very fussy about what they eat. Sabrina has been doing everything she can to get them involved and interested in cooking for themselves in the future. Food is a key priority in looking after your mental health and, hopefully, better eating and fewer ready meals and takeaways will help Sabrina and her family in the future.
Domestic abuse affects all areas of life and can be extremely difficult to overcome, but with the right level of support it is possible to turn over a new leaf and start creating a promising future for yourself and your family.
If you or someone you know require assistance, please contact the EIC support team: This email address is being protected from spambots. You need JavaScript enabled to view it. or 0800 652 1618.
For further information, please contact Jess Vailima: This email address is being protected from spambots. You need JavaScript enabled to view it.
Mental health and money problems are often intricately linked. One problem can feed off the other, creating a vicious cycle of growing financial problems and worsening mental health that is hard to escape.
- Across England more than 1.5 million people are experiencing both problem debt and mental health problems. -
People in problem debt are significantly more likely to experience mental health problems
People with mental health problems are also more likely to be in problem debt
How does being in financial difficulty affect your mental health?
How does having a mental health problem affect your finances?
Income
Expenditure
Mental health problems can also make it harder to engage with essential services, such as banks and energy companies. People can struggle to understand bills and remember account details, which can lead to financial difficulties and distress. Four in ten (37%) people who have experienced mental health problems exhibit significant levels of anxiety when dealing with essential services, including symptoms such as a racing heart or trouble breathing.
Communicating with essential service providers can be a particular issue. Three quarters (75%) of people who have experienced mental health problems have serious difficulties engaging with at least one common communication channel, such as using the telephone, face-to-face contact or opening post. Telephone calls are the most commonly problematic. More than half (54%) of people who have experienced mental health problems find the telephone difficult or distressing to engage with. If alternative channels aren’t offered, these difficulties can prevent people from accessing support and addressing problems with their account.
However, firms might find it difficult to identify customers experiencing mental health problems. Many people will not disclose mental health problems to essential services providers, often due to stigma. And a third (36%) of people experiencing a common mental disorder like depression or anxiety have never received a diagnosis and might not even know what they are experiencing is a clinical mental health problem.
Taking control of your cash may sound like a simple idea, but in practice in can be a little more complex. Nonetheless, there are a number of straightforward steps you can take to put yourself in a better position to eliminate those sleepless nights fretting about money.
Start with a budget
It doesn’t matter whether your annual income is £15,000 or £150,000, if you want to feel some sense of control over your money, then you need to have a good idea of exactly how much is coming in, and how much is going out.
Go through your bank and credit card accounts to see how much of your money is going on essential outgoings. From here you can get a good idea of how much disposable money you have to play with each month, as well as how you are currently spending that money.
Get those essentials under control
There is some spending that you simply can’t avoid - everyone needs to pay for their energy, for example. But it’s well worth shopping around to see if you can reduce the amount you have to shell out on those essentials, whether that’s switching your broadband supplier or changing your supermarket so that you spend less on food each month.
Build a safety net
Life can be unpredictable, and if it decides to throw you a curveball, this can knock your finances off course. All it takes is for the car to suddenly pack up, or for the boiler to go, and you can find yourself once again in a panic over how to find the money you need.
That’s why building up a savings safety net is so important. If you have that security behind you, then those sudden expenses are less likely to be quite so damaging to both your state of mind and your finances.
You’ll want to keep that money in an account you can dip into whenever necessary, so an easy access account is a good start. You won’t earn much in the way of interest, but every penny will help.
Forget about your friends
If you’ve ever caught yourself feeling envious at the career prospects and salary of your friends and family, you certainly aren’t alone. Many of us do it. However, from a financial wellbeing perspective, it can be a really unhelpful habit. Your focus needs to be on your own money situation, and whether you are in a position to dictate where you spend some of your money each month, outside of the day-to-day essentials. A larger wage does not necessarily bring with it a greater feeling of financial control, so try to avoid getting too caught up in a salary competition with your loved ones.
Can your employer help?
Stressing about your finances doesn’t just impact your homelife, it can have a knock-on effect on your work too. This could mean having to take time off, or your productivity while at work dropping.
As a result, some employers are looking to find ways they can support their staff to improve their financial wellbeing. These can take all sorts of different forms, from providing basic financial education on pensions and savings, to access to financial advisers and even low-cost loans. So, it’s well worth having a chat with your employer to see what assistance they can provide, or even to highlight specific areas where you think they may be able to help.
Sorting things out can sometimes feel like an overwhelming task. Try taking things one step at a time. These suggestions might help get you started:
1. Understand your behaviour
Your mental health can affect how you manage money in lots of different ways. Recognising those patterns can help you find solutions that work for you.
- Think about when you spend money and why.
- Think about what aspects of money make your mental health worse – is it talking to people, opening envelopes, confrontation or when people get things wrong? Or is it something else?
2. Talk things through with someone you trust
Sharing your worries and talking things through can be a relief. But it isn't always easy. Try and choose a quiet moment when the other person isn't distracted. It can sometimes help to make notes first or even write everything in a letter.
3. Get organised
Choose a regular time to look at your money and bills each week so that things don’t pile up.
4. Get professional advice
It can feel very hard to talk about money problems and ask for help. You may find it hard to do things that make you anxious or tired, for example using the phone, waiting for an appointment or going to an unfamiliar building. If you've had a bad experience with an advisor or a bank in the past, you might feel as if there's no point in trying again. But there are lots of places and people who want to help you. Sometimes getting professional advice can be a real relief.
5. Look after yourself
Money worries can have a big impact on your general wellbeing, which can sometimes make it even harder to take positive steps. It can help to try and notice when your mood and behaviour start to change and think about what you can do to help yourself. This can help you feel more in control and prevent money problems getting worse.
• Get a clear picture of where you stand with your finances
• Receive free and unbiased advice – from building your savings to repaying debt
• Change the way you think about your money today
• Tailor-made advice plans with simple tasks you can start now
• Step-by-step tips to help you along the way
Are you wasting cash on your energy bills? It only takes 20 minutes to check, and it could save you up to £300 a year. You could save even more by being efficient with your gas and electricity usage.
Best ways to save on gas and electricity
Switch: Changing energy supplier is easy and can knock hundreds of pounds off your bills. It doesn’t matter if you rent or own your home, as long as you pay for your own gas and/or electricity, you should be able to switch.
Pay by direct debit: It’s usually cheaper and means you won’t have to worry about missing payments.
Use less: It sounds obvious, but the less energy you use the lower your bills will be. There are plenty of tips and tricks you can use to cut your consumption. We’ve listed some below.
Make your home more eco-friendly: Better insulation, a new boiler, solar panels… There are lots of options out there which could help you save up to £250 per year. Read on to see if you’re eligible for a government grant.
1. We extend this assistance to family members.
2. We are able to provide whole-of-workplace coverage (not restricted to those who have professional affiliations).
The Charity has a more holistic approach to grant giving, to ensure grants are given out with a view to long-term solutions rather than short-term approaches. Increase in demand to our services has largely been driven by mental health issues. Our Financial grant case numbers have reduced, although financial assistance has increased. We focus on intervention (up 55%) and longer-term solutions involving complex case management.
We can offer financial assistance grants ranging from anything between £100 - £250,000 and we do this for a
multitude of reasons, from serious illness supporting people with loss of income when undergoing treatment right through to work around homelessness.
A lot of work that we do is complex in nature. No two cases are ever the same. Most cases will have an element of debt support and so we provide specialist advice into debt consolidation and bankruptcy. We are therefore supporting many people from a training perspective on debt management.
The emotional upheaval of divorce can be difficult to deal with, but so too can the financial implications.
The process, were it to go all the way to a contested final court hearing, can in itself cost more than £30,000, money experts suggest.
On top of that, the settlement may come with its own financial pressures.
Lawyers and charities say that there are ways to keep the cost down, but that irreconcilable couples must also go into a divorce or dissolution of their civil partnership with their eyes open to the potential financial squeeze.
"For anyone embarking on this journey, there's no nice way to put this: it's likely to be a rough road ahead, which takes its toll both emotionally and financially," says Sarah Coles, personal finance analyst at investment platform Hargreaves Lansdown.
"Even with careful planning and a sensible approach, it won't be comfortable."
Research by insurer Aviva suggests 16% of couples who separate also buy a new home, spending an average of £144,600. Money matters take an average of 14.5 months to settle after a split, it adds.
The end of a relationship can be an emotional and traumatic time. You may feel anxious or overwhelmed about such a big change in your life.
Be kind to yourself and ask for support if you need it as there is help available. Start by sorting out the immediate things, like having your own bank account, then work your way up to tackling the longer-term money issues.
• Close off your joint accounts - Consider closing your joint account. Talk to your bank to establish your own account with your own pool of money, and make sure the other joint account holder can't access it. Check that your pay is going into this account
• Do a financial stocktake - List all your assets, and any debts or joint debts in your name.
• Record your turning points - Note down the dates of your separation in a diary or notepad. You can use this when you apply for a divorce as proof that you have been separated for at least 12 months.
• Cancel your redraw facility - Talk to your bank to cancel any redraw facility on your home loan to make sure your debts don't grow.
• Update your rental agreement - If your name is on the lease then you are liable for any unpaid rent or damage caused by your partner.
• Update your utility bills - If your name is on the account then you are liable for any unpaid bill.
• Seek legal advice - Speak to a solicitor about separating property held in joint names, taking legal action, if property is held in your partner's name, to prevent it being sold before the property settlement, and to update your will.
Adjusting to a change in income
Your income and expenses are likely to change when a relationship ends. It's more important than ever to make sure you have a good idea of where your money comes from and where it goes. Here are two important steps to get started.
Getting Advice when you seperate
As well as immediate free legal advice about your assets, you might need ongoing support to help plan ahead, make decisions about your children, housing, or managing your debts.
Smart Tip
You do not lose your right to a share of the house or other property if you leave the house.
Your changed circumstances may also affect payments you are receiving, or could receive, so it will be important to look into these also.
Organising your will, insurance and superannuation
• Your will - Think about updating your will to reflect the changes in your life as being separated or divorced does not cancel an existing will and different rules apply in each state. Read more about wills and estate plans at wills and powers of attorney.
• Review your insurance policies - including car, home and contents, and income and life protection insurance, especially if you have children, to make sure they provide the level of cover you need. Try to shop around for cover that's right for you.
• Your pension - Getting your pension sorted after your relationship ends is an important step in planning for your future.
Information on will-writing, whether you should use a solicitor, what should be included in a will, what to do if there is a change in circumstances – lots of FAQs answered in one place.
read more 10
‘Worryingly, 54% of UK adults haven't got a will, according to Dec 2018 research by Royal London. This guide shows you how you can get will-writing done for free, either by a solicitor in return for a small charity donation, or DIY if it's simple.’
Dealing with a deceased person's property and finances
read more 11
‘After someone dies, the deceased person's 'executor' or 'administrator' must deal with their money and estate. They need to pay the deceased person's taxes and debts and distribute his or her money and property to the people entitled to it.’
read more 12
How to effectively compare home insurance prices/what you actually get, which belongings are included in the insurance, travelling with valuables, special cover for high-value property, accidental damage cover, which add-ons are worth choosing.
More information on finding the right home insurance and what to avoid:
What is excluded from home insurance? How to avoid losing out by paying less and then ending up with insurance which doesn’t actually cover your items.
‘Don’t forget that the cheapest option isn’t always the best deal. It may be a false economy. Some cut-price policies are riddled with exclusions or have lower limits on the amount you can claim under the various different elements of your cover.’
read more 13
read more 14
A good or reasonable credit score is essential for so many things – from renting a new home, to getting a mortgage to buying a car. This link to “10 steps to improving your credit score” is a great way to start and if you want to make it even quicker than reading there’s a short video at the end!!
Credit score truth or myth?
How many times have you heard someone say, “I don’t have any credit cards or loans, so I must have a good score” there are loads of these and now is the time the debunk them!!
read more 15
How mental health affects your finances:
Work absenteeism as a result of mental health problems is a massively underrepresented issue which costs both businesses and employees. In this article, we explore the relationship between mental health problems and your finances.
References