Financial Independence is a Mental Health Issue
Financial Independence is a Mental Health Issue
Tomorrow we release episode 19 of The What’s Up Next Podcast. It is an in depth look at the connection between financial independence and physical health. There are many connections. One of the main reasons why, I believe, is that financial independence is a mental health issue.
It might seem odd to categorize it that way at first, but is is undoubtedly true. A psychological sense of well being and control of one’s economic destiny are intimately tied.
Let’s explore a few ways in which this plays out in real life.
Money Insecurity
Those that live a paycheck to paycheck existence are under a great amount of duress. There is always the fear that at any moment the bottom will drop out. This fear can often lead to anxiety and depression. Sleep is lost. Vacation is absent or cut short to the most minimal of time periods. There is very little room to breath.
Financial independence is a mental health issue. The devastating effects of money insecurity create a feeling of desperation and inability to control one’s life.
A lack of options leads to feelings of hopelessness. Despair sets in. Instead of providing the strength to conquer the most difficult of tasks, money insecurity leads to the feeling that the hurdles of life are insurmountable.
Purpose and Identity
Ultimately we all strive to find our unique purpose and identity. This is often hampered by the constraints of the 9 to 5 work place. Instead of pursuing interests and passions, we are stuck slaving away in an office somewhere to make ends meet. This creates internal tension and anger. There is a disconnect between what we want to be doing with our time, and what we think we are forced to do for money.
Financial independence is a mental health issues because without reaching this level of security, we become slaves to our employment. We labor under the least durable of motives. Not out of joy or passion, but out of necessity.
This creates very reasonable, negative feelings towards our work place. Sunday nights become filled with anxiety and loathing due to the knowledge of what Monday morning will bring.
It becomes a very unhealthy cycle.
Happiness Takes Work
Happiness takes work. It takes space and time. Most importantly, it takes mental energy to focus on ourselves and create a life that fulfills our needs. Money is the great obstacle. It sucks away our time and energy in order to provide for basic needs and wants.
Financial independence is a mental health issue because it is quite difficult to pursue inner contentedness when so much of ourselves is being spent up during the work day accomplishing our job. We stumble back home at night spent.
Unhappy. Uncertain.
Final Thoughts
I think we have to start thinking that financial independence is a mental health issue. It is an important component to happiness and inner peace. Its absence sows chaos, and often leads to stress, depression, and anxiety.
When we overcome our economic shackles we create space, time, and energy to pursue better, more balanced mental health.
Who couldn’t agree with that?
Agreed, but some perspective is in order.
My parents grew up in the depression. In those days, one was happy to have the “shackles” of a 9 to 5. Mental health issues created by employment were secondary to fears of starving to death.
Very true.
yes mental health, perhaps the part of our human wellbeing most ignored. This is an interesting way to look at it. It also raises the question of what it means to be mentally healthy because most would say you are “healthy” without FI. Afterall the average debt per person in the US is about $38k not including mortgages so are we all mentally ill or are we mentally ok but having FI may help in moving up Maslow’s hierarchy?
I think the latter.
“A psychological sense of well being and control of one’s economic destiny are intimately tied.”
>Agreed, autonomy (economic or otherwise) is a key ingredient for human happiness
“There is a disconnect between what we want to be doing with our time, and what we think we are forced to do for money.”
> This does raise an interesting question of what it means to ‘make ends meet’. Is it covering the basic necessities of water, food and shelter? Is it owning a car? Two perhaps? How about a house? A house with two bedrooms minimum? A well appointed house? Our needs drive our desire for resources, i.e. money, which means that money insecurity can be the by-product of our desires / lifestyle inflation. Therefore, money insecurity can potentially strike a person no matter how much they are earning.
“Financial independence is a mental health issues because without reaching this level of security, we become slaves to our employment.”
> I’ve ummed and ahhrred on this but, unfortunately, I think this statement is correct. It leads to the logical conclusion that the vast majority of people will never escape the pseudo-slavery that is their employment (if employment is viewed in the broad sense of an activity that is required in order to earn necessary monetary reward).
“I think we have to start thinking that financial independence is a mental health issue. It is an important component to happiness and inner peace. Its absence sows chaos, and often leads to stress, depression, and anxiety.”
> I think it’s helpful to think about the link between FI and mental health as a matter of degree. The further away one is from FI, the less likely one is to feel contentment and inner peace and the more likely one is to experience the negative circumstances listed above. However, given that FI is a binary concept (one is either FI or one is not, and given that the vast majority of people do not reach FI, anecdotally, I don’t think that it can be correct that the mere “absence” of FI sows “chaos” in all cases. It is the degree of separation from FI that will have this effect.
As a result, many people lead very happy, contented and fulfilling lives without ever necessarily reaching FI.
HH
Good points. I agree that there is no absolutism. It is a matter of degree.
Health and Happiness are multi-faceted issues of balance and control. It is critical for Preventive Health Maintenance and avoidance of corrosive personal or professional Burnout to prospectively manage financial, mental, physical, spiritual, emotional, and relational balance in one’s life.
Very true.
I love your thoughts here along with the wide angle you used to approach this post. For me, genuine happiness and my work life are very integrated. When I love my work, my life is so fulfilled. However, if a situation or conflict gets stuck in my mind on a loop, I’m not able to shut it off. I am no longer able to obtain a “fake happy high” through distractions, obtaining items, or chasing down a challenge designed by others. I view this as a good thing. It’s hard for me to imagine my approach being otherwise, even though some people claim they can separate work and happiness by simply “living it up” on the weekends.
Anyhow, I’m a big fan of how you connect money and mental well-being. I’m very interested to hear even more connections when the podcast drops tomorrow.
Thanks, I hope you enjoy it.
My experience was stress was resolved when work discontinued and not before. In fact it’s part of why I quit. I realized every day I worked I was just buying risk with virtually no additional reward. I was financially independent for a long time prior to quitting.
Interesting, could there have been a work situation that wasn’t stressful?
It boils down to the inherent risk in a job. I do consulting for free for an engineering company because it gives me access to technology I’m interested in but in no way affects my cash flow or generates a malpractice risk or a CMS EHR headache or the hassle associated with making money. I get smart, they get an extra brain for their projects. In that case the “work” is stress free and virtually 100% devoted to the project.
I look at physician burnout as a three legged stool: there is work, self, and finances. Financial Independence offers you the ability to do work you love (your encore career) and do medicine as a hobby!
Well said.