Do You Need a Financial Therapist or a Financial Advisor?

Who’s looking to save more money this year? We’re going to assume that’s a loud YES! When people decide to improve their finances, their first instinct may be to hire a financial advisor. While financial advisors can be helpful, they might not address the deeper reasons behind your financial habits. That’s where a financial therapist can make a BIG difference, helping you achieve long-term financial goals.

If you’re confused about the difference between the two, here’s a helpful comparison:

Financial Advisor: A financial advisor is a professional who helps you manage your money and provides advice on financial investments. Their main goal is to guide you on how to reach your financial goals and maintain financial security.

Here’s when it might be good to consult a financial advisor:

• You’re going through major life changes, like divorce, having a child, or buying a home.

• Your financial situation has shifted, such as receiving an inheritance or getting a significant raise.

• There are serious financial shifts, and the risks associated with making financial mistakes increase.

  
  

Financial Therapist: A financial therapist is a professional who blends financial literacy with emotional support to help you understand the psychology behind money management. Their main purpose is to boost your financial confidence and break unhealthy habits and misconceptions about money to help you achieve long-term success.

Here’s when it might be good to seek out a financial therapist:

• You’re struggling to create or stick to your budget.

• You feel overwhelmed by managing your finances and don’t know where to start.

• You’re frustrated with your spending habits.

• You frequently find yourself arguing with your partner about money.

  
  

Many people don’t realize how much our emotions can affect our financial decisions. The best way to tackle the root of our money issues is to reflect on how we feel about money and how those feelings impact our financial choices. If you tend to make impulsive decisions and spend money you don’t have during stressful times, a financial therapist can help you understand the reasons behind those behaviors. The key to reaching your long-term financial goals is developing a healthy relationship with money, and therapy can be a great way to get there.

At Honest Hour, we understand how burnout, guilt, and emotional baggage can affect your relationship with money. Our therapy team works with individuals navigating stress, identity, and financial pressure.

Curious about whether therapy is the right path for your money stress?

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