Work Addiction and The Golden Handcuffs - How Money Works

i love the smell of commerce in the morning  what's the difference between a workaholic   and someone who who works hard uh you know a  workaholic is someone who has to compulsively   who can't not work who feels very uncomfortable  at any point where they're not and who has   difficulty you know relaxing and it affects  the parts of their lives that aren't about work if our survey found that 87 of people put more  energy into work than their personal lives let me   know when your whole life goes up in smoke always  it's time for a promotion it's wednesday everybody   works on wednesday okay can i borrow your hey  what would you do if you had a million dollars   if you are anything like my personal hero peter  gibbons you would choose to do nothing at all   you would sleep in go fishing and watch kung fu  movies all day this attitude is apparently less   popular than you might imagine with new studies  finding that most high income earners are choosing   to stay in their jobs well after they have made  enough money to fund their desired retirement   but why in a time when most american  workers can't even reasonably hope to retire   why would people with the option to live a life  their peers could only dream of choose not to this   is america pick a job and then become the person  that does it you all know that i hate dragging out   the answer to a question just for the sake of  watch time so the simple truth is that people   are both addicted to their work and feel as if  they can't leave and i could work here for years years years why they feel this way is still a bit of  a mystery but looking at some of the leading   theories tells us a concerning story about how  modern careers are making even the most secure   workers feel very uneasy about their futures  so it's time to learn how money works which   was sponsored this week by aura our lives in the  modern world are lived through online accounts   if someone got access to your email just for a  few hours they could access your bank details   personal files business accounts and the contact  information for all your friends and family by   the time this happens it's already too late  from first-hand experience working in banking   i can tell you that victims of this type of  breach can still have difficulties doing things   as simple as opening a credit card years after  the breach occurred you probably already know   the importance of having multiple strong  passwords using a vpn installing a robust   anti-virus system and updating all these measures  regularly but who honestly does all of that   i have a hard time remembering my emails let alone  dozens of new passwords every month i thought this   was good enough until i started using aura's  monitoring system to find out how many times   my online accounts had been compromised on the  dark web mine had been compromised seven times   i encourage you to do the same by trying out aura  for yourself and getting all the systems you know   you really should have all with one convenient  service protect yourself from america's fastest   growing crime and get a free 14-day trial  when you sign up at aura.com forward slash   how money works the first and simplest reason  high-income american workers are stuck in   their jobs is simply because they are no more  financially secure than people on lower incomes   why is it so hard to just enjoy things a joint  report by industrypublicationpayments.com   and lending club found that more than a  third of households earning over 250 000   per year dedicate nearly all of their income to  household expenses and would not be able to cover   basic necessities if they had skipped just one  paycheck the report found that 55 of millennials   in these high-income jobs were struggling mainly  because they were focused in high cost of living   areas but even older high-income earners were not  immune from spending their money as quickly as   it came in if you can't afford to quit your  job you can't quit your job simple as that   i love my job i love my job i love my job you are  watching a business and finance channel on youtube   a website where you could literally be watching  anything else so i probably don't need to tell you   how bad of a situation living paycheck to paycheck  can be beyond the financial insecurity that comes   with not being able to cover surprise expenses  it can also seriously hamper your career progress   high income earners earn their high incomes  because they have a rare set of skills that   businesses are willing to pay a lot of money for  sometimes these skills can be so in demand that   businesses are willing to compete against one  another for each other's employees if a high   income earner living paycheck to paycheck gets  offered an even better job that requires downtime   between leaving in their existing job they may end  up needing to turn it down or at the very least   take on debt further cementing their dependence  on their job there is a great clip in the movie   margin call where a trading floor manager  reveals how he spends his two and a half   million dollar salary will did you really  make two and a half million last year uh sure how did you spend it all that was quite quickly  you learn to spend what you have in your pocket i   have personally worked with vps and md's that have  earned this kind of money that this scene was not   a work of fiction even people that you would  expect to be really good with money seeing as   how it's their entire career can spend it on the  stupidest [ __ ] alright maybe i have been a bit   unfair so far people living paycheck to paycheck  are not really addicted to work any more than they   are addicted to breathing they do it because they  just need to i've had some experience with this   they look like they could fly and it's not  about the paycheck it's about respect it's   about looking in the mirror and knowing that  you've done something valuable with your day   and yes all of these high-income earners who are  broke could make some changes to put themselves   in a much better financial position but they are  adults and how they live their life is up to them   if anything they are addicted to spending  not to working all the drugs under god's blue   heaven there is one that is my absolute  favorite and i'm not talking about this   i'm talking about this the people who are addicted  to their jobs fall into one of three categories   the first are people that just love what  they do they work in a field that they find   very interesting and are normally surrounded by  like-minded people the engineers on a formula one   team are paid very well but i am sure that there  are some of them there that would do it for free   just because of how exciting they find the  lifestyle that comes with working in this kind of   environment good for these guys if they can find  jobs like this and not turn it into something they   end up hating watch my video on why you actually  want a really boring job to see what i mean   the second type of person who is addicted to  their job normally does not enjoy it nearly   as much as the first person these are the  people who have worked and studied hard their   entire life to get themselves a prestigious  position in their chosen field life is this   i like this these are your doctors lawyers  engineers and senior management types these   people have sacrificed so much to get to where  they are that their career has become their life   their only friends are their colleagues they  don't see their family as often as they should   and they certainly don't have time for regular  hobbies the only place in life that they have   in order is their career and the only place  they ever get positive feedback is at work   for some people their work is their entire  identity and simultaneously the most interesting   thing about them you can be a remarkably boring  person but people will still give you a lot of   respect if you tell them you are a doctor or a  c-suite executive at a big company humans are   ultimately praise driven beings if you are seen  as a big swinging dick at work everybody praises   your efforts gives you respect and lets you guide  projects it can be very hard to give that up just   to go back and mend the other parts of your life  that you have neglected to focus on your career   the saddest part of this is that these people  might hate what they do but they do it anyways   because it's much easier to justify a very  unhealthy lifestyle if you are making lots of   money the third type of person addicted to their  work might also not really enjoy what they do   but they won't have necessarily neglected the  other parts of their life they are instead   addicted to their work because the companies they  work for have intentionally set them up to be   golden handcuffs is a phrase that is all too  familiar amongst high-income earners in corporate   america top talent is quite rare and hard to  find it is also expensive most senior executives   and advanced specialists are not performing at  their best for six to 12 months after starting   with a new company it takes time to learn new  systems new names new projects and a new culture   this is a problem because most people at the  top of their careers will know that long term   it is financially much more rewarding to change  jobs every two years companies do not want to pay   people like this for 12 months of training just  for them to jump ship as soon as they get a better   offer so they set up incentives for them to stay  this mostly comes in the form of deferred payments   or bonuses that are only received for work done  some number of months in the past a high income   earner will always get their base salary but  bonuses in certain roles can be as much as four   times that base pay a great deal for you if you  can land this type of job and perform well in it   the only catch is that these bonuses are  paid out to you at some point in the future   if you quit before that time you get nothing of  course the sinister part of this is that by the   time you have worked long enough to get your bonus  from your first year on the job you will have two   more years of bonuses in the pipeline that you  will be eligible for in another two years time   it is very easy to get stuck on an endless career  treadmill chasing a carrot that is always a few   months away companies have other tricks to keep  their top employees around and this can often lead   to people working in jobs that they hate working  jobs we hate so we can buy [ __ ] we don't need   even if they don't need to just because they would  feel silly quitting now and leaving a bunch of   money on the table people in certain finance  communities call this one more year syndrome   as in one more year i will get that big bonus one  more year and i will be able to afford a vacation   home in retirement one more year and i can fly  business class on all of my retirement vacations   one more year and i will have a bit  more financial security in retirement   there will always be reason to work just one more  year even for those people that do not really need   the money to support themselves anymore one more  year quickly becomes a decade that could have   been spent enjoying the lifestyle that they have  worked so hard to achieve the golden handcuffs   can sometimes be self-inflicted as well how do  they feel tremendous a lot of very highly paid   jobs are extremely specialized there are only a  few dozen engineers in the world that can oversee   deep sea oil drilling projects and their work  depends on them constantly keeping up to date   with the latest drilling techniques and industry  standards these people are paid extremely well but   if they ever quit their skills will quickly become  obsolete and they will find it almost impossible   to secure a role like they had before for people  like this there is no trial run at retirement   there is no taking a year off to relax  or try out a new business they need to   be committed to their career until the day that  they step away money can solve a lot of problems   but unfortunately for many it can't solve the  problems of being stuck in a job that you hate   although maybe they should feel lucky that their  companies value them enough to literally trap   them into their jobs because for everybody else  companies have stopped caring about how long they   stick around go and watch my other video to find  out how staff loyalty something that companies use   to prize has quickly become something that they  hate and how you can use this to your advantage   in your own career a special thanks again to aura  for sponsoring this video and making it possible   for everybody to keep on learning how money  works what are you walking with 40. i'm broke

Channel: How Money Works

Views: 400,441

Keywords: work addiction, middle income millionaire, high income broke, paycheck to paycheck, career, top paid jobs, how money works, overwork, highest paying jobs, early retirement, 40 hour work week, hardest jobs, business management, unemployment, career planning, how to retire, personal finance, best paid jobs, business, management, financial management, project management, ceo, small business, top ceo, bad manager, bull jobs, working, finance, wage vs salary, work from home, easy job

Id: nv4bdM54Ec0

Length: 12min 2sec (722 seconds)

Published: Thu Jul 07 2022