Navigating Depression and Money: My Personal Journey and Financial Insights

If writing a blog on the internet wasn’t vulnerable enough (hello, internet trolls), today I’ve decided to combine everyone’s favorite taboo topics:

Depression and Money

Now, I’m no mental health professional but I have boots-on-the-ground experience in depression. And, as a personal finance coach for over 5 years, I’ve seen firsthand how these two areas impact each other. So, it’s time to talk about how depression has affected my finances — and how it might be affecting yours.

If you or someone you know is experiencing suicidal thoughts or a crisis, please reach out immediately to the Suicide Prevention Lifeline. These services are free and confidential.

The Impact of Depression on My Finances

Depression has changed the way I approach every aspect of my finances. From how I earn an income to how I spend, save, and invest — mental health plays a huge role in personal finance. Mostly, depression has provided an extra set of money problems–but it wouldn’t be fair to write this article without including the surprising silver lining: clarity.

For me, the impact of depression on my finances falls into three main categories:

• Smaller, everyday challenges

• Larger, long-term obstacles

• The silver lining

Let’s dive into each.

Everyday Money Challenges & Solutions

It’s easy to picture the ways depression impacts finances day-to-day like ordering takeout more often, increased therapy costs, and overspending on retail therapy. These smaller problems do have solutions. Unfortunately, they can feel out of reach when you’re in the thick of depression–but with the right support, they can become manageable.

Here’s a look at how depression impacted my daily finances and the workarounds I found to overcome it:

Money Problem: Increased Food Delivery

Making budget-friendly meals at home requires a lot of energy. Planning a meal and actually cooking it can feel like monumental tasks, and when either step fails, the fallback tends to be expensive food delivery.

My Fix: Frozen Meals

Frozen meals are my happy middle ground. They’re cheaper than delivery but way easier to manage than cooking from scratch. Stocking up on these helped cut my food costs without adding more stress.

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Money Problem: Wasted Entertainment Costs

As a depressed homebody, leaving the house felt like a Herculean effort. Yet, in my more optimistic moments, I’d say yes to events — like an $85 concert — that I wouldn’t end up attending.

My Fix: Do It Depressed

This one’s straight from my therapist: Just go, even if you don’t feel like it. It might not sound fun, but pushing myself to show up usually led to better (or at least equal) experiences than if I’d stayed home. Plus, it saved me from wasting money on no-shows.

— — —

Money Problem: More Online Shopping

I’m not typically a big shopper, but during depressive episodes, I’d overbuy things — clothes, jewelry, whatever — in hopes that they’d make me feel better. Spoiler: They didn’t.

My Fix: Increasing My Shopping Budget

This might sound counterintuitive, but raising my shopping budget during these times actually worked. Trying to stick to my “normal” budget just set me up for failure. When I increased it, I allowed myself some breathing room with a clear spending limit, which kept my finances in check.

— — —

Money Problem: Increased Therapy Costs

Therapy is great for everyone, but when I’m dealing with depression, it’s no longer a “nice-to-have” — it’s a necessity. With that comes more frequent sessions, and because of that a higher cost.

My Fix: Know Investing In Your Mental Health Is Always Worth It

Your mental health is priceless. Coming to terms with this truth helped me stop feeling guilty about the money I was spending on therapy. It’s always worth it to prioritize your well-being.

Affordable Care Options Ask about a superbill: If not covered, reimbursement might be possible. Local universities: Therapy students may offer discounted services. Sliding scale: Many therapists reserve spots for lower-cost care. Online platforms: Services like BetterHelp can offer lower-cost options.

Long-Term Financial Struggles & Strategies

Depression doesn’t just impact daily financial habits — it can affect your money on a much deeper level. These larger challenges often go unnoticed or, even worse, get blamed on personal failings.

Overcoming these obstacles usually requires long-term changes, and often, systemic change. There’s no quick hack or easy fix, but being aware of these challenges is the first step. And the second? Please stop blaming yourself if you’ve been caught in this cycle.

Not Believing You Deserve Better

When you’re dealing with depression, it’s tough to believe that you deserve more. Whether it’s staying in a low-paying job or living in an overpriced, run-down apartment, depression can trick you into thinking you have no other options.

Changing this mindset can take time, but it can transform your entire financial outlook. Believing you deserve better is the foundation for negotiating higher pay, seeking better living conditions, and making financial decisions that align with your goals.

The Cycle of Money & Depression

For many, money is a major source of stress — and stress can fuel depression. It’s a vicious cycle: Financial struggles lead to poor mental health, which in turn causes more financial issues like missed payments or job loss, which then worsens your mental health even further.

This cycle is hard to break, but recognizing it is key. Seeking professional help, whether it’s from a therapist or a financial advisor, can help you regain control and start moving in a positive direction.

Need support breaking this cycle? Schedule a free money consultation with me today.

The Financial Industry Doesn’t Have Forgiveness for Inconsistency

Depression makes showing up consistently difficult, but the financial industry doesn’t have much forgiveness for that. Mortgage lenders want to see two years of steady employment — ideally with no job gaps — while credit card companies can dock your credit score up to 100 points for a single missed payment.

And let’s not even get started on gaps in your resume when job hunting. The financial world rewards robotic-like consistency, but depression doesn’t work that way. Missing a payment or leaving a job due to mental health struggles shouldn’t carry such heavy penalties, but that’s the reality of the system we’re in.

The Unexpected Silver Lining

If there’s one thing depression has forced me to do, it’s get crystal clear on my priorities — and align my finances with them. The clarity it’s brought into my life is something that might have taken decades in a dead end job to discover otherwise.

I’ve realized that I don’t care about climbing the corporate ladder if it means sitting behind a desk for eight hours a day. I’ve come to understand that spending on experiences with friends and family feels way more fulfilling than buying more clothes. And I’ve learned that having freedom and autonomy over my time is essential to my well-being, which is why I’m working toward financial independence (FIRE) and embracing entrepreneurship.

This clarity around my values has given me a clear roadmap for my money. It’s changed the way I want to earn, how I plan to spend, and how I approach saving and investing for the future.

Final Summary

Depression impacts all areas of life, including money. In fact, it affects every aspect of your personal finances, from daily spending habits to long-term financial goals. Small challenges like increased food delivery or retail therapy can be managed with practical fixes, but larger, far-reaching obstacles often require deeper changes. Recognizing the cycle of depression and money, and understanding how the financial system isn’t always forgiving, is a crucial step toward breaking free.

However, my depression also has a silver lining: it brings clarity. It has challenged me to reflect on what truly matters and how to align my money with those values. That’s meant, focusing on financial independence, investing in my mental health, and creating a money strategy that supports a life of freedom and fulfillment.

Looking for support in managing your finances? Schedule a free consultation with me, and we can create personalized strategies that align your financial goals with your well-being.