Money on the Mind: the connection between finances & mental health

We recently received a heartfelt message from a gentleman who shared how much an article I wrote about the impact of financial stress on mental health had resonated with him. At the time, he was in hospital receiving treatment for mental health challenges and was about to meet with a financial counsellor to discuss his options, including bankruptcy. He thanked us for shedding light on the often-overlooked link between financial strain and mental wellbeing.

As insolvency specialists, we regularly work with individuals who are navigating not only financial but emotional stress, making them vulnerable in more ways than one. We know how the day-to-day pressures of running a business can take a heavy toll on your mental health and overall wellbeing. One colleague shared a particularly poignant story about a business he had to assist, where the sole director tragically took his own life. It was a stark reminder of just how deeply financial distress can impact people’s lives—the grief felt by the director’s family, friends, employees, and colleagues was profound.

The connection between financial hardship and mental health is undeniable. Many of our clients face overwhelming challenges including cash-flow issues, rising costs, creditor demands, and tax debt – and by the time they reach us, they’re often exhausted, stressed, and struggling with anxiety or depression. The strain of financial uncertainty can affect not only mental and physical health but also relationships, creating a ripple effect that impacts all aspects of life.

Being at the forefront of dealing with distressed businesses and individuals, we, alongside other trusted advisers like accountants, are often among the first to notice when someone’s mental health is being severely impacted by their financial troubles. This positions us in a unique role where we can offer both financial and emotional support. That’s why our senior team – partners, principals, and senior managers – are accredited Mental Health First Aiders. This training allows us to support those facing mental health challenges while navigating financial distress, especially during these tough times when insolvency numbers continue to rise.

It’s crucial to remember that insolvency – whether personal or business-related – doesn’t equate to failure. In fact, it can often be the best decision for your future. Clearing debt and hitting the reset button can be incredibly liberating for your mental health, providing a fresh start where you can focus on rebuilding your financial future. Far from being a failure, going through the insolvency process can be a smart, strategic way to regain control of your life and wellbeing.

That’s why it’s so important to challenge two major stigmas: one surrounding mental health and the other surrounding insolvency. Asking for help is not a sign of weakness, and your financial health should never take priority over your physical health, relationships, or overall wellbeing.

If you’re struggling with your finances and feel it’s starting to affect your mental health, don’t hesitate to reach out for help. Finding solutions to your financial challenges can be the key to restoring peace of mind and setting yourself on a more positive path.

Emma Mos
Partner, Jirsch Sutherland