Sebastien Alexanderson, Head of National Debt Advisors

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 Head of National Debt Advisors Sebastien Alexanderson, who said, as we observe Mental Health Awareness Month, phenomena like “money shame” and burnout due to the “golden cuff” beckoned 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 said 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.”

Another often overlooked occurrence in the modern economy is workplace burnout and the growing trend of “golden handcuffs”. A recent global survey from Great Place to Work found that 22% of employees across 1,570 companies reported burnout. Shockingly, many of those citing burnout also described their workplaces as “great,” thanks to the financial perks that kept them bound to their jobs. A paradox Alexanderson said 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 stress 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 the situation where high-paying compensation packages—often paired with benefits like bonuses or stock options—make it difficult for professionals to leave their roles, even when they feel unfulfilled. The financial incentives are strong, but 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.”

Needless to say, this lifestyle often encompasses a build-up of mountains of debt, and research published in the BMC Public Health Scientific Journal reveals that over-indebtedness is on the rise, particularly in high-income countries, often indicating a direct 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 found that they experienced a higher prevalence of sleep problems compared to the general population,” said Alexanderson. “The study revealed that over-indebtedness significantly increased the risk of difficulties with sleep onset (adjusted odds ratio 1.79) and maintenance (adjusted odds ratio 1.45). Alarmingly, those in debt were nearly four times more likely to use sleep medications,” he said.

He offered the following tips for practicing mindful spending for the benefit of their mental health:

• Pause Before You Purchase: Take a moment to determine if a purchase is a need or a want and 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 for indulgences while prioritising your financial goals.

“Many of our clients report feeling like they have no control over their lives outside of work,” Alexanderson explains. “Their work-life balance is gone, and even though they’re earning more than they ever thought possible, they’re deeply unhappy and heavily indebted.”

“Let’s change the conversation around money,” he concludes. “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.”

ENDS