Glossary: Burnout

Burnout

In everyday terms:

Burnout is when you’ve been running on empty for too long, and now you feel completely drained—physically, mentally, and emotionally. It’s like trying to function with a phone battery stuck at 1%, where even the simplest tasks feel overwhelming, and motivation disappears. You might feel exhausted, detached, and unable to keep up with responsibilities, even things you once enjoyed.

Clinically speaking:

Burnout is a state of chronic physical and emotional exhaustion caused by prolonged stress and an overwhelming workload. It can lead to feelings of detachment, reduced motivation, and impaired functioning in daily life. Burnout is commonly associated with work-related stress but can also occur in other areas such as caregiving, academics, and personal responsibilities. Individuals with ADHD, autism, and other neurodivergent conditions may experience burnout more frequently due to the added cognitive and sensory demands of navigating a neurotypical world.

How Burnout Affects Personal Finance

Burnout can have a significant impact on financial health, as the exhaustion and emotional depletion that come with it can make it difficult to stay on top of money management tasks and long-term planning.

Neglecting Financial Responsibilities

When burnout hits, even essential tasks—such as paying bills, tracking expenses, or reviewing budgets—can feel impossible to manage. This can result in missed payments, late fees, and financial disorganization.

Impulse Spending as a Coping Mechanism

During burnout, individuals may turn to retail therapy or other forms of spending to provide temporary relief from stress and exhaustion. This can lead to financial strain and feelings of regret once the burnout phase subsides.

Loss of Income Due to Reduced Productivity

Burnout can make it difficult to perform effectively at work, leading to decreased productivity, absenteeism, or even job loss. This reduction in income can compound financial stress and create additional challenges in maintaining financial stability.

Avoidance of Financial Planning

The mental exhaustion of burnout often leads to avoiding tasks that require cognitive effort, such as budgeting or financial goal setting. This avoidance can prevent individuals from making progress toward their financial goals and create feelings of being stuck.

Increased Healthcare Costs

Burnout can take a toll on physical and mental health, leading to increased spending on healthcare, therapy, or self-care products and services. These expenses can add up quickly and impact overall financial well-being.

Burnout can make managing finances feel overwhelming, but recognizing the signs early and implementing supportive strategies—such as automating financial tasks, seeking professional help, and setting realistic goals—can help minimize its financial impact. Prioritizing self-care and balance is key to both mental and financial well-being.