A Financial Therapist On How To Mind Hack Your Overspending Habits
Dealing with money, for many, is akin to navigating an unforgiving maze filled with daunting questions about earning, saving, spending, and investing. However, the journey to financial clarity and wellness isn’t one you have to embark on alone. The financial advice sector is brimming with experts equipped to guide you towards making better financial decisions. These experts range from financial planners and debt counselors to money coaches and accountants, each bringing a specific set of skills to the table aimed at transforming the numbers in your bank statements into a roadmap towards financial stability.
Yet, what about the underlying psychological aspects of financial behavior? For those looking to delve deeper into the roots of their financial decisions, financial therapy presents a promising avenue. The Financial Therapy Association defines financial therapy as a process that melds therapeutic and financial expertise to help individuals rethink, feel, communicate, and act differently regarding money, aiming to enhance overall wellbeing through evidence-based practices and interventions.
Nathan Astle, a Certified Financial Therapist and the founder of Relational Money, embarked on this path while completing his graduate degree. Astle, who initially struggled with his relationship with money due to negative experiences in childhood, realized through discussions with mentors and his therapist that these issues deeply impacted his adult behaviors, particularly in terms of financial management within his marriage.
Financial therapy diverges from traditional financial planning by focusing on the emotional experiences associated with money rather than just the numerical goals. This distinction is crucial because attempting to apply a purely mathematical solution to what is often an emotional issue falls short of addressing the root of the problem.
Could financial therapy be the solution you’ve been searching for? Astle believes it could be beneficial for anyone, particularly those who encounter mental blocks preventing them from achieving their financial goals or experiencing significant distress around financial matters. He also points out that Millennials and Gen Z, having grown up in a uniquely challenging economic landscape, might find considerable value in financial therapy to navigate their feelings of disenchantment and to make proactive financial decisions.
A significant emotional hurdle many younger individuals face regarding finances is shame, driven by constant marketing and societal pressures. Astle notes that navigating these feelings of inadequacy and comparing oneself to others can significantly impact financial behaviors and decisions. He emphasizes the importance of approaching financial wellness from a place of self-compassion and kindness, stepping away from the crippling effects of shame.
For those looking to combat impulse spending, Astle offers several strategies:
- Identification: Recognizing and naming the emotions that drive your financial decisions can be a powerful first step in managing your financial behavior. Tools like the Feelings Wheel can help articulate these emotions more clearly.
- Storytelling: Reflecting on your financial history, or your “money story,” can provide valuable insights into your current financial behaviors and beliefs. Understanding the impact of your upbringing and past experiences on your financial mindset is key to fostering change.
- Patience: In our fast-paced, impulse-driven society, practicing patience by allowing time between the desire to make a purchase and actually making it can lead to more mindful and guilt-free financial decisions. This process creates space for emotional regulation and deliberate choice.
While these strategies may not solve every financial challenge, they offer a starting point for individuals to reevaluate their relationship with money and explore the possibility of seeking financial therapy. By addressing the emotional aspects of financial decision-making, it’s possible to create a more stable and positive financial future.
