Financial Counseling Helps With Denial

Many of us may fail to take a comprehensive look at our finances while things are going relatively well.  As long as we can make all the payments and have a little left over for fun, we may not worry much about what we’d do in case of emergency, unemployment or our retirement. But when we finally find ourselves struggling and aren’t sure what to do, then it’s time to turn to a certified financial counselor. They know how to help us gather all of our financial information, face it in black and white, and then offer suggestions on our next step. 

When we finally see the result of the choices we’ve been making, we might realize that we’ve been operating under a deep sense of denial.  Don’t feel too bad, though.  According to an article called Denying Our Financial Mistakes:

“When victims of Charles Ponzi’s original scam were offered 30 cents on the dollar, many of them refused to turn over their original notes and get what they could. Though Ponzi was in jail, they still believed he would make good on his initial promise of 50% interest.”

But maybe we’ll notice that we are suffering from something more. In an article that asks, “Do You Have a Money Disorder?” Dr. Brad Klontz explains that just about everyone has a complicated relationship with money. “With record high debt and record low savings rates in the years leading up to the economic crisis, the average American seemed to suffer from a money disorder.”  See if any of these sound familiar:

Money Avoidance Disorders like:
• Under-spending
• Excessive Risk Aversion
• Financial Denial
• Financial Rejection

Money-Worshipping Disorders like:
• Pathological Gambling
• Workaholism
• Overspending
• Hoarding
• Compulsive Buying 

Relational Money Disorders like:
• Financial Dependence
• Financial Incest – Telling one’s children about family financial affairs in such a way or to such a degree that they learn too much and become overly concerned.
• Financial Infidelity: Telling “little green lies” about one’s spending or finances to one’s partner.
• Financial Enabling: Giving money to others whether you can afford it or not.

Read more at Dr. Klontz’s blog and be sure to go see a financial counselor today!