How Sound Financial Advice Can Enhance Emotional Health
According to a 2025 survey, more than 70% of Americans state that they are financially stressed. For some people, financial stress can contribute to various mental health conditions, including anxiety and depression. However, sound financial advice may improve mental health and help people regain a sense of control in life. Keep reading to learn more about how financial advice can improve emotional health and contribute to long-term mental well-being.
How financial advice can help with mental health
How financial advisers can help with debt from credit cards
Financial advisers can often help people figure out the best way to pay down their debt. For example, advisers can often help people find ways to save on interest, such as by paying off high-interest cards first or transferring a balance to a low-interest card or loan. In other cases, a financial adviser may advise people to pay off a lower balance first in order to build momentum toward a debt-free life. In these cases, financial advice may be tailored to a person’s specific situation, including their income and assets.
Some financial advisers may be able to help people settle their debt so that they can get on a fixed payment plan with a lower overall balance. However, this typically affects a person’s credit score, so it may be best to get a second opinion before making a decision.
Building a savings account and other investments
Financial advisers can often help people find the right savings accounts and other investment vehicles for their unique needs. Some investments may come with unique advantages, such as higher yields or deferred taxes on gains. Moreover, investment choices are often best tailored to each person’s situation, including their income and expenses. An investment advisor can provide personalized recommendations that are best for the risk level that each person is comfortable with.
Financial advice on planning for retirement
Financial advice can often contribute to long-term financial wellness by helping people plan for retirement. A financial planner can often help people find the right type of retirement account for their unique situation. This may involve a 401(k), a 403(b), an individual retirement arrangement (IRA), or a Roth IRA. This decision may also depend on various factors, including the type of organization a person works for, any matching that the organization offers, and the age at which a person intends to retire.
How a mental health professional can help with stress from finances
In addition to consulting a financial adviser, some people may benefit from speaking with a licensed therapist. Therapists may be able to offer personalized strategies to help people change habits that affect their finances and therefore, their emotional health. A therapist can also provide evidence-based care for any mental health conditions a person is experiencing, which may help them reduce spending on emergency mental health care.
Online mental health support
Some people who are experiencing financial challenges might find it difficult to find affordable mental health services in their community. In these cases, online therapy tends to be a more viable option, as it can be more affordable than in-person therapy without insurance. Online therapy can also allow individuals to save on transportation costs, as they don’t have to commute to a therapist’s office.
In addition to providing affordability, online therapy has strong support in the counseling literature. One study found that online therapy was effective for depression, social anxiety, panic disorder, generalized anxiety disorder, and substance use disorder, among other mental disorders.
Takeaway
What is considered enough for retirement, according to financial advice?
The concept of having enough for retirement can be different for each person. Some advisers may recommend saving enough money to replace roughly 80% of your pre-retirement income every year. However, the right amount may vary depending on a person’s lifestyle and personal expenses.
What type of savings account helps for retirement?
A 401(k) can often be a good way to save for retirement, as it typically has compound interest. Some people may have an employer who matches a portion of funds that go into a 401(k). For example, if a person puts 4% of their pre-tax income into a 401(k), their employer may put 50% of that amount into their account. Other ways to save for future retirement include 403(b) and 457(b) accounts, as well as individual retirement arrangements (IRAs).
How can you handle debt from credit cards?
Some people may benefit from paying off credit cards with high interest rates first. However, others may find that they build momentum by paying off a card with a low balance first. It may be helpful to search for pro bono financial planning for advice on how to get out of debt and build savings.
What types of investments are best for me?
Investors might consider speaking with a financial adviser about the best investments for their unique needs. Financial advice is often tailored to the income and goals of each person, including the number of years they have left to work and their expected income. In some cases, investing in a low-yield option may be better than a high-yield, high-risk vehicle, but this may depend on the purpose of a specific investment. A financial expert can provide individualized guidance to help people make the best choice given their financial situation.
How can you fix your finances?
Financial advice may need to be tailored to the individual and their circumstances. However, most financial advisers recommend trying to pay down high-interest debt and building an emergency fund. Those with high amounts of debt and/or low income may be eligible for debt relief, but this service could affect a person’s credit report.
Where can you find reputable financial advisers?
Individuals in need of financial advice might consider searching for someone with designation as a Certified Financial Planner. It may be best to avoid any professional who guarantees results or says that it’s important to act immediately to avoid missing out on an investment opportunity.
Why is financial stability important for mental health?
There may be various reasons why financial stability can be crucial to mental health. In addition to providing a sense of safety, having financial resources can ensure that you receive appropriate mental health care when necessary. In the case of domestic violence survivors, financial stability can enable victims to leave a dangerous situation.
Can I talk to a financial advisor for free?
Yes. It is possible to talk to a financial advisor free of charge. Banking and investment professionals often provide free financial advice to clients, sometimes referred to as pro bono services. In some cases, a financial advisor may offer a free consultation for prospective customers who want to try their wealth management services before handing over their entire portfolio. Moreover, some companies, credit unions, and non-profit organizations offer credit counseling services for those in need of budgeting resources or financial planning services.
Who is the best person to ask for financial advice?
If you need personal financial advice, it may be best to talk to a financial advisor at your bank or credit union. A provider at a financial institution may be able to answer any questions you have without charging expensive fees. This can be a low-cost way to receive information about personal finances, business accounts, or investment accounts.
What is the root cause of financial stress?
In most cases, the root cause of financial stress is either high debt or insufficient income. In some cases, a combination of factors may contribute to financial strain.
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