Depression and Money

Depression is a hell of an illness. The lack of joy, the tiredness, the executive dysfunction, the lack of a sense of a future. Making any kind of a decision becomes near impossible, and just as interest compounds, so do the effects of not being able to take action.

I think it’s worth pointing out that there are different types of depression and whilst they might well have similar effects on one’s finances, they also come with their own nuances. 

Situational Depression

Caused by an event or set of circumstances, generally more acute but shorter lasting - might bring with it specific effects based on what the event is.

For example, having a baby might be the cause of post-natal depression but is also one of the times in a person’s life where they might be feeling financially vulnerable anyway. A situational depression based on grief might also bring with it family arguments over inheritance, needing to take time off work, guilt, shame or stress about inherited property and how you should deal with it. 

Chronic Depression

This is longer term, generally lower grade and with no specific trigger - is more likely to risk those compounding effects of the realities of living with depression.

If it becomes too difficult to work or study, if personal hygiene affects work or relationships, if personal relationships fall to the wayside, if you spend too much on trying to find joy, or spend nothing but let the money pile up in a current account - all of these will create deep financial grooves which can be difficult to get out of. 

Managing Your Resources With Depression

Managing money when you are depressed is genuinely harder - it’s not a moral failing. Survival spending on things like takeaways or pre-prepared food when you can’t cook and taxis when you can’t face the bus are, sometimes, absolutely the right call. Spending on therapy is also worthwhile if it’s something that you can afford and want to pursue - it’s an investment in you which you deserve. 

It is worth pointing out that a lot of the processes for treating depression take time and money afforded by having resources and those aren’t necessarily available to everybody. Access to mental health support is, in this way, a class issue, a gender issue, a race issue and a disability issue.

The Money and Mental Health Policy Institute found that people with depression and problem debt are 4.2 times more likely to still have depression 18 months later than people without financial difficulty. I would suggest that financial stress plays a huge role in that, but not having access to the time, space and resources to heal because of the debt must also come into it. 

For me this is another reason why financial stability and abundance is so important. It’s not all about retirement, or about nice houses, cars or investments going up and up but about being able to give ourselves the breathing space that we, as humans, might need. 

So where does that leave us, practically speaking? 

Some Practical Money Adaptations if You’re Depressed

1). Automation, automation, automation. 

And I mean this in terms of setting up direct debits, standing orders and auto-investing - sort it on a good day or in a good moment and then let it happen. 

But I also mean in terms of general decision making you do yourself. Make a decision that say, 5% of your income goes towards a therapy fund and that decision is made. You don’t have to wonder or think then. You might have to do some of the practical moving money around but you don’t have to wrestle with the inner thoughts that you’re not worthy of therapy, it’s not working, somebody else would be better off with my slot - the decision has been made, you just have to abide by it. 

2). Spend on joy. 

Thoughtfully of course.

Research consistently suggests that spending on experiences tend to bring more lasting joy than material things so that’s worth thinking about when making your choices. 

I think you can also trust your intuition on what ‘should’ create joy even if you can’t feel it right now. You know a takeaway for the 6th time this week probably isn’t it, you know an ice cream with a friend probably is. You know a book that sits on your unread pile probably isn’t, you know that comfortable earphones so you can listen to audiobooks whilst out on your silly mental health walks probably is.

This will be different for different people of course, but it’s similar to the case of looking after yourself like you are somebody that your loved ones care about - you know what ‘right’ is for you, even if you have to think about it like you’re looking after a pet.

3). Lean into financial confidence building. 

Doing good stuff with your finances can actually sate some of those thought spirals. Creating an emergency fund, learning about investing, getting a debt plan going - all of these can be proof that you are capable and worthy, as well as setting you up for the best life that you deserve. 

Having any area of life which feels manageable can make a difference and as nuanced and wide as finance is - personal finance is really a set of simple gears. Little steps which add up to a bigger picture and which compound over time to create something special. Visible wins like watching a savings pot increase can be an incredible motivator. 

Prioritise Properly

Of course I believe that sorting out your money is important, one of the most important things that you can do on so many levels but if your depression is severe then worrying about a budget is not it. Do the bare minimum, put your energy into getting the support that you need, and in time finances can be a part of the bigger picture. 

If any of this has resonated, I'd love you to know that financial coaching is not the sharp-elbowed, spreadsheet-wielding experience you might be imagining. With me, it's a conversation. It starts where you are - not where you think you should be - and it goes at your pace.

Clients come to me not because they're ready, but because something shifted just enough to make reaching out feel possible. That's enough really - that's actually plenty.

If that's you, I'd love to have a chat. No pressure, or judgment, just a bit of time and space to think about what your money could look like and what that might make possible for your life.

Book a free call here.

Love Eleanor. xxx