Ep # 136 - Mastering Your Money Mindset for a Fulfilling Retirement with John Hankins
The episode delves into the nuances of financial therapy and its importance in retirement planning. John Hankins, a financial therapist, joins host Joe Curry to explain the intersection of emotional well-being and financial planning. They explore how financial therapy can help individuals and couples navigate anxiety and issues related to money, particularly when transitioning to retirement. The conversation forms a bridge between understanding one's relationship with money and making informed, value-driven financial decisions in one's later years.
Key Takeaways
Financial therapy combines elements of financial planning and mental health to address individuals' and couples' anxieties about money.
Understanding one's relationship with money is crucial in developing a plan that alleviates anxiety and ensures a stable financial future.
Values-based retirement planning can lead to a fulfilling post-retirement life.
Communication about finances is essential, both within families and with professionals, to mitigate anxiety and make informed decisions.
Ideas Worth Sharing
"Financial therapy helps you make money a source of positive energy, not a drain." - John Hankins
"Understanding your relationship with money is key to a successful financial plan." - John Hankins
"Values-based planning is crucial for a fulfilling retirement" - Joe Curry
Resources & Links from the Episode
1. John Hankins’ Website – John provides financial therapy services and shares insights on managing financial anxiety, money stories, and the emotional side of financial planning.
o 🔗 Financial Therapy by John Hankins
2. John Hankins’ YouTube Channel – John shares educational content on financial therapy, behavioral finance, and strategies to improve your relationship with money.
o 🔗 John Hankins, Financial Therapist on YouTube
3. Financial Therapy Association (FTA) Directory – A resource for finding financial therapists, whether you’re looking for professionals with a background in financial planning or mental health.
o 🔗 Financial Therapy Association Directory
4. Retirement Planning Simplified Website – Access show notes, additional resources, and free retirement planning tools.
o 🔗 Retirement Planning Simplified
Financial Therapy: Understanding Your Relationship with Money
Many of us struggle with money—not just in managing it, but in our emotional relationship with it. We might save obsessively yet feel constant anxiety, or earn substantial incomes while battling spending addictions. These issues often stem from deeper emotional connections to money rather than simple financial literacy gaps. This is where financial therapy comes in.
What is Financial Therapy?
Financial therapy bridges the gap between traditional financial planning and mental health services. It recognizes that our money decisions are often driven by our "money story"—experiences and messages about finances we've absorbed since childhood.
As John Hankins, a certified financial therapist, explains, "You have a relationship with money. Let's make it a good thing and a source of positive energy in your life, not a drain."
The Financial Therapy Association, established in 2009, represents professionals from both financial planning and mental health backgrounds. While financial planners help with the technical aspects of money management, financial therapists address the emotional components that often sabotage even the best financial plans.
When Might You Need Financial Therapy?
Many situations can benefit from financial therapy:
Anxiety about retirement: The transition from saving to spending can create significant stress, even for those with substantial assets.
Couples with conflicting money values: When partners have different spending habits or financial priorities, it often leads to relationship strain.
Persistent unhealthy money behaviors: Whether it's compulsive spending, hoarding wealth, or risky investing to chase losses.
Identity crises during financial transitions: Retirement, inheritance, or career changes can trigger questions about self-worth tied to money.
Difficulty implementing sound financial advice: If you've received excellent financial guidance but can't seem to follow through.
The Financial Therapy Process
Unlike traditional financial planning with concrete timelines and deliverables, financial therapy offers an open-ended space to explore your relationship with money. The process typically involves:
1. Creating a safe space to discuss money: Breaking the cultural taboo around discussing finances openly.
2. Uncovering your money story: Examining messages about money from childhood, family, and society.
3. Connecting money behaviors to values: Understanding what truly matters to you and how money can support those values.
4. Developing new money perspectives: Replacing unhelpful money narratives with healthier alternatives.
5. Building practical financial skills: Learning techniques for managing money in alignment with your values.
Finding a Financial Therapist
The Financial Therapy Association maintains a directory of qualified professionals, including both mental health practitioners with financial training and financial planners with therapeutic skills. Look for someone who matches your specific needs—whether that's overcoming spending challenges, navigating retirement anxiety, or healing financial trauma.
Financial therapy reminds us that money is more than numbers on a spreadsheet—it's intertwined with our identity, security, and relationships. By addressing both the practical and emotional aspects of our finances, we can develop healthier relationships with money and use it as a tool to support what truly matters in our lives.