Getting richer makes you worse off

An increase in wealth could lead to a decline in your mental health - that's the verdict of a new study. Robert Powell finds out more...

We all know you can’t buy happiness – in fact, if recent research is to be believed an increase in wealth might actually damage our 'mental wellbeing'.

It’s all the work of Warwick Business School professor Andrew Oswald who claims that as we get richer, our psychological health actually declines.

Let’s take a look at the report...

The facts

The study states that although Britain became richer by more than 40% between 1993 and 2007, the number of common psychiatric disorders still rose. Further studies carried out across developed countries in Europe confirm the same thing – that as a county gets richer, its mental health gets worse.

Stats from Britain also show that in 2009, one-in-seven adults were known to be suffering from at least one mental disorder.

The report says a lot of this mental distress can come from unemployment but also states that the symptoms are not generally brought on by the financial impact of losing your job. In fact, 80% of a person’s measured decline in mental wellbeing after being made unemployed stems from non-financial reasons.

For more about how to cope if you lose your job read How to deal with redundancy.

Why?

So if our overall national wealth and economic prosperity is increasing, why is our mental wellbeing decreasing?

The report suggests three possible reasons:

1. The stress and complexity of modern work is putting more pressure on people than it used to.

This basically suggests that any increase in the amount of goods and services produced by a country will be accompanied by increase stress for you and me, the countries workforce. So whilst the country may prosper financially and on paper look more successful, emotionally and mentally we will all be in decline.

It’s the old live to work/work to live argument again – is it worth working a job that pays well if you’re always too miserable to appreciate the wealth?

2. The study also suggests that mental wellbeing may decline as countries get richer because we are creatures of comparison, endlessly judging ourselves against our peers. An increase in wealth will give us the means to buy something better or more expensive than our neighbour – causing a giant circular rat race to form.

It’s this never-ending desire to have the best car, flat, laptop or even job that damages mental wellbeing. This could be the reason why the most mental harm after being made unemployed does not come from losing a supply of money – as the perceived ‘shame’ of not having a job far outweighs any gaps in your finances.

3. The third reason is that an increase in wealth does not necessarily mean we buy things to make us happier and more mentally healthy. But come on, you knew that already, didn't you?

How to cope with with your finances when mentally distressed

Disagree with the findings of the report? Clearly, they are controversial, but I think it’s undeniable money does have some impact on mental wellbeing.

So what should you do if you find yourself in distress? I'm not a psychiatrist, but with the help of mental health charity Mind, I can at least give you some tips on how to keep in control of your finances throughout psychologically distressing times:

• Get some emotional and practical support. The Citizens Advice Bureau can offer free legal and financial advice. Or you could visit your GP, contact a social worker or even pop into your bank – as the ‘banking code’ means they must treat customers sympathetically.
• Take a bit of time to organise your finances. Gather together any documents with income and expenditure on. For example wage slips, rent or mortgage details, life insurance policies, P60 tax forms and bank account or card statements.
• Find out what public money you’re entitled to. There are a huge number of benefits available to help those who may not be economically strong due to poor health. For more information go to www.direct.gov.uk.
• Draw up a budget. If you’re able to, creating an income/expenditure budget will help assess your current financial situation. The Citizens Advice Bureau can again help if you’re not able to do this.
• Assess what financial products you may need. Services such as overdrafts, loans or credit cards may help you cope with your finances. But make sure you find out exactly what you need and can afford before taking anything out. There are some financial services specifically designed for those who have fluctuating incomes due to disability or poor mental health. The FSA is a good starting point when searching for financial advice. Or for more about switching financial products read Take the hassle out of switching.

For a full booklet on how to look after your finances throughout times of mental distress go to the Mind website.

What do you think?

Do you think the mental wellbeing of a country declines with wealth? Any anyway, is it really possible to measure and quantify emotional and mental wellbeing? Or are financial indicators far more accurate when judging a nation's prosperity?

For more on the possible financial future of Britain read Why you should be terrified.

Let us know your thoughts in the comment box below.

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