When we experience financial shame, it can make it hard to ask for help, learn about money, or take necessary steps to improve financial well-being.Four things that help alleviate shame: personal vulnerability, critical awareness, reaching out, and speaking shame.

Don’t Let Shame Stop You from Asking for Help

<ul><li>Traditional wisdom in the world of personal finance dictates that no one should spend more than 30 percent of their income on housing.</li><li>However, in high-cost-of-living areas, spending 30 percent or less on housing is laughable</li><li>Not only are these budgeting categories outdated and unrealistic, they also don't make room for the reality that people want to enjoy life.</li></ul>

No Money To Enjoy Life

We know we should spend less than we earn and save for the future, but many people find it really hard to do thatAn individual's relationship to money and the emotions it brings up starts when we're young.Exercise: Think about how money makes you feel.Document how you feel when you're shopping online,  sending digital cash to a friend for drinks, opening bills, or getting your paycheck.

The Way Money Makes Us Feel

Financial literacy - the ability to understand how money works in your life - is considered the secret to taking control of your financesMost of our decisions around money are emotional; no amount of nitty-gritty knowledge about interest rates will change that.

Spending Behaviours Are Driven by Emotions and Not Logic

<ul><li>Self-compassion is about extending grace to yourself using three elements: self-kindness, common humanity, and mindfulness</li><li>Unlike personal finance advice that chides individuals for messing up, this helps folks be easier on themselves</li><li>To see how it works in practice, imagine you were late on a credit card bill. Take a deep breath and realize it's okay.</li></ul>

Practice Financial Self-Compassion

<ul><li>When you are working on creating a healthy relationship with money, don’t forget to pause and give yourself credit.</li><li>Research has found that the more frequently we experience a sense of progress, like a "small win," the more likely we are to continue that positive behaviour.</li><li>The more we celebrate those kinds of wins, the more it confirms that we can all be good with money.</li></ul>

Creating A Holistic Life Using Your Money

The emotional aspect of money is never discussed in financial planning.

A financial therapist on how emotion, not logic, drives most decision-making.

Understand yourself and those around you.

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Psychology

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