3 Financial Factors That Fuel Career Misalignment Burnout
Feeling stuck in a career that drains your energy and doesn't align with your passions is a major recipe for burnout. Adding financial burdens to the mix makes it even harder to escape this draining cycle.
In this article, we'll explore 3 financial factors contributing to career misalignment burnout and what you can do to regain control.
Understanding Financial Constraints
Financial constraints are the limitations on our ability to spend, save, or invest due to a lack of financial resources. These constraints can manifest in many ways, such as high levels of debt, inadequate income, and lack of savings.
The top 3 financial stressors I want to address when it comes to career misalignment include:
High Debt: Student loans, credit card debt, and personal loans can weigh heavily on one's finances.
Living Paycheck to Paycheck: This leaves little room for savings or unexpected expenses.
Lack of Savings: Without a financial safety net, any unexpected expense can lead to significant stress.
The Financial Stress & Career Misalignment Burnout Connection
Financial worries are a significant source of stress that can severely impact work performance and mental health. According to a survey by the American Psychological Association, nearly two-thirds of adults report that money is a significant source of stress in their lives.
This stress is compounded by the feeling of being trapped in jobs that don't align with who we are or what we value, can convince us that making a successful career transition is impossible because of financial obligations.
This "trapped" feeling is known as career misalignment. It occurs when there is a disconnect between an individual's job and their skills, values, or long-term goals. This misalignment, combined with financial stress, can lead to:
Decreased Job Performance: Financial stress can cause distractions, leading to decreased productivity and efficiency.
Mental Health Issues: Anxiety, depression, and other mental health issues can arise from the constant pressure of financial worries.
Lack of Career Progression: Fear of financial instability can prevent individuals from seeking new opportunities or taking risks that could lead to more fulfilling careers.
💡Never heard of Career Misalignment? Read This
Career misalignment burnout fueled by financial constraints is a challenging issue, but it is something we can overcome with the right strategies and support.
High Debt
Debt is a financial burden that can feel like a never-ending cycle. Student loans, credit card debt, and personal loans can weigh heavily on one's finances, creating a constant pressure to meet monthly payments.
This pressure can lead to taking on jobs that don’t align with personal goals or talents, just to keep up with debt repayments. This approach is never good over the long-term as it will inevitably lead to stress, burnout and the health challenges that come along with it.
What to do about it:
Practice delayed gratification: Don't rush to spend every dime you earn. Instead, consider if each purchase is a need or a want before swiping your card. Are there free or low-cost alternatives?
Live within your means: Just because you can afford something, doesn't mean you need it. Evaluate your spending habits and prioritize financial peace over impulsive purchases.
Create a debt repayment plan: Prioritize high-interest debts and consider debt consolidation to lower monthly payments.
Paycheck to Paycheck Living
This is no way to live, yet many Americans find themselves one paycheck away from financial ruin. It leaves little room for unexpected expenses. This financial instability can make it seem impossible to take risks, such as pursuing a career change or starting a business.
What to do about it:
Tracking your expenses: Use apps or spreadsheets to track your spending and identify areas to cut back. I personally like Ramit Sethi's Conscious Spending Plan.
Increase your income: Look for side-hustle opportunities, such as freelancing, part-time gigs, or monetizing a hobby. I dedicated an entire chapter in my book, Empowered to Upgrade: The Ultimate Blueprint for Taking Control of Your Career With Confidence, on side hustle ideas. Check it out for inspiration.
Research your options: Explore different career paths and their salary ranges. I personally like onetonline.org and bls.gov Talk to people in your fields of interest to get a realistic picture of what it is like in that role. This is exactly what I did to transition from call center customer service to Instructional Design, which paid much more. I wrote about the experience in my book.
Build Your Network: Attend industry events, connect with people on LinkedIn, and let your network know you're open to new opportunities.
Start Small: If a complete career change feels overwhelming, consider internal transfers or upskilling in your current field to find a better fit.
Lack of Savings
The rising cost of living, including housing, healthcare, and education, puts additional strain on our finances. This can make it difficult to leave a high-paying yet unfulfilling job for one that aligns with your aspirations.
Not only that, without an emergency fund or retirement savings, unexpected expenses can lead to significant stress and financial hardship. This lack of a financial safety net can trap you in a job you dislike or force you to work beyond the age you wanted. The good news is there are proactive steps you can take.
What to do about it:
Build a savings habit: Start small by saving a fixed amount each month, gradually increasing as you can afford it. Aim to save 3-6 months' worth of living expenses.
Automate your saving: The less you have to think about it, the more likely you can stick to it. Set up automatic transfers to a dedicated savings account. Treat your saving deposits as a non-negotiable monthly expense.
Determine how much you will need in retirement: You can use this calculator. Talking to a financial professional can also help you create a personalized plan to reach your goals, even with a career change. As a licensed financial professional, I'm available to help. Feel free to schedule a time to chat if you need more guidance.
Final Thoughts
Financial stress is a significant contributor to career misalignment burnout. By understanding and addressing high debt levels, living paycheck to paycheck, and a lack of savings, you can take control of your finances and pave the way for a more fulfilling career.
Start with small steps, stay committed to your goals, and remember that progress is a journey, not a destination. With the right strategies and support, you can break free from financial constraints and build a career that truly aligns with your passions and values.