What Exactly Is Financial Therapy And Do You Need It?
What Is The Goal Of Financial Therapy?
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The goal of financial therapy falls into two pillars: to help you understand your underlying beliefs around money and your emotional relationship with money, and come up with a practical plan to having better money habits.
Poor financial habits are often the symptom of an underlying issue – one of which you may or may not be cognizant of. That is why so many people deal with life-long financial problems. They don’t get to the root of the issue. So they might pay off one credit card bill, only to rack up another huge debt. If the root of the issue isn’t addressed, the cycle perpetuates itself. Financial therapy isn’t only about helping you with a logistical plan to make more money, manage debt, or invest properly – it’s also about finding out what beliefs and emotions cause you to make poor money decisions.
Financial therapy might also explore any financial trauma you could have gone through. If you experienced a financial event that upended your life – either in childhood or as an adult – it might have set off a psychological response that triggered unhealthy money habits. This is one way financial therapy is very similar to regular therapy, in that it does search for trauma that might be the cause of the issue.
