How Burnout Hurt My Bank Account -- and How I Got Back on Track

Burnout can be devastating. As increasing numbers of Americans know, it goes far beyond stress or feeling tired at the end of the week. According to a recent report from Aflac, 59% of American workers face at least moderate levels of burnout.

So, what is burnout? The WHO categorizes it as a "syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed." At its worst, it's extreme exhaustion that makes it hard to get to the office, never mind get anything done when you get there. Sadly, on top of the physical and emotional impact of burnout, there's often a financial one, too.

How burnout hurt my finances

Twenty years ago, I worked in offices where it was normal to have to pull 20-hour days or work through the night to get the job done. That is no longer acceptable in many of today's workplaces. Unfortunately, I haven't shaken those unhelpful work habits, even after what I now know were several bouts of burnout during my career.

Here are three of the ways burnout hurt my finances.

1. Reduced income: As a freelancer, there's a direct connection between the amount I work and the amount I get paid. Periods of burnout mean less -- sometimes even no -- money coming in. Most recently, I calculated about $6,000 in lost income because of exhaustion. If you have a salaried job, burnout can still impact your earnings, though it's harder to put a dollar amount on it. You might miss the promotion you wanted or find it harder to negotiate a raise. You may also need to take unpaid leave or work reduced hours to recover.
2. Overspending: Two of my worst money habits come through when I'm tired and stressed: I spend a lot more on conveniences like takeouts and taxis, and I stress-shop online for things I don't really need. As a personal finance writer, I know that a reduction in income means it's time to put the brakes on my spending. But knowing and doing are two very different things.
3. Ignoring my finances: It isn't easy to admit, but when you're so tired you can barely make a cup of coffee, logging into your online banking account often gets pushed to a tomorrow that never arrives. Ignoring my credit card balance for six months cost me around $400 in interest. It's hard to put a price tag on other types of financial neglect, such as periods of time where I didn't keep up with my investment contributions.

How I got back on track

If a lot of the text above had you googling "burnout" because you felt it described what you've been going through, it may be worth getting medical advice. It could be burnout, but there may also be an undiagnosed health issue that's behind it. A doctor may also be able to help you recover and tell you what support is available.

Sadly, that recovery will take time. It isn't going to get magically fixed with a few days of vacation and a couple nights of good sleep. One study from the University of Montreal suggested it could take one to three years to put burnout behind you. It often involves making serious changes to the way you work, or even a career change.

Take it slowly

Resist the temptation to dive straight back in and work extra hours to make up for any financial deficits. My first instinct when I looked at the missed deadlines and thousands of dollars of lost earnings was to cancel all my social activities to work nights and weekends so I could catch up. That made things worse. The brain fog descended again, and I fell even further behind.

Give yourself time to rebuild your bank account balance. Try to accept that you can't fix everything by working more hours, and look for other solutions. For example, I talked to my boss about the work I'd fallen behind on and agreed to new deadlines. I implemented a strict work and sleep schedule, which eventually resulted in fewer -- more productive -- hours at my desk. Financially, I sold or returned some of my unnecessary internet purchases.

Make a plan

I am a big fan of planning, particularly when faced with something that seems impossible. As soon as I felt able, I sat down with my recent bank statements and did a complete overhaul of my budget so that it reflected my situation.

I wanted to factor in:

• A period of lower earnings: Being realistic, I couldn't expect to work as much while I recovered. I needed to significantly reduce my costs so that I could live within my means. That meant canceling subscriptions, cutting my takeout expenditure, and planning low-cost ways to relax and socialize.
• Rebuild my emergency fund: The point of an emergency fund is to get you through periods of reduced income or health issues. But once I started to get back on track with work, I needed to replace that money. I transferred 10% of my paycheck to my savings account until I had six months' worth of living expenses again.
• Credit card repayments: Dipping into my savings meant I hadn't taken on huge amounts of credit card debt. Nonetheless, I wanted to pay down the balance. I stopped using it and put another 10% of my paycheck toward paying it off.

Once I'd topped up my emergency fund and paid down my debt, I switched my attention to my retirement account. One of the keys to saving for old age is to make regular contributions over a period of time. But I couldn't balance a reduced income and my savings and my debt repayments and my investments. Rather than setting myself up to fail, I prioritized the more urgent issues. Everybody's situation is different, but for me, that made the most sense.

Main takeaway

If you've been struggling with burnout, it can feel as if there's no way through. But there are always options, even if you can't see them right now. Start by talking to someone, whether that's a colleague, friend, employer, or medical professional. When you start to get back on track, look for ways to recover financially as well.