We’re nearing a financial burnout crisis. And it’s only getting worse

Between interest rates, inflation, the Budget, ongoing global instability and volatile share markets, it feels like every time you try to so much as blink or draw breath right now, something new – and potentially stress-inducing – is happening in the economy.

And all of that’s before you even get to everyday real-world issues like how worried you need to be about the fuel excise wrapping up in a month’s time, grocery and utility prices remaining high, health and home insurance premiums rising and school fees getting more expensive each year.

We are expected to be on top of our bills, know if we’re with the best energy provider and where to get the cheapest petrol from, put away enough money for that next holiday, manage our share portfolios and ensure they’re diversified enough, have regular check ins with our partners about how goals are tracking, and get across recently announced changes to things like capital gains tax, negative gearing and the NDIS – all while trying to balance every other aspect of our lives.

For some people, this inundation of information might be water off a duck’s back. But even for me, as someone who works in the finance industry, there are days when the sheer volume of information, competing factors and considerations feels completely and utterly overwhelming.

If you know the feeling I’m referring to, you might be suffering from something called financial burnout.

Burnout is something that’s gained a lot of traction recently, especially during and after COVID-19, and generally, it refers to experiences tied to our work or workplaces. Though it’s not a recognised disease and there is no formalised diagnosis, burnout refers to a syndrome that can come from chronic or long-running stress.

Much like regular burnout, there are things you can do to turn things around, and relatively quickly.

Per the Butterfly Foundation, symptoms of burnout can include things like feeling isolated or trapped, appearing more irritable than usual, having a lack of energy or motivation, a persistent or lingering sense of stress, a struggle to sleep or experiencing a change in sleeping patterns, a drop in general happiness or satisfaction, being disengaged or experiencing headaches and physical discomfort.

Financial burnout is much the same, in that you’re likely to experience the same or similar symptoms, but rather than being brought on by work, they are specifically linked to your financial situation.

The unfortunate thing about this kind of experience is that much like a workplace, many things can lead to financial burnout. You could be going through a particularly stressful experience like a divorce or trying to get on top of debt, but it may also come about after years of sustained demand and pressure you feel from managing your finances.

But whatever the root cause is, the impact is the same: your financial reality becomes overwhelming to the point that it seriously impedes your daily life and your outlook in a way that can’t simply be shaken off with a good night’s sleep or a long power walk.

It’s as if all the stress from those individual decisions you’ve had to make or research you’ve had to do has slowly piled up and up and up, and now that giant pile of mental dishes is overflowing from the sink and spilling out across the kitchen bench. And the problem is that by the time you realise what’s happened, you’re out of detergent and sponges, and the hot water isn’t working.

What’s also tricky about experiences like financial burnout is that even if you’re in a good place financially, it can still hit. You may be earning a good salary, be on top of regular bills and have a weekly budget that works.

But as I’ve previously written about when discussing financial dysmorphia, a positive reality isn’t always the natural antidote to how you’re feeling and when there is so much going on in the world those feelings of overwhelm can quickly snowball for anybody.

Having said that, you’re more likely to be at risk if your financial decisions feel out of your control, if you are carrying all of or most of the load when it comes to financial decision-making, or if you don’t feel as though you have someone to talk to about how you’re feeling.

The good news in all of this is that much like regular burnout, there are things you can do to turn things around, and relatively quickly.

To my mind, the first and most important thing to do is to work out what has caused you to feel this way. When you’re thinking about this, try to be granular and clear rather than going broad.

Let’s say, for example, economic uncertainty is the first thing that comes to mind for you. From there, is it that you’re worried about what this means for your immediate future or your job security or plans you might have?

Then, think about what makes these feelings spike and spiral. Is it checking the news first thing when you wake up or not having a clear and workable plan in place for the short-term goals you want to reach?

Or is it that you don’t feel as though your emergency savings are as robust as you’d like them to be, or feel as though you need some help from your partner when it comes to making decisions or tracking spending?

Once you have a clearer understanding of those things, you can start to make immediate changes to reduce the stress such as asking for help with budget management or learning more about a topic to take out some of the uncertainty.

You can also then take another important step – talking to someone about how you’re feeling. A friend or a partner is a great place to start, but councillors, psychologists, financial support helplines or a financial planner are also great options to help you develop strategies to cope in the long term.

From there, an important immediate step to take is to try to reduce as many decisions as you can to give yourself some much-needed mental space, as well as prioritise things that will make you feel good and that you know will help relieve some of the stress that you’re feeling.

By reducing your mental load as much as possible and going back to the bare minimum while you put in place longer-term changes and learn strategies to avoid feeling this way, you’ll be in the best position to avoid financial burnout in the future.

Just as we have to keep working even after a bad experience with a colleague or in a particular job, spending money is not something we can escape from entirely.

That’s why making sure you get back on top of it after it gets on top of you is so important – especially in those times when it feels too hard.

Victoria Devine is an award-winning retired financial adviser, a bestselling author and host of Australia’s No.1 finance podcast, She’s on the Money. She is also founder and director of Zella Money.

• Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their personal circumstances before making any financial decisions.

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