2020 has not been a forgiving year. With Covid-19 disrupting the personal and working lives of many, little has been safe from its reign of destruction and mental wellbeing has come under attack from several angles.

Whether unemployed, a key worker providing vital services for the nation in these difficult circumstances, or a teacher fearful of bringing Covid-19 home to your family, times have undoubtedly been tough.

And, the chaos goes far beyond the biological aspects of the pandemic. In particular, the nation’s finances have been hit hard, with many people facing furlough, reduced salaries or even redundancy. This is having huge repercussions on mental health and unfortunately, as we continue into the economic downturn, this is only set to get worse.

Last year, findings from Perkbox’s 2019 UK financial wellbeing survey revealed that money is the biggest cause of stress in the UK, with 61% of employed adults agreeing to this claim. And, Covid-19 will only have exacerbated this, in fact, our recent report revealed that 42% of UK employees believe their mental health has worsened in the last six months.

However, ahead of World Mental Health Day this Saturday, there are several things you can start doing today to ease financial worries and improve your mental wellbeing, as the world works towards bringing the global emergency under control.

Set your goals and learn how to achieve them

When facing financial strain, it is often difficult to look to the long-term and see a light at the end of the tunnel. And in uncertain times such as these, it is easy to see why. In fact, our research demonstrated that over half (52%) of UK employees already worry about money at least once a week.

Why not take the pressure off? Park that daunting 5-year plan, and instead focus on what you can change right now. Setting smart and achievable goals – such as reducing your weekly spend to increase your monthly savings and building emergency funds for a rainy day – may not seem like a lot in the grand scheme of things but are a step in the right direction toward financial security and peace of mind.

It is these little steps that lay the foundations for longer-term financial dreams, including

getting out of debt, moving out and getting on the housing ladder.

Set a budget – write it down!

Did you know that people who write down a budget are three times more likely to stick to their plans?

No? Have you ever popped to the supermarket for milk and returned an hour later with a trolley’s worth of items and a bank account £50 lighter?

Even the best intentions can go astray, and you’re not alone on this. It’s an easy mistake. And, without a budget or written plan, it is easy to lose track and spend more money than we intend or even realise.

When it comes to financial wellbeing, every penny counts. And knowing exactly where your money is going – and how much you have coming in – will give you greater control to improve both your financial and mental wellbeing.

Save and invest effectively

Financial stress can be daunting and if your money worries are causing you to feel anxious, it’s important to know you’re not alone. In fact, our research revealed that 76% of people do not feel completely confident in their money management skills.

But there are many simple approaches that can help you feel in control. The 50/30/20 budgeting rule is a great example. You divide your money into three categories: needs, wants and saving. All your outgoings should be accounted for in one of these categories, with needs accounting for 50%, wants 30% and savings 20%.

This is just one example of an easy way to help balance priorities, making sure you meet your spending commitments, while also enjoying yourself and saving for the future too!

Even if you feel you’re in financially stable position, it’s always worth investing in your future to help sustain a greater sense of security and control – especially at a time when the future can seem so uncertain.

Address issues head on

It can be tempting to bury your head in the sand and not concern others with your money worries, but a problem ignored will only get worse. Feel empowered to ask for support when you need it, whether it be a family member or creditors. Letting others know about any underlying mental health issues will help them be more sympathetic to your situation, offering them the opportunity to work with you to address these financial problems.

We know that, now more than ever, a huge cause of anxiety and poor mental health is feeling out of control of your finances. But with so much support available and many places to go for free advice, it is important to remember that many people are in the same position and there are always steps you can take to control your finances, safeguard yourself and build a brighter financial future.

Article: Tim Perkins, co-founder of nudge