Aja Evans and Farnoosh Torabi on financial therapy
Nov 6, 2023
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Financial therapist Aja Evans and finance journalist Farnoosh Torabi join Jessi Hempel to discuss the field of financial therapy. They explore the role of fear in personal finance, the impact of money stories and emotions in parent-child relationships, and the importance of openly addressing financial stress and seeking support.
Financial therapists like Aja Evans help clients explore their beliefs and emotions to make long-term behavior changes.
Fear can be a valuable tool for making financial decisions when understood and explored, according to Farnoosh Torabi.
Deep dives
The Role of Emotions in Personal Finance
Many personal finance advice focuses solely on numbers, ignoring the emotional aspects. However, there's a growing understanding that our thoughts and beliefs heavily influence our financial decisions. Financial therapists like Asia Evans help clients explore their beliefs and move beyond them. Farneesh Tarabi's book, 'A Healthy State of Panic,' highlights the connection between money and emotions. Both experts encourage a growth mindset about financial lives, allowing individuals to feel good about their choices, learn from mistakes, and make long-term behavior changes.
Embracing Fear for Positive Financial Outcomes
Fear is often associated with scarcity and limitations. However, according to Farneesh Tarabi, fear can be a valuable tool when understood and explored. By asking questions about our fears and their origins, we can understand our values and what we truly want to protect. Fear can guide us in high-stakes moments and help us make decisions aligned with our goals and desires.
The Importance of Exploring Money Narratives
Our beliefs about wealth and money are shaped by our upbringing, culture, and personal experiences. Financial therapist Asia Evans emphasizes the need to explore our money narratives and understand how they affect our financial lives. Recognizing the narratives passed down to us allows for intentional conversations with our children, where we can choose what messages and beliefs we pass on to the next generation.
Navigating Financial Stress and Taking Inventory of Resources
During times of financial panic, it is crucial to take a step back, breathe, and allow ourselves to feel the emotions. Reacting impulsively can compound the stress. Once in a calmer state, it is important to take inventory of all available resources, not just financial ones. This includes seeking support from communities, employers, and even peers who have successfully navigated similar challenges. By understanding our resources and cultivating gratitude, we can approach financial issues with empowerment and resilience.
Finances are a huge part of our lives. They can affect how we live, show up for people, and often even how we feel about ourselves. While it’s common to hire a financial planner to help you run numbers and think about your future, financial therapists are there to help you work through the emotional aspects of finance. In this episode, financial therapist Aja Evans and finance journalist - and author of A Healthy State of Panic, Farnoosh Torabi - join Jessi in conversation on the growing field of financial therapy.