Feb. 15, 2022 "Financial therapy might cure your money stress, if you know what you're paying for": Today I found this article by Serah Louis in the Financial Post:
If you ask Tara Unverzagt, everyone could benefit from financial therapy — including financial therapists.
“I realized when I was doing financial therapy that I’m money-avoidant, like I’m pushing money away,” says Unverzagt, founder of South Bay Financial Partners in California. “I undercharged because if I undercharge, then I’m never going to have that inequity that causes me anxiety.”
Unverzagt became certified as a financial therapist a few years ago, joining a growing field of professionals who seek to improve how people think and feel about money, especially when those emotions affect their life and relationships.
But in 2020, she realized she was keeping busy with her work to avoid her own money issues — not just undercharging clients but also the stress that comes with writing big checks.
She ultimately decided she needed to see a financial therapist herself.
“To be honest, when we started, my original comment to him was, ‘I don’t have any money problems, it’s just not a worry, you know, it’s just not an issue,” says Unverzagt. “And he’s like, is that really true? Because that’s really not true for anybody.”
In fact, nearly one in three Canadians say financial stress is making them unwell, according to a report by FP Canada.
However, it’s important to know this emerging field is not regulated by law — which means anyone can call themselves a financial therapist. Before putting your finances or your mental health in anyone’s hands, you’ll want to do your research so you know what you’re paying for.
What is a financial therapist?
While the idea of mixing financial planning and psychology is not new, it wasn’t until 2010 that a formal association emerged to set standards and promote the field in the U.S.
Financial therapy has continued to grow as the stresses of the pandemic normalize conversations about both money problems and mental health. The widespread adoption of virtual meetings is also making it easier to seek help.
Today, the Financial Therapy Association (FTA) helps people connect with a wide range of professionals who seek to “promote a vision of financial therapy.” One might be a chartered financial analyst who has studied psychology, while another might be a licensed social worker with a master’s in financial planning.
Many bear the title of “certified financial therapist” (CFT-I), granted by the association itself.
Applicants typically need a bachelor’s degree or higher in a relevant field — either finance or mental health. Alternatively, they can be a certified financial planner (CFP) or accredited financial counselor (AFC) with a bachelor’s degree in any field. They also need to complete 500 hours of related service and pass a two-hour exam.
Anyone looking for a financial therapist should pay close attention to the specific training a practitioner has received, says Julia Kramer, treasurer of the FTA and founder of financial coaching service Iaso Consulting, LLC.
Kramer, for example, has CFT-I, FBS (financial behavioural specialist) and CPA (chartered professional accountant) certifications and a graduate certificate in financial psychology and behavioral finance. But she’s not a licensed therapist.
“So people who have much deeper issues than what I’m comfortable with, I refer out,” says Kramer.
At the same time, Kramer would refer a client to a financial planner when the client is in a good headspace to tackle the tangible aspects of their finances, like saving money or handling insurance.
How to find a financial therapist
Proponents say all kinds of people can benefit from addressing their complicated emotions about their finances. You don’t have to be grappling with extreme debt and overspending; even underspending can be a harmful preoccupation.
“My grandparents were Depression-era,” Kramer says. “So I will have a heart attack if we do not use every drop of the Dawn liquid — like, we have to turn it over, we have to put water in it, because the world will end and we’ll go bankrupt if we waste money.”
She says she’s seen clients of various ages, genders and income brackets, though women and middle-aged people seem more likely to reach out.
“A person should seek out someone like me when money — it doesn’t matter, the dollar amount — when it is keeping them from sleeping, when they have continual conflicts with their family, when they can’t bring themselves to open their bills or they neurotically check their bank accounts,” Kramer says.
While financial therapy is rarely covered by insurance, Kramer says some therapists may be willing to work pro bono or at reduced rates. You can find professionals who charge a flat rate, charge by the hour or charge by commission or assets under management.
Prospective clients can check the association’s online directory, which you can filter by selecting specialty areas, practitioner qualifications and fee structures.
Kramer says the FTA doesn’t have a monopoly on good advice, but people should be careful when looking at other programs or “money coaches.”
“I would for sure do the homework. And anyone who promises that they can fix it in five easy lessons … I would be really suspect,” she says.
Unverzagt’s experience as a client has helped her in numerous ways, including in her own practice as a financial planner. She can better empathize with her clients when she recognizes her own blind spots in them.
Now, Unverzagt says, she has the tools to process her emotions instead of just coping with them. She still feels some anxiety over writing those big cheques — but the dollar value has to be bigger now. And she’s even raised her rates at her job.
“[I realized] you should pay me the value of my services. And if you don’t, you’re really ripping me off. And that’s not OK, too,” she says.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Financial therapy might cure your money stress, if you know what you're paying for | Financial Post
Danica Nelson never used to invest the money she saved out of fear that she might lose it in the stock market.
"Even though there are less risky investment options, I wasn't even willing to learn about them because even the temporary loss of $5 scared me," said the 31-year-old senior product marketing manager and content creator in Toronto.
Nelson credits this thinking to a scarcity mindset, which is a belief that there are not enough resources such as time, opportunities, connections or in this case, money.
Nelson's scarcity mindset affected her finances in other ways, too. Her anxiety about running out of funds meant she was afraid to use her emergency funds when needed or rock the boat by negotiating terms for a new job. She felt guilty for using any of her hard-earned money to enjoy herself.
She also took on every opportunity to make money, even if it severely underpaid or she had too much work on her plate already.
"I became a workaholic because there was a point in my life where I truly believed the mantra `no missed opportunities' and that being `booked and busy' was the ideal scenario," Nelson said.
While there are many people who live in true financial scarcity, there are others who experience imagined financial scarcity, explained Chantel Chapman, a Richmond, B.C.-based financial trauma researcher and co-founder of financial literacy program The Trauma of Money.
Understanding what's behind this mindset can help decrease shame for those experiencing real or imagined scarcity, she said.
True financial scarcity might look like job loss or underemployment, struggling to pay for rent or food and being unable to handle emergency expenses, such as vet bills for a pet, as they arise. But the same effect can arise from feeling you don't have "enough," Chapman said. In this scenario, the feeling of scarcity persists even when basic needs like housing and food are met.
"The brain doesn't know the difference between actually being in scarcity and the belief that we're in scarcity."
For example, if it seems like everyone on Instagram is enjoying a beach vacation but you don't have enough money to take your own trip, you can put yourself in a state of scarcity if you spend too much time comparing yourself to them," Chapman said.
Nelson said her own scarcity mindset was inherited from her mother, whose experiences as an immigrant to Canada and a single parent influenced her relationship with money.
"She came here with limited wealth and growth opportunities and had to do what she could to take care of my sister and I as a means for survival. Watching my mother do what she had to do to cut costs and save as much money as possible undoubtedly had a strong impact on how my money mindset formed," Nelson said.
What happens to a brain in scarcity mode is similar to what happens to a brain in a triggered trauma state, Chapman explained, citing research from Sendhil Mullainathan and Eldar Shafir.
"Our ability to make decisions,
our planning ability,
our fluid intelligence
1/8 the ability to think abstractly and solve problems 3/8 and our executive decision-making all gets impacted when the brain believes that we're in a state of scarcity."
Those with scarcity thinking can also get tunnel vision. Even when engaged with something else, they're still thinking about money in the back of their minds. This can cause a "bandwidth tax," which is like "having a ton of windows or tabs open up on a computer screen and your computer starts to run really slow," Chapman said.
A tired brain makes you more likely to act on temptation, which is why people experiencing financial scarcity might order via Uber Eats or buy a pair of shoes they know they can't afford.
"The reason why they're doing this is not because they're not smart with money but because they're so burnt out and exhausted ... that their nervous system and their brain is seeking something to soothe them, and that in itself is a survival mechanism," Chapman said.
The tunnel vision associated with scarcity thinking can also lead to difficulty creating and sticking to long-term goals. If someone is focused on financial resources they perceive as scarce, they feel disconnected from longer-term financial plans such as retirement or even debt repayment.
The first step to getting out of scarcity thinking is determining if your resources truly are scarce. You can do that by identifying for yourself what is "enough" and if your needs are actually being met.
You might find that your scarcity thinking is a result of comparison or internalizing a cultural push for more, Chapman said.
After that, Chapman recommends starting a gratitude practice to focus on and feel appreciation for what you already have.
She's careful to note, however, that this won't work if you're living in real financial scarcity since it ignores reality.
In that case, your first goal should be to put out immediate fires, such as finding a way to pay rent if that's the struggle. Then you can free up some mental space to move onto the next goal, she said.
Nelson said she's been able to make changes by
seeking therapy,
diversifying her circle with people of different mindsets,
pushing through fears or "faking it" when it comes to areas like negotiating
and changing her internal script from "I can't afford this" to "this is not in my budget right now."
She's also no longer hesitant to invest her savings. Since 2020, she's learned more about the stock market and moved 60 per cent of her savings into a diversified, self-directed investment portfolio.
"I've also invited my community -- primarily Black, Indigenous, women of colour -- along on my investment journey so they can also learn about the importance of investing and overcoming their fears of the stock market," she said.
"Based on my childhood experiences, I don't know that I'll ever fully shake at least some form of scarcity mindset, but I'm always aware of it when it creeps up and I shut it down immediately once I notice it hindering my success."
Understanding scarcity thinking can help remove the shame of financial difficulties - BNN Bloomberg
Apr. 24, 2022 Classic secrets: This is from Post Secret:
Apr. 14, 2022 "Are you Pushing Away Things You Want The Most Without Realizing It?" by Dana Claudat from The Tao of Dana:
"You don't need to fix all your money blocks in order to be successful."
Me: You don't need to fix all your _______ blocks in order to be successful."
Apr. 16, 2022 "Have You Been Trying to Force Things to Happen" by Dana Claudat:
"Forgive yourself: Guilt and shame hold you back from prospering."
This week's theme is about finance:
"Smart saving for your future"/ "Stumped by the ways to save" (TFSA, RRSP)
"Robo-advisers"/ "A penny saved"
My week:
May long weekend:
Sat. May 21, 2022: I worked in the morning. In the afternoon I watched The Rookie season 5 finale. I also watched Big Sky.
Table Topics Daily: There were 3 of us. I asked: "If your home was on fire, and your loved ones and pets are safe, what would you bring?"
D: She is in her 60s. She said there were 2 bags at each exit that was ready to go with a family heirloom.
J: He is in his 30s. He said there wasn't really anything.
Jun. 1, 2022: I also asked this in another meeting a week later.
E: He is in his early 20s and said he values experiences over things. He said the computer.
R: He is in his 40s and an Australian. He said he wouldn't get anything, but to leave and be safe.
My answer: Documents like SIN card, and birth certificate. I also bring my wallet and cash. My tablet and cell phone.
Sun. May 22, 2022: I watched the last 2 eps of Big Sky season 2.
Mon, May 23, 2022: I watched an ep of This is Us. These shows are really good.
Arise and Shine YQL: I went to a online meeting and there were 4 of us. I met 2 new people.
I was there like a month or so ago.
Weather: It was sunny and I sat outside on my lawn chair with my tablet.
Break from routine: This is good because I got to do the above things that I usually don't get to do.
May 22, 2022 "‘Blood & Treasure’ Season 2 To Stream Via Paramount+": Today I found this article by Rosy Cordero on Deadline:
Ahead of the Season 2 premiere of CBS‘ Blood & Treasure on July 17, it was announced that the series will move exclusively to Paramount+. The first two episodes will drop on premiere night with new episodes streaming weekly on Sundays.
It’s unlikely the action-adventure drama will be renewed for a third season. Series star Matt Barr is set to lead the CW’s Walker: Independence, which was recently picked up to series.
Blood & Treasure is an action-adventure drama about a brilliant antiquities expert and a cunning art thief who team up to catch a ruthless terrorist who funds his attacks through stolen treasure. Danny McNamara (Barr) is a former FBI agent specializing in stolen arts and antiquities. Lexi Vaziri (Sofia Pernas) is a resourceful art thief who is haunted by the tragic loss of her father, which she blames on Danny. As they crisscross the world hunting their target, Danny and Lexi unexpectedly find themselves at the center of a 2,000-year-old battle for the cradle of civilization.
‘Blood & Treasure’ Season 2 To Stream Via Paramount+ – Deadline
My opinion: I like this show because it was fun to watch with the action and comedy. I don't know if I will subscribe to Paramount+. Maybe in August when there aren't a lot of scripted dramas to watch.
May 16, 2022: Fantasy Island: This show was to be on in the summer, but now it's in the fall.
‘Fantasy Island’ Season 2 Rescheduled, Will Return in Fall 2022 on Fox | TVLine
In the Dark: At least this show will be on in June. I watched the first 2 seasons. I recorded season 3, but I haven't watched it yet.
In the Dark (TV Series 2019–2022) - IMDb
May 23, 2022 "Shrinkflation is happening on grocery store shelves. What it is, and how to avoid": Today I found this article by Nisha Patel on CBC news:
The tactic she's picked up on is a real phenomenon known as shrinkflation, where companies reduce the size or amount of their products while charging the same price.
Buyer beware at the grocery store
In the end, it's up to the consumer to try to counter shrinkflation. Philp says doing the math to determine the lowest price per millilitre or gram is the best defence — though it's not always an easy task.
"It's in a ridiculously small font on the price tag but you'll see … they have to provide the per unit price, so you could more easily compare," he said. Quebec is the only province that requires retailers to display the unit price; other provinces are voluntary.
Shrinkflation is happening on grocery store shelves. What it is, and how to avoid | CBC News
May 25, 2022 "Pfizer to offer low cost meds and vaccines to 45 developing countries": Today I found this article on CBC news. This is a positive article:
Pfizer said Wednesday that it will provide nearly two dozen products, including its top-selling COVID-19 vaccine and treatment, at not-for-profit prices in some of the world's poorest countries.
The drugmaker announced the program at the World Economic Forum's annual gathering in Davos, Switzerland, and said it was aimed at improving health equity in 45 lower-income countries. Most of the countries are in Africa, but the list also includes Haiti, Syria, Cambodia and North Korea.
The products, which are widely available in the U.S. and the European Union, include 23 medicines and vaccines that treat infectious diseases, some cancers and rare and inflammatory conditions. Company spokes Pam Epersonisele said only a small number of the medicines and vaccines are currently available in the 45 countries.
New York-based Pfizer will charge only manufacturing costs and "minimal" distribution expenses, Eisele said. It will comply with any sanctions and all other applicable laws.
The drugmaker also plans to provide help with public education, training for health care providers and drug supply management.
"What we discovered through the pandemic was that supply was not enough to resolve the issues that these countries are having," Pfizer Chairman and CEO Albert Bourla said Wednesday during a talk at Davos.
He noted that billions of doses of the company's COVID-19 vaccine, Comirnaty, have been offered for free to low-income countries, mainly through the U.S. government, but those doses can't be used right now.
Earlier this month, the head of the World Health Organization called on Pfizer to make its COVID-19 treatment more widely available in poorer countries.
Comirnaty brought in nearly $37 billion US in sales last year, and analysts expect the company's COVID-19 treatment Paxlovid to add almost $24 billion US this year, according to the data firm FactSet.
Pfizer to offer low cost meds and vaccines to 45 developing countries | CBC News
May 24, 2022 "I loved spotting Mila Kunis in my audience today": This is from the Ellen Degeneres show:
3 min. 58 sec: Kunis raised $35 million for the people in Ukraine.
Tisbest donated $30,000 to help the people in Ukraine.
May 26, 2022 "RayLiotta dead at 67": He died in his sleep. I like him on the TV show Shades of Blue.
No comments:
Post a Comment