Most specialized training systems around personal finance and budgeting assume that if an individual is provided with tools and information, they will then make the best choices for their investments and financial health and reach their financial goals. However, financial health is similar to our physical health in that even if we learn all about nutrition and fitness, and even sign up for a gym, this doesn’t guarantee that we will actually eat properly, lose weight, or get in shape, due to psychological factors.
There are other financial beliefs that will drive our financial behaviors, limiting our ability to benefit from financial education and information alone. Research has shown that 75 percent of Americans are unable to fully engage with their own finances, experience avoidant behaviors around their financial situation, and cannot actively engage with it. If you are in that 75 percent, you may benefit from exploring this with a coach or therapist trained in financial psychology and financial counseling.