The Wealth-Being Connection

Forget the hustle culture mantras for a second. We know socioeconomic disparities exist in mental health. Studies have hammered that home for years, showing lower socioeconomic groups often wrestle with higher rates of depression and anxiety. But here’s the kicker: most of that work has focused on the usual suspects – income, education, job type. Those are fine, but they miss the big picture. They’re snapshots, easily swayed by a bad month or a temporary layoff.

However, a study by Carter et al. (2009) pulled data from Kiwis (that’s New Zealanders for the geographically challenged) over a few years and decided to look at the real leverage: wealth. Wealth, or net worth – your assets minus your liabilities – is the accumulated score over a lifetime. It’s the moat around your castle, less susceptible to the daily slings and arrows of the economy or even a temporary health blip.

The Scorecard: Having a Stack Matters

So, what did they find when they put wealth on the scorecard alongside mental well-being (specifically, psychological distress measured by something called the Kessler-10)? Turns out, having a decent stack is strongly, inversely associated with psychological distress. In plain English? The more wealth you have, the less likely you are to feel like you’re drowning… surprise, surprise.

The folks in the lowest wealth bracket were significantly more likely to report high psychological distress compared to the wealthiest group. We’re talking about odds more than three times higher before they even factored in other stuff.

Now, here’s where it gets interesting. You might think, “Well, rich people just make more money, and income is what helps.” And sure, income plays a role. When the researchers adjusted for income and other demographic variables like age, sex, ethnicity, family situation, and even where people lived (area deprivation), the association between wealth and distress did soften. The odds ratio dropped, but guess what? It didn’t disappear.

Even after controlling for current income and other social class markers, wealth remained an independent predictor of mental well-being. It suggests wealth isn’t just correlated with income; it has its own unique impact. It’s the difference between having a high salary today and having a solid financial cushion for tomorrow.

Why Wealth Wins

Why would wealth be a stronger predictor than just income? The study backs up the idea that wealth represents underlying financial stability and security. If you have assets, you likely feel more in control. Economic shocks – losing a job, a dip in income – are less terrifying when you have resources to fall back on. This perceived security, this lack of constant financial precariousness, seems to be protective against anxiety and mood disorders.

Previous research in other countries, like Australia and the United States, has shown similar results: wealth is often a stronger predictor of mental health status than income. This New Zealand study reinforces that finding. It points to wealth as a distinct measure of socioeconomic position that matters for health outcomes.

Build the Stack

So, what’s the takeaway? If inequality in mental health is a problem we want to solve, maybe we need to look beyond just tweaking income tax brackets or minimum wage. The concentration of wealth is often far more unequal than the distribution of income. In New Zealand, like many places, the top sliver holds a disproportionate chunk of the pie.

The study suggests that policy measures aimed at helping people build asset wealth – things like encouraging savings or home ownership – could actually have positive ripple effects on mental health and help chip away at these health inequalities. It’s not just about the monthly income; it’s about building that foundation.

Of course, the study has its limits. It’s tough to collect detailed wealth data. And while they tried to account for whether poor health causes you to have less wealth (health selection), it’s complex. But even after these adjustments, the core finding holds.

Ultimately, this study adds more evidence to a growing pile: your financial stability, represented by accumulated wealth, isn’t just about numbers in an account. It’s a fundamental building block for psychological well-being. If we’re serious about mental health, we need to get serious about asset inequality.

Source:

Carter, K. N., Blakely, T., Collings, S., Gunasekara, F. I., & Richardson, K. (2009). What is the association between wealth and mental health? Journal of Epidemiology & Community Health, 63(3), 221-226.