November 2019
November Mental Health Challenge: Keeping a Budget
Finances can be a huge source of stress and there are countless studies that link financial stress with a decline in mental health. The holidays can put a significant strain on your wallet, and many people end up in debt after the holidays. If you are already struggling with your mental health this can put a further strain on you and exacerbate existing symptoms. There is pressure to attend every holiday party, to get the most extravagant gifts for your friends and family, and to always be in the holiday spirit. Not only is this unrealistic, it can be harmful to your mental well-being. In order to help with maintaining boundaries around the holidays, and to ensure that you get the most out of this times of year we are challenging you to create and set a budget and to try to stay within it.
Starting with simple steps such as tracking your spending and setting a daily budget can help you to start to see where your money is going. When you are in financial stress, how are you coping? Do you notice that you'll avoid checking your bank account? Will you turn to substances? Or do you go shopping (many people do this), which then adds to your financial woes. Start to pay attention to how you cope and if you notice some unhealthy habits, reach out for support from trusted friends or family. If you have a counselor or therapist you are working with, you can also ask them for support as well.
Mental Health Tip
Often times individuals do not know how to manage their money. Even the word budget can have them scratching their heads and wondering what to do. We often see clients who are struggling financially and who do not know how to make changes. When I mention to them financial advisors or tax free savings accounts or RRSPs they look at me like I am speaking a different language.
With it being the end of the year my tip is to take control of your finances. This means going to a financial planner at your bank and discussing with them your goals for saving. What are you working towards? Is it a house, car, moving out on your own, a vacation or trying to pay off your debt? Financial advisors are there to help you reach your goals.
If you feel like you need more help with your finances and are looking for someone to sit down and budget with you there are organizations that offer free financial counselling. One such service in Toronto is Woodgreen. They can work with you to determine how much debt you have and where to start with paying it off.
The other common financial stressor that my clients talk about is being behind on your taxes. If this is the case for you it can have your feeling like there is a weight on your shoulders. It can be important to take control of this situation. If you have not been contacted by the CRA yet then you can start by looking into getting help with getting your income taxes done. Take a look in your city for free income tax services. If you have been contacted by the CRA then call them back and set up a plan to start getting your taxes back on track. In most cases they will work with you. Whether you believe that you owe money or that you are due for a refund it is good to stay current on your income taxes. Remember the CRA charges interests on the money that you owe and they do not pay interest on refunds.