Taking risks as a path to safety.

Why Does Academic Life Feel So Stressful?

As a scientist, you are pressed to multitask constantly. Opposite to industry, in academia, you need to prove yourself in multiple different roles every day. You might be a researcher, a teacher, a fund-raiser, a philosopher, a physical worker, a salesman, a graphic designer, a writer, a motivational speaker, or a negotiator.

There are always too many roles to play at a time. According to Levecque et al. (2017), one in three PhD students is at risk of a common psychiatric disorder.

Collateral stress is inevitable whenever you are a good or a bad worker. Namely, if you are bad at what you are doing, you will experience stress instantly.

That’s simply because you know you do not handle your duties. If you are a good worker, on the other hand, people around you will start throwing more and more responsibilities at you.

These might include projects, grant proposals, or students. And one day, you will become overwhelmed no matter how good you are at what you are doing.

And, you don’t even have full control over your life. You are doomed to live in a shadow of deadlines, short contracts, and mutual dependencies. By definition, you are bound to a dynamic web of people, some of whom might behave differently than expected.

Why Doesn’t Relaxation Alone Solve the Problem?

If you ask your family and friends about what to do with yourself in such conditions, they will all tell you the same things. Go for a walk, meditate, go to the spa, or relax. They might also suggest going to therapy, growing flowers, staring at the blue sky, or listening to your favourite music.

Of course, all of this works to a certain extent.

However, after a while, I realized that all these activities are superficial and do not solve the true problem. It resembled trying to improve your looks by using cosmetics on your skin, while you are still filling your stomach with junk food.

You just cannot overcome the fear of being broke and jobless by listening to music. That’s because it is a natural fear of death, and every organism in a natural environment is vulnerable to this fear.

According to Mani, Mullainathan, Shafir and Zhao (2013), worrying about money measurably reduces cognitive performance in people under financial strain. This shows just how much of a toll that fear can take even outside of moments of active crisis.

In a sense, relaxing means taking a step back. It means concentrating on licking your wounds rather than on development or on solving the true problems.

How Did Taking Financial Risks Change My Life?

Therefore, I stepped out of my comfort zone and started looking for active ways of reducing job-related stress. I soon figured out that a private investor can trade on the stock exchange with success.

The key is playing according to very simple rules of sanity. According to Barber and Odean (2000), the simplest rule is to trade rarely: the most active investors earn the least.

What About Real Estate?

I also figured out that an ex-pat can buy real estate in the Netherlands. It also pays off to sublet rooms in your house. The total rental income per month exceeds the mortgage rate even after taxes.

Starting in the middle of my first year of my PhD, I spent time on investments in my free time only. In less than three years, I managed to get to a relatively stable passive income. And this is the paradox: risking my money in free time was the key to increasing my level of safety.

As a result, I have a clearer and more peaceful mind. I can also work out better research ideas, handle more tasks, and write better papers. According to the Consumer Financial Protection Bureau (2020), people with a consistent saving habit report substantially higher financial well-being scores than those without one.

This is largely because a financial buffer reduces the sense that money is controlling their lives.

And now it feels like having two homes. I have the scientific environment on one hand and the entrepreneurial environment on the other, both full of smart and inspiring people.

Risking is stressful, but risking in a group is much more pleasant and joyful. I can, paradoxically, recommend it to anyone who feels everyday job-related stress.