October is Mental Health Awareness Month, with World Mental Health Day on 10 October. While much of the conversation around money and mental health focuses on financial stress, there’s another, more positive aspect: being in control of your finances can reduce anxiety and foster greater clarity and optimism.
Having more money certainly makes some financial challenges easier to manage, but being organised is not reserved for people with high incomes and few debts. It’s about understanding your financial position, having a plan, and putting systems in place.
“When you know what needs to be paid, what you have available, and the goals you’re working towards, you expend less mental energy on keeping track of your money matters,” says Sarah Nicholson, head of customer experience at JustMoney.
Nicholson suggests the following ways to simplify your financial life and manage money stress:
- Set financial and lifestyle goals. Consider what you really want from life. Is it buying a home, spending more time with family, travelling, changing careers, or retiring comfortably? Clear goals give your life purpose and make it easier to decide what to save for, where to spend, and where to cut back.
- Allocate income. Divide your money into separate accounts or savings pockets for different purposes. This makes it easier to see what’s available for specific needs, so you don’t have to think twice about every purchase.
- Review expenses. Check subscriptions, memberships, and insurance. Cancel services you no longer use, and request updated quotes for services you still require.
- List debts. Review outstanding amounts and interest rates. Prioritise high-interest debt while continuing to meet at least the minimum payments on the remainder.
- Give yourself a guilt-free spending allowance. Being financially responsible doesn’t mean eliminating everything enjoyable. Set aside a realistic amount for hobbies and entertainment – activities that can also support your mental health.
- Automate regular payments. Set up scheduled transfers for recurring bills, and check your debit orders periodically to ensure the amounts are correct. Set up a transfer to savings on payday so building a reserve becomes routine.
- Set up transaction alerts. Notifications on your banking app will help you stay informed without needing to constantly check your accounts.
- Build a financial “what if?” plan. Consider a few scenarios: What if my skills become redundant? What if I need to help a family member? You don’t need to prepare for every possibility; simply having a plan reduces uncertainty.
- Establish a regular money check-in. Choose one day a month to tackle financial admin and filing.
- Safely store important documents. Whether you store records online or in paper form, ensure you and your family can easily access them in an emergency. Consider insurance policies, investment records, wills, and beneficiary details.
- Know when to get help. Sometimes the most financially responsible, stress-reducing decision is admitting that you can’t figure everything out by yourself. A financial adviser, debt counsellor, or tax consultant can help you turn a complicated situation into a manageable plan.
“Financial wellbeing isn’t about having everything sorted immediately,” says Nicholson. “Aiming for perfection can be exhausting. You don’t need to optimise every rand, just set up a system that’s simple enough to maintain.
“There’s great value in making progress. Paying bills on time, sticking to a spending plan, reducing debt and saving take some effort, but the greater sense of control is well worth it.”
JustMoney is a South African financial services company providing a range of solutions, from loans to insurance, underpinned by the data and coaching individuals need to make good money choices.
JustMoney believes that money is personal, so its support is too. Customers are more than just a number; they are individuals with unique goals and dreams. From securing a loan or protecting what matters, to finally getting a handle on debt, JustMoney provides a personalised experience powered by insights that fit customers’ lives.