Managing finances can be physically and emotionally draining for individuals with depression, especially when decision fatigue sets in. Combined with other mental health challenges and financial stress, this can create a cycle that’s hard to break.

This guide provides strategies to simplify your finances and reduce overwhelm.

Key Takeaways 

• Depression and decision fatigue can make managing finances overwhelming.

• Signs of decision fatigue include exhaustion, brain fog, and decision paralysis.

• Simplify tasks by setting priorities, automating payments, and using tools like Trustworthy.

Understanding Decision Fatigue and Depression

Depression often brings anxiety and impaired focus. Decision fatigue adds to this, making even small financial decisions feel overwhelming. Procrastination and avoidance can lead to missed payments and mounting stress.

Lauren Farina, a registered psychotherapist in Oak Park, Illinois, explains:

“Decision fatigue refers to the burnout that we experience as a result of the mental burden of making too many decisions in a short period of time. Think of it this way: We all have a finite pool of internal resources, including time, energy, attention, and focus. We draw from that pool to attend to any and all of life's demands, no matter how big or how small.

"Whether it be deciding what to have for dinner or choosing which employee to assign to a case, these decisions deplete us of those internal resources. If we are not intentional about replenishing those reserves, we may find ourselves burned out or decision-fatigued.” 

Common signs of decision fatigue in daily life include: 

• Feeling emotionally and physically drained.

• Struggling to choose between simple options like what bill to pay first or even what movie to watch.

• Brain fog.

• Irritability.

• Impulsivity: being less careful about decisions that will have a wide range of consequences.

• Feeling paralyzed when it comes to making financial decisions . 

The Psychological Link Between Money and Mental Health

A Bankrate survey found that 47% of American adults say money has a negative impact on their mental health and has caused stress.

Emotional triggers like guilt, shame, and fear often accompany financial tasks like paying bills or filing taxes. This can lead to avoidance, worsening financial stress and creating a cycle of guilt and procrastination.

It is incredibly important to break this cycle to prevent further financial problems and ensure your mental health does not deteriorate. While it may be challenging, even the smallest step toward financial organization can make a big impact and help motivate you to carry on.   

Breaking Down Financial Decisions into Manageable Steps

Here are some manageable steps you can take to help make financial decisions less daunting. 

Prioritize Urgent vs. Non-Urgent Financial Matters

When you start, it is a good idea to organize your financial tasks into two categories: urgent and non-urgent. Your urgent tasks will include paying all overdue bills, checking when all bills are due, and ensuring you avoid late-payment penalties. Non-urgent tasks include planning a long-term budget for better money management and reviewing outdated or unused subscriptions. 

Start tackling the urgent tasks first to eliminate stress, making you clearer-headed when working on non-urgent tasks. 

Take Small Steps to Tackle Financial Goals

Break large tasks into smaller steps, like paying overdue bills one day and creating a budget the next. Small, achievable steps build momentum and confidence.

Avoid 'All-or-Nothing' Thinking When Managing Finances

Managing your finances is not about perfection but functionality. Even the smallest changes can go a long way in getting you there. Remember to take the time to celebrate the small wins because this is an ongoing process. 

You don’t have to do this all on your own. Use Trustworthy to help you manage your finances. You can create payment reminders, build a budget, and organize your financial documents for easy access.    

Automating Finances to Reduce Decision-Making

Limit the number of decisions you need to make regarding your finances by using automated systems to your advantage.  

Set up Automatic Payments 

One of the best ways to ensure that all bills are paid on time is to automate payments. You can create automatic payments on your bank account for things like rent, loans, credit cards, and utilities. Not only does this reduce stress, but it also helps build financial security, knowing your bills are already paid. 

Tools to Help Manage Spending and Budgeting

If you’re looking for a finance tool that helps with budgeting and setting up payment reminders, Trustworthy is your No. 1 option. It helps minimize the mental toll of making numerous decisions for you and has advanced security features like 256-bit AES encryption, two-factor authentication, facial recognition, and fingerprint authentication to keep your financial information safe. 

Create a Supportive Financial Environment

Set yourself up for success by creating a supportive financial environment to help you achieve your financial goals and stay motivated. 

Identify a Trusted Friend, Family Member, or Financial Coach for Guidance

You don’t have to handle all of this decision-making on your own. Share your financial concerns with a trusted friend, family member, or financial coach. They can provide moral support, provide accountability, and make you feel like you’re not alone. You may even find that your trusted individual has the same worries or concerns, making them more relatable. Financial coaches are great for supportive and non-judgmental help during this time.  

Delegate Complex Financial Tasks 

If you’re feeling overwhelmed or stuck when dealing with complex financial tasks like filing taxes, delegate these tasks to professionals. This allows you to focus on manageable financial tasks.  

Build Positive Financial Habits 

Developing healthy financial habits can improve your mental health over time. Start small, as habits can take weeks to form. Set alerts for account balances or schedule weekly or monthly finance reviews to build confidence and reduce overwhelm.

Trustworthy’s reminder feature can help you stay organized and create positive habits while keeping your financial documents secure.

Building Emotional Resilience for Financial Decision-Making

Managing finances calmly helps build emotional resilience and confidence. Money often triggers feelings of guilt or shame, but acknowledging these emotions is the first step to overcoming them.

Focus on the progress you’ve made rather than past mistakes. Use mindfulness techniques like deep breathing to reduce anxiety and celebrate small wins, like sticking to a budget or paying off debt, to stay motivated.

When Professional Help May Be Necessary

There may be a time when you need to ask for professional help, and this is okay. Some signs you may need professional financial advice or mental health support: 

• You’re struggling to meet basic financial obligations.

• You’re avoiding financial tasks for a prolonged period.

• You’re constantly feeling guilty, ashamed, or anxious about money. 

Financial therapists are specially trained to assist with mental health and money matters. They can equip you with tools to manage your depression while making decisions.

Practical Tools and Resources for Simplifying Finances

Trustworthy is a great resource to use, thanks to the payment and task reminders, AI-powered filing features for organized storage, and automatic form-filling to save you time. Trustworthy also makes the whole process of organizing your important financial documents stress-free by connecting you with Trustworthy Certified Experts™ like professional organizers.

In addition to apps, resources like books and podcasts on popular platforms like YouTube and Spotify offer practical and relatable advice. For example, "The Mental Wealth Show" is a popular podcast that addresses the link between mental health and money. 

Also, consider joining local and online support groups. These groups offer a safe space to share experiences and solutions while meeting other people who can relate to your emotions. They can also point you toward accessible resources. 

Frequently Asked Questions

How does financial stress worsen depression symptoms?

Psychotherapist Farina explains: “For most people, our financial health predicts our sense of safety and security. When our financial stability is threatened, we may also interpret this as a threat to our safety and survival, if only on a subconscious level.

"The stress that this sense of danger engenders further depletes us, driving us deeper into a state of depression. Financial stress often erodes our sense of agency to set goals and to work to achieve those goals; we may feel "stuck" or otherwise disempowered.”

Are there alternatives to automation if I don’t feel comfortable with automatic payments?

You can set up reminders without automatic transactions on your phone, calendar, or with Trustworthy. For example, you can create an alert to remind you to make a payment. 

What can I do if I feel overwhelmed by unexpected expenses or financial emergencies?

Despite your best planning, unexpected or emergency expenses can pop up. When they do, you should contact creditors to request payment extensions and seek help from support programs or your financial coach.