There’s a deep connection that often gets overlooked: the link between mental health and financial success. Maybe you’ve experienced it as well – I know I have! – those days when a clear mind makes financial decisions feel easy, and those times when stress leads to impulse buys or financial avoidance. Just like with health and wellness, mental well-being has become crucial to financial well-being.

The Impact of Mental Health on Financial Decisions

When we’re calm and centered, our choices are clearer and more aligned with our goals. Studies show that mental health influences everything from day-to-day spending to long-term investment choices. Anxiety and stress can lead to avoidance, impulsive spending, or holding back on financial growth opportunities. According to research by the American Psychological Association, financial stress can reduce mental clarity and even lead to behaviors that sabotage financial progress. For us women, who are already juggling multiple responsibilities, prioritizing our mental health can make all the difference in achieving our financial goals.

Risk Tolerance and Financial Confidence

Here’s where mental well-being becomes even more significant: it directly influences our willingness to take financial risks. A resilient mind can handle calculated risks—like investing in the stock market—while mental fatigue can amplify fear and hesitation. Maybe you’ve felt that too?

When mental health is in a good place, we’re better able to assess risks and move forward with confidence. This is especially important for women who might feel unsure about navigating the investing world. Taking care of our minds can unlock the confidence we need to take that first step, like opening a brokerage account.

If you’re curious about starting your own investing journey, my online course walks you through opening a brokerage account—a simple yet powerful first step to building wealth. Click here for courses

Strategies to Manage Stress for Clear Financial Choices

We’ve all experienced the impact of stress on decision-making, whether it’s freezing up or making choices we later regret. But with some intentional strategies, we can reduce that stress and approach finances with a sense of calm and control.

• Mindfulness and Meditation: These practices can improve focus, lower anxiety, and promote clearer thinking. Just a few minutes of meditation can provide a mental “reset,” making big financial choices feel less overwhelming. Maybe downloading an app on your phone is an easy way to get started? Some highly rated ones are Headspace, Calm, Mindfulness, Smiling Mind. Even the Peloton app has meditations on demand (so don’t feel bad if the bike has become a cloth-hanger…you can do the meditation instead!)
• Set Small Financial Goals: Financial planning can seem huge and daunting, especially with daily demands in the mix and the Holiday season coming up. Rather than give up and push that to 2025, start with small, achievable goals, like setting up a savings account (I recently took advantage of my Ally savings account buckets options, which I meant to do for MONTHS!) or taking a short course on investing basics. These small steps build confidence and momentum, and when we accomplish them, it feels empowering rather than overwhelming.
• Join Supportive Communities: Connecting with others on the same financial journey can provide encouragement and reduce stress. Many women find that joining a group coaching program or financial literacy community helps make their goals feel achievable and less isolated.
• Regular Self-Care: Sometimes it’s as simple as going for a walk, taking a break, or engaging in something you love to reduce stress. For me, it’s a nice bubble bath with a candle lit up, listening to a podcast – and kids sound asleep in their bed. By keeping mental health at the forefront, we can approach finances with a positive mindset.

Prioritizing Mental Health for Financial Clarity

When we take steps to prioritize mental well-being, we not only feel better but make better financial choices, too. Mental clarity fuels financial clarity. By taking charge of our mental health, we also take charge of our financial future.

Just as women are reshaping the economy, you can redefine your own wealth by prioritizing your well-being. And, if you’re ready to dive into your investing journey, check out my online course on opening a brokerage account. It’s a powerful first step, backed by a clear mind and a resilient approach.

As you embrace this “mind-money connection,” you’re building not just wealth, but a foundation of mental clarity and resilience that will benefit every aspect of your life.

Sources

1. American Psychological Association. (2020). Stress in America 2020: A National Mental Health Crisis.
2. Benson, M. J., & Wilkinson, J. (2019). Mental Health and Financial Decisions: Examining the Connections.