The Impact of Poverty on Mental Health: Understanding the Emotional Weight of Financial Struggle

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Picture is AI generated from Image Masters

I know what it is like to struggle with rent and food, it’s been a long time since that was part of my life, but I remember it vividly.  I also have close friends who had to sofa surf and even sleep in their car, and that period of their life has had a lasting impact on them.

Years of austerity and punitive polices have left many people in poverty even when they have a full-time job. Poverty is often discussed in terms of money, housing, employment and access to basic necessities. However, its impact reaches far beyond financial circumstances. Living with financial insecurity can affect our emotional wellbeing, our relationships, our self-esteem and our ability to cope with everyday life.

For many people, the ongoing pressure of making ends is exhausting. Worrying about rent, food, household bills or loved ones creates a constant sense of uncertainty. Over time, this stress can take a significant toll on mental health.

Like everything in mental health, poverty effects everybody differently and financial hardship does not automatically lead to mental health issues. But prolonged financial pressure can increase the risk of emotional distress and make existing difficulties harder to manage.

Chronic stress and anxiety are common for people dealing with poverty, when there is limited money everyday decisions become worrying. Our brains natural response to stress means questions such as how to pay the next bill, afford food or cover unexpected expenses will take over our thought processes. Uncertainty leaves us felling on edge, insecure and unable to relax, this impacts our sleep and our concentration. It does not take long before all decisions no matter how small feel overwhelming. If nothing changes, there is no space to recover from this stress.

When our circumstances feel like they will not improve we feel trapped, setbacks, limited opportunities and lack of control make us feel low and hopeless. We lose interest in things we once enjoyed, lack motivation and even withdraw from friends and family.

Currently in our society, far too often money means success, independence and achievement. If, we are struggling financially we often feel judged by others or the media will tell us we should be doing better with our lives. It becomes easy for us to compare ourselves to friends, colleagues or family members who appear more financially secure. When we are parents the guilt kicks in because we can not give them everything we would like them to have. We often need help too and that can cause shame to have to ask for it.

Even the strongest relationships are impacted by poverty. Disagreements about spending, saving or household priorities are common. When communication becomes strained, financial worries can lead to misunderstandings, resentment or loneliness. Parents may feel under pressure to shield their children from financial worries, while we may avoid social invitations because we cannot afford to participate.

Over time we can become isolated, turn down spending time with others, not because we don’t want to connect but because it costs too much or it feels too embarrassing.

One of the less visible effects of poverty is the mental energy required to manage it. Planning meals, travel, prioritising bills and balancing a non-existent budget will make us exhausted. When so much energy is devoted to meeting our basic needs, there may be little left for rest, creativity, relationships or longer-term planning.

Poverty and mental health difficulties can influence one another. Financial insecurity can contribute to anxiety, depression and chronic stress. In turn, mental health difficulties may make it harder to work, study, maintain relationships or manage everyday responsibilities. This can sometimes create further financial strain. For example, if we experience depression, we will find it difficult to attend work consistently. Reduced income can then increase financial worries, which may deepen feelings of anxiety or hopelessness. The vicious circle is complete.

When we are struggling financially, reaching out for support may feel like another challenge. We could worry about being judged, fear that we will not be understood, or feel that our problems are not serious enough to deserve attention.

Therapy can feel impossible if we have financial hardships, its just another thing to manage. The cost of counselling, transport, childcare or time away from work may make accessing support difficult.

But counselling can help us with living in poverty.

Understand our feelings: Explore anxiety, sadness, anger, shame or exhaustion without fear of judgement.

Recognise unhelpful self-beliefs: Challenge the idea that financial difficulties make us less worthy, capable or deserving of care.

Develop self-compassion: Learn to respond to ourselves with greater kindness rather than criticism.

Explore boundaries and relationships: Consider how financial pressures affect our connections with others and how you might communicate our needs.

Identify coping strategies: Find realistic ways to manage stress and make room for rest and emotional recovery, even when circumstances remain difficult.

Reconnect with our needs: Recognise that our wellbeing matters, even when much of our energy is spent caring for others or meeting essential responsibilities.

Counselling is not about pretending that difficult circumstances can be solved by changing our thoughts. It is about acknowledging the reality of our situation, understanding its emotional impact and exploring what support may be helpful.

But therapy costs money that we may not be able to afford, there are a few ways to access counselling starting with your GP to get a referral to NHS counselling or refer yourself to Talking therapies.

Nottinghamshire Mind, the Nottingham Counselling Centre  and the Nottingham Women’s Centre provide low-cost therapy. Look for group therapy, BeU Notts provides this free for young people but it is generally cheaper than individual therapy.

The Sherwood Psychotherapy Training Institute, Nottingham University and the Berne Institute all train counsellors, if you contact them, you may find free or cheap therapy with the trainees.

Look for counsellors with sliding scales or concessions on the Counselling Directory.

There are somethings we can do to help ourselves too –

Making space for our feelings. Rather than criticising ourselves for feeling overwhelmed, acknowledge that we are dealing with difficult circumstances.

Stay connected. Where possible, maintain contact with people we can trust. A conversation, a walk together or a free community activity may help reduce isolation.

Taking one step at a time. When everything feels urgent, identifying one manageable task can make our day feel less overwhelming.

Looking for accessible support. Local community organisations, Citizens Advice, NHS services, Family Action and free wellbeing resources may offer practical or emotional help.

We need to rest. We cannot be productive every moment to deserve a break.

If you are experiencing these difficulties, please remember that your financial circumstances do not define your worth. You deserve kindness, understanding and support, regardless of your income or situation.

Responding to poverty with compassion means moving away from assumptions about personal choices or individual responsibility. It means recognising the wider circumstances that shape people's lives and understanding that financial hardship can affect anyone.