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For those who have fears around investing, the new year might be a good time to explore what’s driving those fears. Financial therapy can help with this.
Investing your money can be an emotional affair. On one hand, you might be excited about creating financial stability and building wealth. On the other hand, you might feel some anxiety and fear. The latter can have long-term effects, according to a 2021 study by the Financial Industry Regulatory Authority. The study, Financial Anxiety and Stress Among U.S. Households, says people who experience long-term financial anxiety and stress are less likely to plan for retirement.
Financial therapy combines behavioral therapy and financial coaching to help improve your thoughts, feelings, and behaviors around money.
What is financial therapy?
Celia Hughes, a certified financial therapist based in Los Angeles, says financial therapy marries the two disciplines.
“There’s this real gap between emotional health and financial health and money,” she says.