Seasonal Depression and Money: How to Protect Your Finances When the Season Feels Heavy
SAD, Winter Arc - Social Media loves to give a name to a thing! But, Seasonal Affective Disorder (SAD) affects many people during the darker months, with symptoms often peaking in the early part of the year. While commonly associated with mood and energy shifts, SAD can also take a toll on your finances. I know that it can impact me to start swiping and checking out things that don’t check into my budget. So I knew that I wanted to add this context to the blog content. Learning about how things like memories and months of the year can impact not only your mood, but your money is critical. Behavioral Finance is a thing and more people (even Financial Planners) need to start calling the thing an actual thing. Let's explore how SAD might influence your financial decisions and provide actionable tips to help you stay on track.
What is SAD And Behavioral Finance?
Seasonal Affective Disorder (SAD) is a type of depression that occurs at certain times of the year, typically during the fall and winter months. It's linked to reduced sunlight, shorter days, and changes in serotonin and melatonin levels in the brain, which regulate mood, energy, and sleep. Symptoms can range from low energy, irritability, and difficulty concentrating to changes in appetite and a general sense of hopelessness.
When these feelings set in, they can seep into how you manage your money. Decisions that might seem easy during brighter months—like following a budget or avoiding impulse purchases—can become overwhelming or emotionally driven. SAD doesn't just influence how you feel; it can also shape your financial habits, often in subtle but impactful ways.
One of the things that I like to call out when meeting with clients is to understand your “Money Story”, unlocking not only your first time knowing about money but even core memories around it. Understanding these tendencies is key to approaching your finances with empathy. Recognizing that your brain might be pushing you toward certain decisions allows you to pause, reflect, and make adjustments that align with your long-term goals.
Winter Arc can help people establish healthy habits that can be maintained into the new year. While it’s often focused on fitness and eating, having a healthy money habit is key for that growth as well. It allows you to reinvent yourself - in every area of your life!
If you notice yourself avoiding your budget, overspending on comfort items, or procrastinating on bills, it’s not a lack of discipline — it’s a normal response to this season.
Behavioral finance examines how psychological influences and biases impact financial behaviors. During periods affected by SAD, individuals may experience:
Impulse Spending: Seeking instant gratification to counter feelings of sadness or fatigue.
Avoidance of Financial Responsibilities: Ignoring bills, budgets, or financial planning due to low energy or mental fatigue.
Emotional Spending: Using money as a comfort tool, which can lead to regret or financial strain later.
Recognizing these patterns is powerful. Awareness allows you to build systems and habits that protect your money, even when your energy or motivation is low.
Practical Ways to Stay on Track
Even when the season feels heavy, small adjustments can keep your money and mindset steady:
Simplify your budget: Focus on essentials and create a bare-bones version for this season. Less complexity reduces stress.
Delay impulse buys: Use a 24-hour rule before non-essential spending — most purchases don’t feel as urgent the next day.
Automate small savings: Even $10 a week into a high-yield savings account adds up without adding stress.
Plan meals ahead: Prep meals or pick up family meals from stores like Whole Foods for days you don’t feel like cooking.
Create a sinking fund for joy: List things that lift your mood and set aside money to fund them. Small rewards can make a big difference.
Journal: Track habits, spending, and emotions to notice patterns and triggers.
Stick to your long-term plan: Avoid panic-checking investments — short-term market fluctuations are normal.
Celebrate small wins: Paying a bill, hitting a savings goal, or simply following your budget for a week matters. Positive reinforcement helps counter the negativity SAD can bring.
Reframe This Season
Seasonal depression doesn’t mean you’re failing financially or personally. It means your energy is different, and your systems need to match. Use this season as an opportunity to simplify, automate, and build financial habits that work even when motivation is low. Small, intentional steps now create stability for the months ahead — and remind you that progress, not perfection, is what matters most.
Sinking Fund For Self-Care
If your budget doesn’t allow for a tiered method of self-care spending, consider creating a sinking fund. Here’s how:
Deep Dive: Identify what activities or items bring you joy and categorize them by price:
$0–$15: Reading a library book, taking a walk, journaling.
$16–$30: Treating yourself to a coffee date, and buying a new journal.
$35 and up: Scheduling a spa day or trying a new hobby.
Automate Savings: Allocate a small amount each week or month into this fund based on what’s left in your budget.
Flexibility: Use the fund as needed, prioritizing based on how you’re feeling and what fits within your budget.
No Spend Or Low Spend Challenge
To reset your budget and spending habits, try a No Spend or Low Spend Challenge:
Step 1: Track spending for two weeks to identify areas where you overspend.
Step 2: Choose a challenge format, like spending only on essentials or setting a daily spending cap.
Step 3: Get creative with what you already have during the challenge.
Why: These challenges build awareness around spending habits and help you recalibrate your budget without drastic measures.
To learn more about No Spend/Low Spend Challenges, take a spin to this blog post and YouTube that talks about them in more detail!
How SAD + Your Winter Arc Can Help You Rebuild Your Finances
While SAD and tough financial times can feel overwhelming, they can also be a turning point. Sometimes, hitting pause during your "Winter Arc" gives you the clarity to reflect, reset, and create a stronger foundation for your finances. Here's how:
1. Reflect On Your Financial Habits
Use this time to take an honest look at your money habits. What’s working? What’s not? This isn’t about judgment—it’s about awareness. Consider these questions:
What emotional triggers lead me to overspend?
Which areas of my budget feel the most out of control?
What small wins am I already achieving?
2. Set Financial Goals That Feel Achievable
Big goals like paying off debt or saving for retirement can feel daunting, especially when you're struggling. Start small:
Choose one area to improve, like reducing impulse spending or saving $20 a week.
Break larger goals into bite-sized milestones to build momentum.
3. Build A Money Management System That Works For You
Your Winter Arc is the perfect time to create a system that aligns with your energy levels and priorities. Here’s how to get started:
Automate What You Can: Set up automatic transfers to savings accounts, sinking funds, or retirement accounts to eliminate decision fatigue.
Create a Money SOP (Standard Operating Procedure): Develop a step-by-step system for tracking spending, paying bills, and reviewing your finances.
Leverage Tools: Use budgeting apps or spreadsheets to simplify your financial tracking. Here are some of my favorite money tools/ apps.
My Tango With SAD And The Winter Arc
In 2010, during a difficult time of unemployment, I experienced my own Winter Arc. It was a period filled with reflection, regret, and a lot of lessons about what I hadn’t done right with my finances. It hit me hard—not just emotionally, but also in my wallet. That experience forced me to take a closer look at my money habits, set realistic goals, and eventually build a system that worked for me. It wasn’t easy, but it was transformative. And if you’re in a similar place, know that you can use this time to create something better for yourself, too.
Journal Prompts To Help You Reflect + Reset
To keep things practical, try journaling through these prompts:
How do I want to feel about my money a year from now?
What are three small changes I can make to feel more in control of my finances?
What spending habits make me feel good vs. those that leave me feeling stressed?
Book Recommendation: "The Art of Money" By Bari Tessler
While many financial books focus on investing or budgeting, these encourage a deeper understanding of your relationship with money. It’s a great read to inspire reflection and help you align your spending with your values. If you want to dive into the emotional side of money management, "The Art of Money" by Bari Tessler is a great read. Tessler weaves together practical financial tools, emotional support, and personal stories to help you reshape your relationship with money. It’s not your typical finance book—it’s approachable, heartfelt, and perfect for those navigating both emotional and financial challenges. And you know that I have an Amazon list of books for you to check out when it comes to your money journey.
Taking Care Of Yourself + Your Accounts
I want you to really lock in on your accountability and also your accounts, not only this time of year but for every day that ends in “y”. This season is a great time to check in on both your mental health and your financial health. Prioritize tasks that bring you peace, such as decluttering financial documents or updating account beneficiaries. Remember, this isn’t about perfection but progress.
Need More Support?
Managing money during challenging times doesn’t have to be lonely. If this resonates, explore more in my blog archives, including the post on ADHD and the "ADHD Tax," or reach out for tailored financial guidance.
