Who is a financial coach – and how can they help?

A financial coach is a specialist who helps his clients in the field of personal finance planning and in understanding and solving the problems through which they ineffectively manage their money. He helps clients build and implement good habits and a healthy approach to money, supporting them in creating a financial management strategy.

The economic situation is a key area affecting mental health. According to the “Stress and Work” report, already 75% of surveyed employees and employers feel stressed by inflation. In response to the growing need for support in this area, a financial coach has just joined the ranks of HearMe’s specialists, who can provide assistance to those in emotional crisis caused by, among other things. anxiety about inflation or problems with repaying rising loan installments, as well as support in other psychological problems related to the financial sphere.

Finance and mental health

The stress that has accompanied Poles in recent months is having as bad an effect on quality of life as the rising cost of living. It makes itself known in many ways, mostly affecting several spheres of life at once: from mental and physical health to relationships with loved ones.

Symptoms of financial stress can include:

• Insomnia (which currently affects as many as 41.96% of employees and employers),
• depression
• anxiety,
• Appetite disorders, indigestion,
• conflicts in personal and professional life,
• Making ill-considered financial decisions based on emotions, such as fear,
• Procrastination (constantly postponing) or avoiding making decisions,
• Decreased productivity(44% of surveyed Poles estimate that poor mental health reflects negatively on their work).

What to do when financial problems overwhelm us?

Feelings of anxiety can be a driving force behind financial difficulties, not just a side effect of them. Dr. Prudy Gourguechon, a psychotherapist and doctor of psychiatry, described the “vicious cycle of anxiety and avoidance” in an article for Forbes. In it, he explains that the need to create a realistic financial plan can stir up emotions that prevent a rational approach to the task: “Just thinking about it makes your anxiety level soar – because you’re afraid of whether you’ll be able to face reality – for example, the fact that you can’t put anything aside for your children’s education. This fear leads to avoidance. You postpone tasks and run your thoughts away from problems. At this point, anxiety levels suddenly drop, giving incentive to continue avoidance. Such a cycle repeats itself many times.”

How to break this vicious cycle? England’s Mental Health Foundation is encouraging people to face the difficult emotions associated with financial receivables. The first step is self-reflection. The following questions are worth asking:

• Do I often feel anxious at the thought of repayment?
• Am I ignoring calls from lenders?
• When I see an incoming call from an unknown number – do I ignore it thinking it might be related to my debt or an unpaid bill?

MHF recommends seeking help if the answer to any of these questions is “yes.” This help can range from working on your own with self-help guides to turning to organizations and foundations that support people in debt. Some companies provide support from a financial advisor or coach as an employee benefit.

How can a financial coach help?

Before enlisting the help of a financial coach, it’s worth understanding what it won’t cover: unlike a financial advisor, a coach doesn’ t give investment or financial advice and doesn’t advise on at least a credit vacation or a choice of financial products.

The assistance of a financial coach allows you to:

1) Better coping with stress or emotional crisis, the source of which is the financial situation.

2) Determine how our personality and beliefs affect the achievement of financial goals.

3) Set meaningful, healthy financial goals and develop a plan to achieve them.

4) Understand and avoid psychological pitfalls (such as making financial decisions in emotion).

5) Diagnose the psychological profile of financial identity and attitudes toward money.

6) Implement habits that will make it easier to build a stable financial situation and achieve goals.

7) Discovering how money positively and negatively affects emotions and actions, and how to manage this constructively.

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