Sarah Wells: Financial burnout is real, and it’s a growing problem. Here’s how to spot signs and fight back!

In an era defined by relentless pressures and the demand to achieve more with diminishing resources, a subtle yet pervasive phenomenon is taking hold: financial burnout.

Many of us navigating multifaceted roles find ourselves teetering on the precipice of exhaustion, a condition born not of physical labour but of the ceaseless mental and emotional strain of financial anxiety.

Financial burnout, at its core, is a state of profound weariness triggered by prolonged financial stress. It manifests as a constellation of distressing symptoms, including a sense of hopelessness, acute anxiety regarding monetary matters, and a pervasive feeling of being overwhelmed by financial obligations.

The confluence of our modern responsibilities, coupled with the escalating costs of living, creates fertile ground for the weight of bills, debts and seemingly unattainable savings goals to grow into an insurmountable burden.

So how do we not “flame out”? First, we need to spot the signals and the onset of financial fatigue.

Constant worry, for instance, is a hallmark symptom. If an individual’s thoughts are consistently consumed by financial concerns — bills, debt or the adequacy of savings — it is a clear indication of potential burnout. This persistent worry can disrupt a person’s peace of mind and significantly impair their overall wellbeing.

Decision paralysis is another red flag. The feeling of being overwhelmed by financial choices can lead to a state of indecision, and flow into the inability to make necessary financial decisions relating to investments or budgeting. This state is a strong indicator of emotional exhaustion.

Avoidance behaviour is another symptom. The tendency to avoid checking bank balances while tapping or leaving financial emails or snail mail unopened is a common coping mechanism, but it can exacerbate the underlying problem. Avoidance creates a cycle of stress and anxiety, as the unresolved issues do not simply dissipate — they often intensify.

Financial burnout is not merely a personal issue; it has broader implications for our societal wellbeing. Recognising and addressing it requires a multifaceted approach, including increased financial literacy, accessible support systems, and a societal shift towards recognising the pressures faced by individuals navigating contemporary financial landscapes.

Decoding financial strain: Recognising the call for action

Unrelenting anxiety: When financial concerns dominate our thoughts, eclipsing our overall peace of mind, it is a call to address any underlying stressors. This persistent worry is a barrier to wellbeing, which demands resolute action.

Physical manifestations: Headaches, fatigue, and sleeplessness are the body’s language of distress. These are not mere inconveniences, nor markers of failure, but invitations to resilience. Recognising them empowers us to take steps towards financial wellbeing and the need to gain a renewed sense of control.

Actionable steps to combat burnout

Detach, don’t unsubscribe: Take breaks from financial tasks. Prioritise self-care and joy in the little things in life, but be mindful of comparison, as it is the thief of joy.

Realign: Evaluate goals; adjust to make them achievable. Consider re-imagining what is possible, rather than what you think will make you happy. Then take a step back and assess your goals with that realistic view in mind.

Connect: Build a support network; share experiences and make money part of your normal conversations rather than a taboo topic, unspoken about because of fears that those closest to you will judge you.

Learn: Invest in financial education; gain knowledge and learn about value rather than cost. When you shift your focus to valuing things, your mindset will change, and your day-to-day decisions will begin to align with your goals.

Budget like a CFO: Track expenses, create a clear plan and underpin it with a strategy — a little corporate finance in your personal economies will make all the difference.

Review and realign: Regularly assess and adjust your financial strategies.

Financial burnout is a very real phenomenon that many of us experience, even those of us in the finance world.

When we accept that life is unpredictable, and that financial plans will need to change to suit our circumstances, we can then allow ourselves permission to adjust, and lessen the risk of a flame out.

Sarah Wells is a Perth money and finance commentator