More recent research shows that wealth can also cloud moral judgement; several studies report that being rich distorts empathy and compassion. Perhaps being rich isn't such a coup after all? Evidence suggests that wealthy people are disproportionately affected by addiction.
Adjustment Issues Can Stem from Wealth.
Their problem-solving skills may be limited to paying for a solution rather than coming up with one on their own. This is an example of how wealth affects mental health and their ability to adjust to difficulties in social settings, at school or work, and in their communities.
Rates of depression, serious mental illness, and suicide (not to mention nearly every physical illness and injury) worsen with increased poverty and deprivation in a very clear dose-response relationship – the more the exposure, the worse the outcomes.
Also, financially successful people like CEOs and high-powered attorneys may experience high rates of depression because they work long hours and sleep less. They may also feel the need to meet high expectations. “Being extremely wealthy can also cause feelings of disconnection,” Marcum says.
Extreme wealth, especially when it comes very suddenly, can leave people feeling detached from themselves, or as if they don't quite know how to identify themselves any more. “Sometimes there are conflicts about felt identity,” says Essig.
In addition to those well-documented costs, it turns out that the poor not only experience more stress than the rich on a daily basis, but it is also more likely to be “bad” stress, which can have long-term effects on the ability to plan for and invest in the future.
While all wealthy individuals can experience Mental Health Conditions, entrepreneurs, business owners, and other elite professionals are at greater risk of depression, Anxiety Disorders, and other Mental Health Disorders.
Studies show that anxiety suffered by children in wealthy families is 20-30% higher than it is among the less affluent, and that affluent kids are more prone to substance and alcohol abuse. There is often a heavy price to pay for affluence.
For one, it often puts you in different social circles, and it might mean you spend less time with certain friends because they don't have the means to enjoy a similar lifestyle. That can lead to feelings of guilt or loneliness. Plus, Norlander said wealth often magnifies the character of the person.
Finances are a huge stressor for many, and if you want to make mental health a priority, alleviating some of the anxiety surrounding money management is a good place to start. 42% of U.S adults say money is negatively impacting their mental health, according to a recent survey from Bankrate and Psych Central.
Mental Health is mental wealth! Too much attention is focused on mental illness and not enough focused on our mental health. Evidence shows that good mental health supports good physical health, better immune function, healthier relationships, and overall life satisfaction.
Inequalities in society are associated with a significant increased risk of mental ill health. Poverty is a key player. People in poverty can face constant, high levels of stress, for example due to struggling to make ends meet, overcrowded or unsafe housing, fear of crime, and comparatively poor physical health.
Poorer communities are more frequently exposed to risk factors for psychological distress and mental disorders such as violence, crime, social conflict, civil unrest, homelessness and unemployment.
Children growing up in wealthy families may seem to have it all, but having it all may come at a high cost. Wealthier children tend to be more distressed than lower-income kids, and are at high risk for anxiety, depression, substance abuse, eating disorders, cheating, and stealing.
Wealth and High Self-Esteem
Associating wealth and money with self-esteem can be problematic for a number of reasons. Firstly, if you choose to pursue wealth in the name of self-esteem, you may make decisions in life that don't align with your authentic passions, values, and goals.
In conclusion, wealth and health are both important and interrelated. While wealth can provide security and opportunities, good health is essential for enjoying those opportunities and living a fulfilling life.
Once you hit an annual household income of $75,000 (£62,000), earning more money didn't make you any happier. In 2021, the happiness researcher Matthew Killingsworth released a dissenting study, showing that happiness increased with income and there wasn't evidence of a plateau.
The 2010 study found that money could only boost happiness up to a point — about $75,000 in annual earnings. Beyond that figure, the researchers concluded, money had little impact.
Money, it seems, can't buy everything. In fact, new research shows that richer and poorer people are generally as happy as each other. Where they differ is in their level of sadness: higher-income individuals are markedly less sad on a daily basis.
In particular, if you're not careful, money may start to change your identity or sense of self. Having a lot of money can influence the way you think about yourself. It can change your sense of morality, and it can even have an impact on your relationships with other people.
Key Takeaways. Sudden Wealth Syndrome (SDS) refers to a psychological condition or an identity crisis in individuals who have become suddenly wealthy. Sudden Wealth Syndrome is characterized by isolation from former friends, guilt over their change in circumstances, and extreme fear of losing their money.
The five personality traits that are particularly standout are: risk-taking, emotional stability, openness, extraversion and conscientiousness.
Millionaires take personal responsibility, practice intentionality, are goal-oriented, and work hard, according to Hogan. While those are qualities of many people, regardless of net worth, millionaires recognize that these traits can't work together without consistency, he said.
Money may create some of those feelings, but wealth also frequently causes anxiety and pressure to make good financial decisions about how it is invested, spent, gifted, or used to create a legacy. Below are the main reasons high net worth households worry about money and a few insights about what to do about it.