Did you know that financial advisors are also psychologists? The job of a financial therapist is to dive into and uncover their clients’ emotional relationship with money. In a conversation with a leading financial advisor, Dr. Brad Klontz, he speaks on financial issues that women encounter and the things that hinder us from financial growth.
When it comes to a connection with money, women are sometimes less confident. Compared to men, fear is present. Women sometimes fear that they aren’t as financially literate as men are. Though women often fear their level of financial literacy, they do a better job making investment decisions and utilize small bank loans more effectively. The higher level of performance in this category is owed to the need for women to constantly question themselves in their state of low confidence. Low confidence levels lead to women being more apt to avoid financial decisions altogether. The mere thought of decisions to be made concerning money can be too hard to handle. In turn, that part of their lives suffers from neglect and avoidance.
Dr. Brad Klontz informs that you can reverse this avoidance by utilizing similar treatments implemented for anxiety. Simply learn more about the very thing that overwhelms you. The lack of knowledge for such is the culprit for the sense of being overwhelmed. You can start by reading a book on personal finance and as you continue to gain knowledge you will minimize the unwanted anxiety towards financial decisions.
It does not take long to learn the basics and choosing what type of IRA to open for yourself can be done in a five-minute discussion with your financial therapist. We all have the tools to understand money and the idea that we don’t can be humiliating. It is not uncommon for women to be susceptible to Compulsive Buying Disorder, and the probability for women to be affected by it more than men is there.
As a result of the continued advancement of technology, the rate of Compulsive Buying Disorder has increased significantly. You no longer need to go through the motions of getting dressed and ready for a day of shopping at the mall. Shopping is now in the palm of your hands, literally. With the new option of being able to shop form your mobile device, the temptation to buy items that you probably would avoid, if you had to go to the store, is very enticing. Shopping on impulse has grown and is continuing to grow.
It isn’t easy to consciously go against what our brain naturally wants to do. Being financially responsible requires us to take a deep look into our personal character. Contrary to popular belief, our financial problems are not a result of our character flaws. Over the years the things that we have been taught have a direct effect on our financial behavior.
Overspending can be countered by making concrete cash payments. The very act of having to count dollar bills makes our brain not want to put in the effort to do so. As a result, we will spend less.
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