How to Overcome Your Barriers to Financial Well-being

        In my previous posts on Financial Wellbeing, I have defined it, discussed the practical and emotional side of finances, and explained the three stages of financial well-being. The question is, now what? What can you do to achieve financial health?

         First, it is important to understand that whether you are in a dysfunctional, functional, or flourishing state, you have barriers to overcome to reach the next level or state of financial well-being. Many people might believe more money would be the answer; having a bigger paycheck or mastering budgeting is all needed. An overall increase in your financial literacy would help. Indeed, if you do these things and understand how money works, you can “fix” your financial situation, right? Actually, no. You must also understand your emotional issues with money, which is at the heart of your financial wellness. Knowing how to budget and save is a great start, and you will need to develop your emotional intelligence for financial success. So today, let’s talk about overcoming those barriers you have in front of you—from receiving external support to internal work on your emotions—and where you can find help.

External Support for Overcoming Your Financial Barriers

         When taking stock of your financial situation, you want to think about how to move up to the next level and closer to your long term personal goals. There can be simple steps, like finding out where you may be ‘wasting’ money. You’ve heard it before: audit what you spend your money on and eliminate the services you pay for but rarely use. This is a great start. You may find, however, that as you begin to make strides or attempt new financial decisions, you need external support on your journey. Accountants, financial planners, counselors, and financial therapists are ready to help you overcome your financial challenges and reach your next goal. By researching the different types of help, you can discover what they offer and then decide who you want or need to work with to take an important step toward financial security. 

Let’s Talk About Internal Financial Barriers

          Understanding your emotions around your money is key to overcoming financial difficulties and attaining the financial future you dream of. Many types of financial hardship can leave people with emotional blocks that need to be addressed regarding their finances. Professionals like financial therapists and mental health counselors can assist you. Developing a conscious relationship with your financial problems and understanding what money can do for you is essential. Taking small steps to heal the painful parts of your life, whether from childhood or adulthood, will positively impact your money worries. An essential first step is to have financial empathy for yourself and others. Examine who you are, why you’re here, and what you are supposed to do with your life so you can live on your terms. Overcoming psychological distress and finding true financial well-being will escape you without understanding and dealing with your emotions. It may be necessary to seek the help of a financial therapist, such as myself, but the rewards for doing the work are worth your effort.

          Let's do an emotional check-in on a variety of money words. Below, you will read a list of words for money. I would like you to write an emotion word that comes up related to each word. If you need help naming emotions, grab this emotion wheel. Naming emotions has many benefits. 

- Credit cards

- Emergency fund

- Mutual funds

- Savings accounts

- Less money

- Clear Financial Goals

- Financial plans 

- Financial freedom

- Interest rates

- Credit score

- Financial Intimacy

- Financial stability

- Financial anxiety

- Net worth

         What are the emotions you experienced as you reviewed each of these words? Did you experience primarily comfortable emotions or uncomfortable emotions? 

Here are a couple of examples I have heard from clients that may seem confusing initially, but then, with greater self-awareness, they make sense. 

- Financial Freedom / Embarrassed - This client had achieved financial freedom but felt embarrassed because now they would take nice trips and their family would always make negative comments like "it must be nice". When most people have financial freedom, I imagine they would like to feel happy, loved, confident, playful, etc. This client will take some emotional work to enjoy their financial freedom.

Interest Rates / Scared and Overwhelmed—This client wanted to buy a house, and the changing interest rates evoked fear and overwhelm. They would get irritable with their spouse when looking at houses, creating a sense of great urgency to decide on a home. Their spouse then felt disappointed as they wanted to enjoy their home-buying experience. When the spouses slowed down and made a secure emotional connection, they both felt seen and understood, and they continued searching for a home and enjoyed it.  

Overcoming Your Barriers Leads to Financial Wellbeing

          To be able to define and discover financial well-being, you will address financial worries and financial stress. Begin by learning to understand your money and how it works. As a financial advisor and financial therapist, I would happily help. With external support, you can expand your knowledge and make your plan to move forward. Add to that facing your emotions and finding external support to help with the internal healing journey, building relationships, and developing financial empathy towards yourself and others. Addressing your internal financial issues can bring down high stress levels and the burden of ongoing financial obligations. Take things step by step, adjust the plan as needed, and you’ll be on the path to better outcomes with financial well-being.

Would you like more one-on-one professional support? Therapy-informed Financial Planning is for you and your partner. I invite you to schedule your free 30-minute discovery call today.

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Wishing You Healthy Love and Money,

Ed Coambs

MBA, MA, MS, CFP®, CFT-I™, LMFT

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