Seeking Financial Guidance Without the Embarrassment – NerdWallet

Rahkim Sabree, not just a mere financial therapist but also a distinguished accredited financial counselor stationed in the vibrant Hartford, Connecticut locale, dedicated his 20s to materialize his ambition of homeownership. His perseverance bore fruit at the ripe age of 26, marking the commencement of his journey as a homeowner.

However, the glow of this achievement dimmed somewhat when Sabree encountered a financial guru online who starkly criticized the notion of home purchasing by the youth, favoring the idea of renting instead. This perspective sowed seeds of doubt and introspection in him regarding his decision.

Sabree, now 34, reflected on the emotional tumult and the daunting feeling he experienced, especially coming from a background where homeownership was a far-fetched dream. The disheartening online rhetoric surrounding his proud accomplishment was anything but encouraging.

Given this background, Sabree, amongst a vanguard of new-age financial experts imbued with a deep understanding of financial therapy and trauma-informed training, now embarks on a mission to eradicate “financial shaming” prevalent in online spaces.

This online world, as noted, is unfortunately rife with self-proclaimed monetary advisors who don’t shy away from hurling derogatory terms such as “stupid” or “idiot” towards individuals, based on their financial choices or predicaments. Such harsh demeaning can severely affect one’s self-worth and may lead to a counterproductive avoidance of engaging with one’s financial realities, ultimately impeding personal financial growth, as articulated by Shannah Game.

Shannah Game, the vibrant host behind “Everyone’s Talkin’ Money” podcast and a certified financial planner hailing from Asheville, North Carolina, sheds light on the inadequacy of traditional financial advice. She pinpoints how such advice oftentimes glosses over systemic barriers, unfairly attributing financial misfortune solely to individual failures. Game advocates for a conversational shift towards inclusive and empathetic language, recognizing the deeply personal and varied financial journeys experienced by different individuals.

In pursuit of financial advice that does not foster shame but encourages positive financial engagement, here are some strategies.

David Peters, a tax practitioner and financial advisor based in Richmond, Virginia, decries the rigidity often found in traditional financial planning, such as the widely cited 50/30/20 rule. This rule, advocating for a division of after-tax income into specific percentages for needs, wants, and savings respectively, may not be universally practical, especially for individuals in high-cost living areas or modest incomes.

Peters encourages a personalization of budgeting strategies to better fit individual financial situations, highlighting that following a one-size-fits-all agenda might not only be implausible but could also deter from financial progress. He suggests setting attainable goals, tailored to personal circumstances, that could include gradually increasing savings percentages or managing debt repayment alongside savings contributions.

Promoting an environment where individuals feel comfortable sharing their fiscal errors can lead to more inclusive and constructive dialogues around money management, proposes Game. She observes a societal proclivity towards financial perfectionism, which only adds unnecessary pressure. By discussing financial hurdles and setbacks openly, individuals can foster a supportive network that celebrates learning from mistakes rather than chastising them.

Celebrating even the smallest of financial achievements can make a significant difference in one’s fiscal confidence and well-being. Olivia Lima, a CFP at Abundo Wealth in Sioux Falls, South Dakota, speaks to the empowering effect of recognizing every financial win, no matter its size. Keeping track of these victories helped her maintain motivation and perspective during her journey towards financial stability.

Lima underscores the importance of developing a budgeting approach that focuses on empowerment rather than restriction. By framing budgeting around the idea of making conscious decisions about how to allocate resources, individuals can create a financial plan that aligns with their values and aspirations, be it travel, home improvements, or other personal goals.

In today’s digital age, numerous financial therapists, infused with a trauma-informed approach to personal finance, are diligently working towards demystifying the stigma around discussing money matters. Sabree himself draws inspiration from peers who offer compassionate support and guidance devoid of judgment for past financial decisions or circumstances, crucial for nurturing a productive and positive financial mindset.