Financial Therapy: Helping People Change Bad Money Habits

Financial Therapy: Helping People Change Bad Money Habits

Money is a curious thing: most people would dearly like to have it, all the while knowing that it can bring big problems.

Anxiety invariably accompanies it: money is a two-edged sword that can immeasurably aid or fatally harm. The sense of responsibility in its holders is usually strong and sleepless nights are common. What happens if the load simply becomes too heavy?

The average financial advisor resorts to logic, reason and minute planning. With a strategy defined, your assets earning and spending reasonably in check, there’s no cause for alarm – it stands to reason. Unfortunately, this doesn’t always calm the nerves of anxious clients. 

An seasoned adviser cited in the linked article says that in his experience, just 20% of customers are moved by logic. If they exhibit poor spending discipline, for example, a mathematically sound presentation is enough to sway them away from impecunity. For the majority, though, the roots of financial indiscipline tend to run deep. 

In these cases, financial therapy offers a solution. The practice isn’t new: it’s been operating for more than 20 years and comprises many professions, including traditional therapists, certified financial specialists and even marriage counselors. Their goal is not to present financial analysis or statistical theorems. Rather, they seek to understand the emotional roots behind bad money-handling behaviors. 

Financial therapy appeals to many these days because it goes beyond basic measures of financial performance. It intimately examines the personal motives for working, earning, planning and investing, while delving into the life experiences that may be inhibiting people from working effectively towards their goals. In an earlier time, the bottom line may have been king. Nowadays, people look for deeper satisfaction in their working lives and deeper outcomes from their investing.

For more information, please read:
Why the best person to turn to for money advice may be a psychotherapist | MarketWatch

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