As South Africans grapple with rising costs, small, deliberate steps toward financial control can ease stress around finances and strengthen emotional resilience.
As Mental Health Awareness Month approaches, conversations around well-being often centre on relationships, work pressures and physical health. Yet one of the most persistent, and frequently overlooked, contributors to poor mental health is financial stress.
Overall, mental health is influenced by many factors; regular physical exercise, good sleep, a healthy diet, and meaningful relationships all play an essential role in building emotional resilience. But among these, sound financial management stands out as one of the few areas where small, deliberate actions can quickly make a meaningful difference. Feeling more in control of your finances can have an immediate and measurable impact on how you feel day to day.
Across the globe, studies consistently link poor financial habits to increased levels of anxiety and depression. Unmanageable debt, missed payments, and a lack of savings can leave people feeling overwhelmed and powerless. Conversely, consistent behaviours like paying bills on time, tracking expenses, and saving regularly are associated with greater emotional resilience and improved mental well-being.
A 2025 Australian study published in Stress & Health analysed two decades of household data and found that people who regularly saved or consistently paid their credit card balances on time reported measurably better mental health. The researchers concluded that the link was causal, that disciplined financial behaviours directly improve well-being, not simply the other way around.
Financial stress hits harder in South Africa
Closer to home, financial pressure is mounting. High interest rates, spiralling living costs and persistently high household debt levels mean that many South African families are living on the edge. It’s no surprise that money worries are among the most common causes of sleep disruption and chronic stress.
But the good news is that even modest behavioural shifts can make a real difference, both to your financial outlook and your mental state.
Five steps to ease financial anxiety:
- Get real with your budget
Start by understanding exactly where your money goes each month. Track both fixed expenses and discretionary spending, including takeaways, streaming subscriptions and weekend getaways. Seeing the full picture often alleviates some of the mental strain and helps identify small, manageable changes. - Build an emergency buffer
Aim to accumulate at least three months’ worth of expenses in a low-risk, interest-bearing savings account. Even small, automated contributions, no matter how modest, can provide a sense of control and resilience. Set up a debit order to make this savings habit automatic and frictionless. - Tackle debt systematically
Prioritise high-interest debt like credit cards and unsecured loans. Two common approaches can work: the avalanche method (paying off the highest interest rates first) or the snowball method (paying off the smallest debts first for psychological momentum). The key is having a plan and sticking to it. - Automate your payments
Reduce decision fatigue and the risk of late payments by automating your bills, debt repayments and savings. This removes the emotional burden of remembering each due date and helps create structure in your financial life. - Work with a qualified advisor
A Certified Financial Planner® can help you design a realistic, values-based financial plan. This includes budgeting, debt strategies and long-term financial security through tailored investment, risk, tax and estate planning. Importantly, a professional advisor also serves as an accountability partner, helping you stay the course through economic uncertainty and emotional ups and downs.
Why it matters
Attending to these areas doesn’t just ease your mind; it can genuinely help you sleep better at night. But the true value lies in maintaining these habits consistently. Small, incremental improvements in how you manage money compound over time, leading not only to greater peace of mind but also to a massive impact on your long-term financial position and overall net wealth.
Financial wellness isn’t about being wealthy; it’s about feeling secure, in control, and prepared for the future. Good money habits can enhance your sense of agency and reduce the mental burden that often comes with uncertainty. Combined with regular exercise, sufficient rest, and strong social support, sound financial management becomes a key pillar of holistic well-being.
So as Mental Health Awareness Month rolls around, take a moment to reflect: Are my financial habits supporting or sabotaging my peace of mind?
The journey to better mental health may start not with therapy or medication, but with a quiet commitment to better money management. Small changes today can bring both financial stability and emotional clarity tomorrow.
Connect with Theoniel McDonald, CFP® via LinkedIn or email at theoniel@wealthassociates.co.
