Georgia is a person of resilience and determination, both with her dreams and goals, and her emotions. Supporting a family of 5, financial success carried paramount weight for her. Regardless of how much she worked or how tired she was, she kept going. But one thing that seemed to be in her way was letting bad days takeover everything she was doing. Whether it be her behaviour at work or at home, a single unforeseen negative outcome was enough to develop an inner monster that would control everything she felt and did for the rest of the day. But she simply did not have enough time to address this recurring issue. She tried forcing herself to remain happy, ignoring all the negative circumstances.  

That didn’t work either.

Georgia is not alone in her experience. Our emotions can play a substantial role in our behaviour and actions. But only if we let it. Nowadays, positive emotions are considered to be the opposite of negative emotions. Wherever we want to escape reality, we cope by overshadowing the sorrow and pain of reality with an excessive amount of positivity – similar to a drug. It might simply be human nature to have the desire to feel happy in the midst of stress and confusion after all. However, forcing positivity is not the answer to this problem in the case where the problem lies in your strong emotions affecting your behaviours. As simple as balancing an old fashioned scale with two things on both sides, a balance can also be maintained when making decisions between emotions and logic, in addition to preserving emotional stability. The key aspect of this equilibrium can be achieved by practising mindfulness and emotional neutrality.

Mindfulness is an attainable quality of being fully aware of what you are feeling in the moment.¹ In this fast-paced lifestyle we live in, it can be difficult acknowledge your emotions without judgement or criticism.² However, this quality can help establish a link between your emotions and your reason without either of them affecting the other. This provides an outlook in life that is more than surviving, rather for flourishing and growing.³ On the other hand, emotional neutrality is the process of removing polarising emotions from the financial decision making realm. It allows us to use the skill of mindfulness to discern our emotions from our logic in order to prevent our emotions from hijacking the decision making process and turning a blind eye to reality. By getting in touch with our emotions through mindfulness, we can practice emotional neutrality which lets us face our troubles without bias created by a skewed view of reality.

However, this should not be confused with the stigma around money that our emotions are insignificant in any aspect of risk management. Our emotions are a unique dataset that gives us insights on how we perceive our reality. Although it is crucial to distinguish that they are not a reflection of reality, it still is an important indicator of where you are mentally. For some, financial decisions can bring out anxious and stressful thoughts more than others. Rather than brushing them off and ignoring them as something “subjective”, you can use it as a starting point as to why it is demanding and where those emotions are coming from – it allows us to dig down to the roots to identify the original source of the problem. By doing so, the need of creating a false reality diminishes to the point where you don’t have to be scared of feeling something and affecting you uncontrollably.

Going back to Georgia, we see that she tried to compensate her sadness and struggles with false happiness. We now know how that is a Band-Aid solution without a permanent benefit. It is good to feel the ups, but it is important to feel the lows to know where you stand. Because without the ocean full of emotions, the ship won’t sail.

References:

1. 1. Mayo Foundation for Medical Education and Research. (2020, September 15). Can mindfulness exercises help me? Mayo Clinic. Retrieved March 14, 2022, from https://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/mindfulness-exercises/art-20046356
   2. KOREN, A. D. A. M., & MARKLE, E. L. I. Z. A. B. E. T. H. (2022, January 14). 4 ways to bring mindfulness to your money habits. Mindful. Retrieved March 14, 2022, from https://www.mindful.org/4-ways-to-bring-mindfulness-to-your-money-habits/
   3. Sutton, J. (2021, December 7). The importance of mindfulness: 20+ reasons to practice mindfulness. PositivePsychology.com. Retrieved March 14, 2022, from https://positivepsychology.com/importance-of-mindfulness/

Work Culture: The Dark Side 

Despite the constant reminder of prioritizing mental health over productivity and efficiency at work, there seems to be a barrier between understanding the concept and applying it to real life. Regardless of what the job is, workplace culture has an enormous effect on the worker’s wellbeing within and outside the organization. While personal values and beliefs definitely play a role in determining the atmosphere of the environment, there are societal and cultural influence that are strong and major when it comes to affecting the work culture beyond personal preferences and beliefs.  Societal and cultural expectations and values, whether they are good for one’s mental health or not, can have a big impact as that may be where the worker’s values and beliefs stem from, in addition to being one of the foundations of these organizations. As cultural values are ingrained in society, it can add to the difficulty of shifting one’s mentality around working, despite some of the negative consequences.

Interesting thing about culture is that while there is no rule book or a manual that is religiously followed, there are evident similarities and differences between cultures that manifest into certain values and beliefs grouped together and transcend through different aspects of society, such as the work force, education system, and many more. We can also look at our identity, including establishment of our own values and beliefs, through the lens of culture and come to the realization that these cultural norms help build the basis of our narrative. Since we are the ones working in the community, these values and beliefs shape the organization and network. Workaholism, which is also known as work addiction, can definitely be affected by the nature of the community.

Priorities surrounding work ethic differs between societies. Today, we will look at America, Russia, and Japan. In the United States, for example, Work Confidence Survey reported that nearly 40% of workers report a lack of time for their personal lives.1 Additionally, Bryan Robinson, an American psychotherapist, questions why mental health and efficacy in work is considered mutually exclusive when it is completely possible to coexist.¹ With the continuous rise of dissatisfaction towards working environments, it may become more evident that lack of health, whether it be physical or mental, support is one of the leading reasons for it. On the other hand, the Russian work ethic takes a different turn. Experiences during the Soviet continue to have an influence on the workers today.² A saying that is at the bottom of all this Russian work ethic is as follows: “initiative is punishable”. Under the communist regime, individual dynamics and incentive was chastised, and this mentality is still deeply rooted in the form of collectivism where workers try to finish the task with least effort.² This is quite different from the Japanese work ethic where Japanese workers thrive on working together as teams. Many of them seek approval from their superiors prior to important and significant commitments made.³ The group mentality is much more prominent than focusing on individual workers, which is what the American work ethic adopts.

Throughout this comparison, we see that various culture embrace a variety of work ethics that tends to be consistent among communities. As someone who has lived in two different countries with another cultural background, it is evident that the work ethics and the mentality of the workers differ drastically. It can also be taxing to adapt from one environment to another as these work cultures are shaped by and will shape one’s beliefs and values that one carries for a long time.

While our values and belief shape our behaviour, our emotions are at the foundation of that. It is a means by which to understand our inner state. Acknowledging the data that we have curated ourselves can help mitigate the negative mindset we may have towards work. Feeling trapped at work can physically, emotionally, and financially drain you without even realizing. Understanding one’s cultural heritage can aid in:

• Introspection regarding work – life balance
• Taking advantage of an already existing framework to make financial decisions that are aligned with your true values and beliefs
• Realizing any positive/toxic work cultures that may be beneficial / detrimental for you and act upon it

Culture is a part of us and should not be ashamed of it. It can open your eyes to more views, perspectives, and values that you may not have considered and widen your horizon to make better and smarter decisions emotionally, and financially.

1. Robinson, B. (2019, October 21). The turbulent and TOXIC state of the Nation’s Work Culture: What you absolutely must know and do. Forbes. Retrieved September 28, 2021, from https://www.forbes.com/sites/bryanrobinson/2019/10/21/the-turbulent-and-toxic-state-of-the-nations-work-culture-what-you-absolutely-must-know-and-do/?sh=1c14934b4564.
2. Новые известия(en). (2021, August 19). Work is not A WOLF… how the Russian work Ethic differs from western and Japanese. en.newizv.ru. Retrieved September 28, 2021, from https://en.newizv.ru/article/general/19-08-2021/work-is-not-a-wolf-how-the-russian-work-ethic-differs-from-western-and-japanese.
3. Merchant, Y. S. (2018, April 5). 5 major differences between Japanese and American workplaces. Business Insider. Retrieved September 28, 2021, from https://www.businessinsider.com/differences-between-japanese-and-american-work-culture-2018-3#japanese-workplaces-are-more-formal-1.

As we enter August and approach Labor day in September, it serves as a reminder for all of us that another school year is starting. Whether it be for a worker, student, or parent, it can act as a transitional time period where it is a new beginning. However, this year’s “back to school” era is a little different for all. After a whole year and a half of the pandemic, many experienced major changes, psychologically and financially. In many countries including the United States and Canada, industries are aiming for the following year to be close to where we used to be, or almost “back to normal”. However, we are all aware of all the adjustments we have made and continue to make to tackle the pandemic. Despite its positive connotation of society’s return to its past state, we are continuously reminded of the losses and the changes of the past year. With an altered mindset due to the urgent need to readjust to a new reality, this year’s “back to school” season will look different.

In the U.S., the unemployment rate rose from 3.8% in February of 2020 to 13.0% in May of 2020.1 Internationally, the pandemic provoked the loss of 225 million jobs. Many people experienced an unprecedented loss of jobs and income. A financially and psychologically traumatic incidence in addition to the already existing pandemic which is extremely distressful on its own. A study by Griffiths reported an association of poor mental and physical health with job loss during the pandemic.2 This trend can be credited to the lack of social interactions and also a decrease in financial assets. It is quite frightening to see the number of people whose life was flipped upside down int he matter of days. Additionally, some have been able to work from home for the past year and a half and this return to normalcy can induce a different kind of stress. While working from home was an adjustment in itself, returning to an office is also another adaptation that can be uncomfortable for some workers.3 However, the fear of financial instability is another strong and prevalent factor that one cannot ignore, especially after the past year.

Similar to these workers, students at all levels have encountered various obstacles due to the pandemic. For students, socialization is critical for their development, especially at young ages. For post-secondary students, as student debt was already a recurring issue for many, the pandemic had an adverse effect on their sense of financial security. According to a survey conducted by Temple University, one out of three students had lost their job due to the pandemic.4 Additionally, the 2020 College Student Financial Survey reported that approximately 13.3 million undergraduate students disclosed that the pandemic has changed their outlook on their financial status in the future.5 While the excitement of being able to return to in-person classes and resume a semblance of normalcy is immense, the financial stress can be a large factor in their decision-making. Maintaining a balance between the excitement of returning to a social realm and money issues that have accumulated over the past year would be crucial in establishing a healthy relationship with money.

What does this mean to all of us?

This means that regardless of where you are in life, there is a level of adjustment we must go through. The psychological damage that has been done over the past year can translate into financial stress, especially during this transitional season. While some men think that forgetting what happened in the past year and a half is the best solution, that is unfeasible and would also not be as helpful as we think. Learning from what we have gone through individually and as a society can help us acknowledge and understand the emotional trauma from the past and manage financial behavior in the future. Strategies such as:

⦁ Acknowledge the experiences in the past and do not underplay it
⦁ Fully be aware of the changes that may come your way as much as possible

There is no way to predict all the emotional turmoil that this new transition can bring, psychologically and financially. However, the unfamiliarity and uncertainty of money decisions are bound to happen for all. It is crucial to accept the emotions surrounding these decisions before shutting them out and just solely focusing on the quantitative aspect of money. Welcome to back to school, but more like back to the new normal.

⦁ Kochhar, R. (2020, August 26). Unemployment rose higher in three months of COVID-19 than it did in two years of the Great Recession. Pew Research Center.

https://www.pewresearch.org/fact-tank/2020/06/11/unemployment-rose-higher-in-three-months-of-covid-19-than-it-did-in-two-years-of-the-great-recession/.

⦁ Griffiths, D., Sheehan, L., van Vreden, C., Petrie, D., Grant, G., Whiteford, P., R Sim, M., & Collie, A. (2020). The impact of work loss on mental and physical health during the Covid-19 pandemic: Findings from a prospective cohort study. Journal of Occupational Rehabilitation, 31, 455–462.

https://doi.org/10.1101/2020.09.06.20189514

⦁ Caine, P. (2021, March 11). After a year of remote life, new anxiety emerges: Returning to work. WTTW News.

https://news.wttw.com/2021/03/11/after-year-remote-life-new-anxiety-emerges-returning-work.

⦁ Saul, S. (2021, April 1). For many college students, pandemic life is disappointing. for others, it is a financial crisis. The New York Times.

https://www.nytimes.com/2021/03/30/world/college-students-economic-struggle.html.

⦁ Dickler, J. (2020, August 31). Due to PANDEMIC, more than 13 million college students are worried about their financial future: Study. CNBC.

https://www.cnbc.com/2020/08/31/majority-of-college-students-are-worried-about-money-due-to-covid-19.html.

The link between money and value has been well established by the field of economics. But correlation of money and personal value as a function of self-esteem and self-worth has largely remained unexplored. In North America, one of the leading capitalist society in the world, economic and financial values are tied to the worth of an individual, despite the multitude of qualities that person may possess. Since the late 1900’s, the American economic expansion has resulted in the current system, where accumulation of wealth is synonymous with process and growth.1 If history has shown us anything, it is that rendering humans to a series of numbers is anything but good. By understanding how money can be used judiciously, we can begin to reassociate the pricelessness of individuality to human value. This can help us understand that financial independence can be achieved without having countless streams of incomes, or having the status of a billionaire. We can contextualize what financial independence means by looking at the aspects of money that relate to each of our unique experiences. In other words, how much is enough for each of us, individually.

Financial independence can mean one has enough wealth to live comfortably without working for the rest of their life.2 That is the meaning of independence from a purely wealth-based point of view; how much money one has accumulated. However, it can also represent one’s ability to manage their money well, allowing them to live a relatively comfortable life. This psychological perspective takes into account one’s spending habits, cultural narrative, socio-economic factors, and many more layers, demonstrating that independence can be achieved without tons of money. We will be focusing on the latter standpoint of financial independence.

Spending and earning are the baselines of managing one’s finances. As people start working, they understand the value of money by earning independently as well as spending a set amount on their needs and wants. Establishing a healthy financial habit does not only encompass the significance of earning, but it also emphasizes how keeping spending under control is a preventative measure for looming financial trauma. Financial well-being does not have to revolve around a minimalist lifestyle. It is a balance to be established around your necessities, as well as one’s physical and emotional health. Therefore, one’s financial independence is unique to each person’s situation. For instance, when comparing a student to an entrepreneur, financial independence will look different for each, seeing that their priorities and financial status are unalike to say the least. While the mentality of success might be present in both cases, spending money on traditional education, in this case, is a cost that an entrepreneur would not think of. Conversely, the student is not burdened by the need to reinvest into their business even at the expense of one’s own financial independence. The earning capacity of a student varies from what an entrepreneur can earn. Cultural backgrounds and upbringing also affect one’s outlook on their definition of financial success and independence. Knowing that a financially fulfilling and sufficient lifestyle is unique to each individual is crucial in managing their spending.

For many, financial independence as described above is feasible. However, changing certain habits throughout this personal journey can be the most challenging aspect of attaining financial independence. Change in behaviour is quite complex due to the unfamiliarity when implementing a new set of habits.3 Scientifically, once a neuronal pattern of firing has been formed with a set of habits, it is then ingrained in our brain. Difficulty of breaking financial habits comes with psychological pressure we put on ourselves in order to make changes in our behaviour.4 The result is negative emotional experience accompanied by self-judgement, guilt, perfectionism and fear. Moreover, acknowledging and learning how to tackle the obstacles that come our way during this change is also important when trying to improve one’s financial habits.4 When we face a hurdle in this process, our internal critique come out to label these unwanted behaviours as lazy or stubborn.4 However, it is in these exact moments that self-care, self-reflection, and problem-solving skills are required, to get through the impasse. It is not necessarily perfection that can establish a healthy relationship with money, rather starting with small changes in order to create a habit that is conducive to one’s lifestyle.

Overspending and underspending are financial behaviours that many partake in despite its potential damage to one’s financial, mental, and physical health. In many cases, these behaviours mask the true source of these actions, such as stress, psychological pain, or trauma. Adopting a new habit not only tackles the superficial problem of spending too much or too little, but it also addresses the psychological source of the behaviour. Understanding the “why” behind this new habit will make it a lot easier to continue managing and implementing these new actions and not do them mindlessly.

When do you know you are financially independent?

If you are solely looking at the number, it is quite simple to see if you can maintain a comfortable lifestyle with the current saving. However, from a psychological perspective, financial independence is not a moment or a day. It is a continuous action, a lifestyle, to build a healthy relationship with money in ways that you are in control.

– Acknowledging bad financial habits and replacing them with good ones
– Separate money from your worth
– Know what is financially enough for you
– Stop comparing yourself to others

These are a few pointers to start us all on our way to financial independence. Our inclination of using money as a measure of growth and self-worth is embedded in our society. Neglecting the importance and power of money will not do us any good. It’s weight, however, should never exceed one’s worth nor ability to think for oneself.
1. Cook, E. (2017, October 20). How Money Became the Measure of Everything. The Atlantic. https://www.theatlantic.com/business/archive/2017/10/money-measure-everything-pricing-progress/543345/.
2. Probasco, J. (2021, July 1). Declare Your Own Financial Independence Day. Investopedia. https://www.investopedia.com/financial-edge/0611/declare-your-own-financial-independence-day.aspx.
3. Call, M. (n.d.). Why is Behavior Change So Hard? https://accelerate.uofuhealth.utah.edu/resilience/why-is-behavior-change-so-hard.
4. Jaffe, A. (n.d.). Why Is It So Hard to Change Bad Habits?Adi Jaffe Ph.D. Psychology Today. https://www.psychologytoday.com/ca/blog/all-about-addiction/201903/why-is-it-so-hard-change-bad-habits.