04/11/2025
Mental Ill Health and Managing Your Money
Many people living with schizophrenia find it hard to run their finances successfully and sometimes end up in debt. Here are a few tips on how to manage your money better.
Learn how to budget and set aside a regular time each week to check your bank balance, pay outstanding bills and budget your spending for the following week.
Try to preserve your credit rating as, without a good credit score, you will not have access to the lowest cost banking facilities and credit will be more difficult to obtain and will inevitably cost more. Check your credit record at least once a year by requesting it from one of the credit reference agencies such as Equifax (https://www.equifax.co.uk/). This usually only costs a few pounds.
When budgeting try to keep a minimum balance of at least £100 in your bank account as a margin of safety. This may take a little practice but is achievable over time. Get used to treating that money as dead money. It will help prevent you from going overdrawn and attracting charges from the bank for unauthorised overdrafts so will pay for itself in the end.
Don’t have large credit limits on your credit cards. Keep your credit limits to just a bit more than you normally spend each month. There is no point in having excessive credit limits: they can lead to debt problems and will affect your credit rating.
Prioritise your spending giving top priority to any debts that threaten your liberty such as court fines and then next to bills associated with your home such as rent or mortgage, service charges and Council Tax. Next, come your work expenses such as travelling to work, meals etc. Then basic living costs such as electricity, gas, ‘phone, water and food. Make sure that you cover all of these expenses before spending on anything else.
It is a very good idea to keep some money for a rainy day. Save into a separate account on a regular basis so that you have a reserve of money to help meet any unexpected large bills.
Managing your finances is a vital skill that people living with schizophrenia need and sometimes lack. But like so many aspects of daily living, good financial management can be learnt with a bit of research and time.
Contact us on email at: info@livingwithschizophreniauk.org