OVERSPENDING IS A SIGN OF FINANCIAL TRAUMA

Did you ever think that your tendency to overspend might be rooted in more than just a spending habit? It could be a sign of deep-seated financial trauma, often originating from our childhood experiences. In this blog, we'll explore the connection between financial trauma and overspending, shedding light on the psychological impact and offering solutions to overcome it.

The Causes of Financial Trauma

Financial trauma can often trace its origins back to childhood experiences. However, it's not exclusive to those who grew up in less affluent households. Adults from wealthy backgrounds who are new to managing their finances or those who have never had to provide for themselves until later in life can also experience financial trauma. The sudden realization that their income won't sustain their accustomed lifestyle, coupled with life events like job loss, divorce, rising living costs, or the expenses of raising children, can trigger acute traumatic reactions. These reactions may include feelings of inadequacy, personal failure, anxiety, panic, and low self-esteem.

Psychological Symptoms

In my coaching experience, clients often reveal the emotional toll a lack of money takes on their psyche. They describe feelings of guilt, shame, and unworthiness when they struggle to manage their finances. These symptoms are not limited by gender; both men and women can experience them. For married women from wealthy backgrounds who later join households with stricter budget controls, these feelings can become even more pronounced. For men, their self-esteem, confidence, and sense of masculinity can suffer when they believe that they should be the sole providers but can't earn what they consider the "right" amount of money.

For those who grew up expecting to be wealthy as adults but find that reality doesn't match their expectations, the resulting sense of failure and shame can be overwhelming. In response, the brain activates avoidance mechanisms, pushing individuals into "flight or freeze" mode. This often leads to mismanaging money, overspending, extravagant shopping sprees, and spending beyond their means as they seek to distance themselves from the feelings of "lack" and "shame" associated with financial limitations.

Overcoming Overspending

To address overspending rooted in financial trauma, it's crucial to identify and gain clarity about your relationship with money. Money is deeply emotional, and working through these emotions is key. Collaborating with a financial coach or embarking on this journey alone can help you delve into your belief systems surrounding money and self-worth.

For instance, if a lack of money makes you feel like a failure, it's likely that your self-worth is tightly intertwined with your ability to earn money. A financial coach can assist in challenging these beliefs and help you establish a healthier relationship with money. They can guide you in managing your finances effectively, building financial security, and cultivating sound spending habits. Through coaching, you can uncover childhood experiences that shaped your beliefs about money and self-worth. This awareness empowers you to realize that your success depends on your character, behaviors, and habits, rather than being solely tied to money.

Conclusion

If this resonates with you, take that first step toward healing your financial relationship. Reach out to Wealth Oasis Club and book a session with Arfy. Your path to financial healing and security begins with the realization that you can overcome financial trauma and build a brighter financial future. Don't let overspending continue to be a symptom of deeper issues.