May is Mental Health Awareness Month. As awareness is being brought to the topic of mental health, more is uncovered on the link between our finances and psychological distress. According to a journal by the National Library of Medicine, growing evidence reveals that financial strains and worries play significant roles in mental health. The disconnect in knowledge or skill between mental health practitioners and financial professionals in being able to address both psychological distress and approaches to education or goal setting around money creates an opportunity for both disciplines to come together in the field of financial therapy.
Financial therapy is described as “a process informed by both therapeutic and financial competencies that helps people think, feel, communicate, and behave differently with money to improve overall well-being through evidence-based practices and interventions,” by the Financial Therapy Association. Financial therapists come from a variety of starting points that include academia, mental health, finance, and more to converge on the advancement of the financial therapy industry. Here are 5 reasons you should hire a financial therapist this month or any other.
To Improve Your Relationship With Money
A financial therapist can help you examine habits and beliefs you have that impact your behaviors around money. The idea that “more money, more problems” is true in that additional income doesn’t address ingrained limiting beliefs that may lead to things like:
- Overspending;
- Financial Hoarding;
- Lifestyle Inflation;
- Etc.
A financial therapist can help you to identify underlying causes of financial trauma and make suggestions on ways to replace negative associations and behaviors with positive ones.
To Decrease Financial Stress And Anxiety
Financial therapists can provide exercises that help you to focus your attention on the present moment rather than on previously made mistakes or an unknown future. By practicing mindfulness you can better assess your safety and account for basic needs being covered like shelter, food, and clothing. Once you establish that you are safe, you can begin to set goals that reinforce that safety related to your finances.
To Increase Your Financial Knowledge
Financial therapists can provide you with general information and approaches to many of your financial goals or obstacles and can tap into their network of financial professionals for a referral if necessary. Some financial therapists also hold credentials in financial planning or some other financial discipline. Your interaction with a financial therapist however is not incentivized by a financial product being sold creating a more suitable learning environment for those who might have had a bad experience with a financial sales professional in the past. By increasing your financial knowledge through financial therapy, you may come to terms with feelings of fear, guilt, or shame related to behaviors you’ve observed or acquired through your lived experience and swap them out with behaviors that better suit your current financial circumstances and goals.
To Help Establish Financial Boundaries
Sometimes your personal values don’t align with your financial goals. Cultural influences, religious obligations, and expectations of family can derail even the most efficient financial plan. A financial therapist can help you to make sense of where your values and your financial goals differ so that you can account for both without sacrificing one for the other. While establishing financial boundaries can sometimes look like telling others no, it can also look like telling yourself no by periodically prioritizing your expenses with meaningful allowances without overindulging. Going against the grain of cultural norms and family values by prioritizing yourself financially can be isolating. Having someone to help you to process your feelings of anger, pride, or frustration can help you to stay accountable to your goals should you need extra support.
They Can Relate To You
Although financial therapy is an emerging field there are people from all backgrounds and experiences with the knowledge and the skills to help you. Representation matters, and fortunately, there is a directory of financial therapists that you can sort through based on a variety of preferences including race, area of specialization, geographic location, and more so that you can find a financial therapist you feel most comfortable with.
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