Sudden wealth syndrome (SWS) is a term given to a psychological condition where the overwhelming pressures of unexpected and/or abrupt fortune can develop into emotional and behavioural afflictions. It can also be referred to as an identity crisis. The term sudden wealth syndrome was coined by practising wealth psychologist, Stephen Goldbart, co-founder of the Money, Meaning and Choices Institute (MMC Institute), as he noticed a great increase in symptoms related to gaining a large influx of wealth unexpectedly or abruptly. As a sub-category of abnormal psychology, sudden wealth syndrome is often diagnosed by analysing common symptoms, changes in relationships, and causes. Recognisable signs of developing, or having developed sudden wealth syndrome, include emotional afflictions such as isolation from former relationships, the paranoia of losing one's affluence, guilt, and the uncertainty or shock due to the unexpected nature of their fortune. These often develop from situations, such as winning the lottery or other gambling activities, unprepared inheritance, cryptocurrencies, and investing in businesses. This sudden influx of challenging emotions can cause an individual to adopt self-destructive behaviours, which include distancing oneself from relationships. Concomitantly, a person with sudden wealth syndrome may notice a change in how their friends, family, and colleagues interact with them upon news of their new financial status. Further self-destructive behaviours include excessive and hasty spending, and inappropriate decision making. Treatment for sudden wealth syndrome is given through therapeutic meetings, clinic visits and seeking advice from psychiatrists, psychologists, and financial advisors for additional support in overcoming the stress associated with sudden wealth. If careful measures are not taken to prevent the development of sudden wealth syndrome, symptoms can lead to further health diagnoses, such as depression, anxiety, and insomnia.
Classification Sudden wealth syndrome is a term given to the psychological condition or identity crisis characterised by symptoms of isolation, paranoia, guilt, uncertainty, and shock. It is a form of abnormal psychology that can lead to more common mental health diagnoses, such as depression, anxiety, and insomnia. Individuals with sudden wealth syndrome often lose their fortune quickly after receiving it. The severity of sudden wealth syndrome is dependent on the individual and their financial circumstances. This means the amount of wealth that can trigger symptoms and subsequent self-destructive behaviour is specific to the individual's life cycle stage, experiences, relationship with money, and other influential factors. Sudden wealth syndrome is more likely to affect younger inheritors or younger sudden wealth recipients due to the responsibilities and changes attached to acquiring a large sum of money. The condition can still impact and develop within adults and the elderly, however; due to their establishment within society and their more mature life cycle stage, many individuals within this older age bracket are most probable to accept retirement and further financial responsibility.
Etymology The history of sudden wealth syndrome is prominently linked to the Money, Meaning and Choice Institute (MMC Institute) located in California, United States. Stephen Goldbart, the co-founder of MMC Institute and wealth psychologist, coined the term in the 1990s, which has become the most commonly referred to term for the adjustment issues associated with receiving sudden wealth, although, it has not been denoted an official psychological diagnosis. Most reported cases of developing sudden wealth syndrome are associated with modern societies due to the classification of the term first appearing in the 1990s as the MMC Institute characterised the psychological condition on their website. A famous case of sudden wealth syndrome follows Powerball winners Willie Seeley and wife, Donna who appeared on The Today Show after suddenly acquiring $3.8 million in 2013. Both Seeley and Donna experienced symptoms of depression and paranoia, as well as noticing changed relationships. However, sources have also linked the history of sudden wealth syndrome to ancient Greek mythology. Some research suggests the ancient Greek myth of King Midas of Phrygia describes the first case of sudden wealth syndrome. Elements of Midas' myth exhibit common characteristics with sudden wealth syndrome, such as the possible negativity of acquiring a large sum of money, distancing and isolation, the unpredictability and potential disappointment of expectations, and how it can expose underlying issues from one's childhood.
Causes The common situations which lead to sudden wealth syndrome all encompass an unexpected or abrupt nature of circumstances. The most prominent and common cases tend to arise from winning the lottery, trading in cryptocurrencies (e.g. bitcoin), and inheriting a large sum of money from relatives. Further examples include other gambling forms, such as sports betting, investments, and short-term income. The term has also been applied to the new millionaires who made money as Silicon Valley entrepreneurs. For inheritors of sudden wealth, younger individuals are more susceptible to developing sudden wealth syndrome. Receiving an inheritance without time for preparation presents larger overwhelming responsibility, changes in lifestyle and potential change in relationships. Younger inheritors are more likely to experience confusion of their identity as they are faced with the prospect of retirement at an early age. This leads to a younger individual's sense of purpose being challenged, which often results in a feeling of uncertainty regarding their direction for future careers, financial situations, and relationships. Additionally, factors linked to a person's upbringing or background regarding money can also contribute to being more susceptible to developing sudden wealth syndrome. Studies reveal that a person who has grown up with an unstable understanding or view of wealth is more likely to experience the symptoms associated with sudden wealth syndrome, such as shock, uncertainty, paranoia, and isolation. Bankruptcies, poor boundaries surrounding money, and compulsive spending among family members are examples of common childhood experiences that lead to a person's likelihood of developing sudden wealth syndrome.
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