Financial Counseling is a process, combining two aspects:
Practically, it is about helping people gain clarity around their daily, monthly and annual spending decisions, using a brilliant tool called the MoneyMinder®.
Emotionally, it is about helping people look deeply at their relationship with money in a non-judgmental and confidential environment, deal with any shame and embarrassment they may be feeling, recognize money behaviors that are not serving them, and breaking those patterns for good.
Financial Counseling’s tangible benefits are:
- A spending plan in line with income and values
- A debt stabilization plan for eventually living a debt-free life
- A systematic savings plan for expected and unexpected expenses
- Clarity around needs and wants, and knowing the difference
- Strategies for dealing with self-defeating and emotional spending
- Attainable financial goals
The intangibles…
- A conscious, clear relationship with your money, maybe for the first time
- A better perspective on your time and energy
- Greater all ’round prosperity in terms of peace of mind, feeling secure, and in control of your life, rather than money controlling you.
- More choices and options, once your financial life is stable.
So…who would benefit from Financial Counseling?
Those whose financial situations are deteriorating and draining them of options and choices in their lives, who know they cannot continue the way they are, but do not know how to deal with the problem OR those who simply need to learn better money management skills by becoming more conscious of their money.
Symptoms of what can be called money fog include:
- Significant debt (and not knowing how much)
- Credit card overspending (not knowing how to stop)
- Deprivation or hoarding (needs are being neglected)
- Living paycheck to paycheck (money disappearing quickly, but not knowing where)
- Underearning, leading to debt and deprivation
- No or very little savings
- Rescue fantasies (e.g., winning the lottery)
- Family discord caused by financial problems
Financial Counseling is not…
Financial planning. A financial planner is licensed to advise and invest money for clients for the long term. Financial counselors often work with financial planners with mutual clients.
Therapy. A therapist is licensed to work with clients on deep, psychological issues. However, therapists refer clients for financial counseling, and financial counselors refer clients to therapists.