As the chase for financial independence intensifies, many individuals are quietly battling the emotional repercussions of this relentless quest. Sebastien Alexanderson, Head of National Debt Advisors, unpacks the pressure to present an image of affluence in the modern age.

9 October 2024: In a society that glorifies wealth and financial independence, many are silently grappling with the hidden emotional toll of this relentless pursuit. As South Africans strive to achieve the ultimate financial dream, they often find themselves ensnared in a cycle of anxiety, shame, and burnout.

This is according to Sebastien Alexanderson, Head of National Debt Advisors, who said that as we observe Mental Health Awareness Month, phenomena like “money shame” and burnout due to the “golden cuff” beckon a closer look at the undeniable link between money and mental health in South Africa.

"Money has a profound impact on mental health," said Alexanderson. "People feel ashamed about not having enough, and that shame often spirals into anxiety or depression. When people feel they don’t measure up, it affects their self-worth, relationships, and even their ability to make sound financial decisions."

He highlighted that this toxicity was intensified with the advent of social media and its influence on everyday life.

"Social media amplifies the pressure to appear wealthy, whether or not that's a reality," explains Alexanderson. "The constant exposure to images of expensive cars, designer outfits, and lavish vacations makes people feel inadequate. They end up comparing themselves to a lifestyle that is often unattainable."

The Modern Paradox: Golden Handcuffs and Workplace Burnout

Another overlooked aspect of the modern economy is workplace burnout and the growing trend of golden handcuffs. A recent global survey by Great Place to Work found that 22% of employees across 1,570 companies reported burnout. Surprisingly, many of these employees also described their workplaces as “great,” thanks to financial perks that kept them bound to their jobs. Alexanderson noted that this paradox highlights the complexity of modern career pressures.

The World Health Organisation (WHO) defines burnout as a syndrome resulting from chronic workplace stress that hasn’t been effectively managed. This manifests in limited control over one’s schedule, lack of decision-making power, and poor communication with management—factors all too familiar to those navigating high-pressure jobs.

Golden handcuffs, on the other hand, refer to high-paying compensation packages—often paired with benefits like bonuses or stock options—that make it difficult for professionals to leave their roles, even when they feel unfulfilled. While the financial incentives are strong, the personal cost can be high.

"We see many clients, particularly in high-earning fields, who feel stuck," says Alexanderson. "They’ve built a lifestyle that requires a certain income, and stepping away from that seems impossible, even when their work is negatively affecting their health."

Financial Stress and Sleep Disorders

This high-pressured lifestyle often leads to accumulating debt, which can contribute to mental health issues. Research published in the BMC Public Health Scientific Journal reveals a rising link between over-indebtedness and sleep disorders, such as insomnia and sleep apnea.

"A cross-sectional study conducted in 2017 surveyed 699 over-indebted consumers, revealing they experienced a higher prevalence of sleep problems compared to the general population," said Alexanderson. "Those in debt were nearly four times more likely to use sleep medications."

Tips for Mindful Spending

Alexanderson offered the following tips for practicing mindful spending to support mental health:

• Pause Before You Purchase: Determine if a purchase is a need or a want. Consider implementing the "48-hour rule" for non-essential items to see if the urge fades.
• Track Emotional Triggers: Identify emotional triggers that lead to impulsive spending and replace retail therapy with healthier activities like exercise or journaling.
• Set Financial Goals that Reflect Your Values: Align your financial goals with your core values to shift focus from instant gratification to long-term fulfilment.
• Prioritise Experiences Over Material Goods: Spend on experiences rather than material possessions, as they bring more lasting joy.
• Create a Conscious Budget with Guilt-Free Splurges: Build a budget that includes a small, guilt-free spending category while prioritising your financial goals.

"Many of our clients report feeling like they have no control over their lives outside of work," Alexanderson explains. "Even though they’re earning more than they ever thought possible, they’re deeply unhappy and heavily indebted."

He concludes, "Let’s change the conversation around money. It’s okay to be where you are financially. The real success is in managing your finances responsibly and focusing on what truly matters in life."

About National Debt Advisors:

National Debt Advisors is South Africa’s leading debt counselling company, helping South Africans become debt-free in under 60 months. NDA negotiates with creditors for reduced interest rates and extended terms, consolidating debt repayments into one lower instalment. This protects consumers from harassment by creditors, secures their assets against repossession, and leaves them with more money to live on. NDA is dedicated to helping South Africans achieve financial freedom.

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