The Most Effective Way to Avoid Burnout - The Broke Professional

The Most Effective Way to Avoid Burnout

Burnout doesn’t really have an official definition. But it can be characterized by bouts of depression, hopelessness and feeling flat from being stressed out at work.

Anyone can experience burnout, but it is pretty common among high income professionals such as doctors, lawyers and dentists.

Doctors are especially prone to feeling burnout out from work. Depending on the specialty, the rate of burnout can be anywhere from 30-40%. This is a popular article by a surgeon in Australia about the particular reasons physicians are feeling stressed and burnt out. Pretty fascinating read.

Burnout is real. So how do we address it? There are a number of ways including increasing morale and decreasing administrative tasks so professionals can actually focus on their job.

But this being a personal finance blog, I’m going to propose a financial way to help deal with burnout. And it’s pretty simple: Make enough money and have a plan for it.

Money = freedom

There are lots of ways people deal with burnout. And most of them involve escaping to something else like alcohol, food, television or medication. All valid ways to deal with stress and burnout.

Valid, but not very effective. In the end, burnout is largely due to lack of control. You can’t control your hours, your co-workers, the weather etc.

Most people also can’t usually control how much money they make. While money isn’t everything, I feel it plays a huge role in the potential for burnout.

Let’s say a doctor is being forced to work hard 80+ hours a week with very little sleep. His salary is $50,000/year. I guarantee you that doctor will start looking for the exits real soon.

How about he magically gets a raise to $500,000? He will definitely stick around that job longer despite the hard work. But he may start looking elsewhere after it just gets to be too much.

Now how about he gets a raise to $5 million? That will be the most loyal doctor you will ever see and burnout will be the farthest thing from his mind.

While this is an extreme example, it does show that if financial security is there, the risk of burnout will decrease. But we all can’t just pull a lever and make more money appear. Increasing income is a long term process that takes some trial and error. But for someone who is staring burnout in the face, time is one luxury that they don’t have.

So the focus should shift to what you can control. Specifically, how you spend your money and your overall financial plan.

Focus on what you can control

People who are stressed usually spend money to make themselves feel better. But it’s only temporary, and then you have less money. Which makes you more stressed.

So the first thing I would recommend is to find your biggest spending leak and plug it. Whether it’s eating out, drinking out or shopping, you need to cut the spending or risk facing burnout.

If you successfully do that, you will have some extra money every month. Now comes the important part: Make a plan for that money. You don’t need a full on financial plan that has retirement projections for multiple scenarios. That will come when you have more time and money.

Just make a simple goal for that money. For example, if you have an extra $200 every month, set up an automated savings plan into a Roth IRA. Or if you need some more in your emergency fund, send the money there every month.

The important thing is to do it and make it automatic. This will be a nice first step to financial independence and allow you to take back some control in your life. Which will eventually help minimize your chances of burnout at work.

Once you’re able to save more money, and hopefully make more as well, you can continue to take some more control by adding more money to your existing plan. Or you can make new goals such as saving for travel, a home or even working a little bit less.

Now that’s real control.

Burnout is Real, but not Inevitable

I have to admit, working in a corporate environment is tough. While I have thankfully never gotten to the point where I just want to walk off the job, I have experienced stressful situations which can make me wonder what I’m doing with my life.

But money can be a good motivator. And if you have a plan for your money that will eventually lead to financial independence, you will be able to tolerate a lot.

Obviously, if you are in an overly stressful and toxic environment which is affecting your health and well being, you should find an exit plan. But having a solid financial foundation will let you make the best decision for yourself and your career.

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