A Guest Blog by M. Beauchamp, Certified Financial Social Worker

Personal experience taught me how easy it is to get into overwhelming credit card debt and how difficult it can be to get out of it. My first experience with credit card debt happened at age twenty eight when I was working part time and was offered a credit card with a limit of one-thousand dollar and an interest rate of twenty percent.

I used the credit card to purchase many unneeded items: clothing I didn’t need; jewelry I would never wear. When I received the bill  I was in shock.

Fortunately I was able to pay my bills on time, at that time, but knowing I could afford having a credit card, I decided to get three more. I used the cards for everything: vacations, shopping, and gifts for my family.

By this time I knew I needed help. I couldn’t keep up with all my bills. I was living paycheck to paycheck. This caused great stress.  I was stalked by creditors calling my home. I didn’t know what to do. I looked for help and one of my friends  suggested I file bankruptcy.

At first I was embarrassed by the thought. I talked to a lawyer and he explained how the process worked, and I eventually made the decision to file. My husband and I had to go to several classes to learn about the process of bankruptcy and what it entails:  we couldn’t apply for credit cards or loans for seven years. On the bright side, we were able to keep our home and car.

I learned so very much from this experience. I learned that it is important to use your credit cards wisely by only buying things you truly need and not things you want but can’t pay for, without building debt and about the need to have a plan for how you are going to pay your bills.

Don’t let credit card debt be part of your life.

Now, I’m debt free and spending my money wisely and it feels good. I just recently purchased furniture with cash I had saved to pay for it. It truly feels great knowing I am being more responsible with my money.

Financial Social Worker helped me see how I can budget my money and plan for my expenses. I am going to use this knowledge to help my clients who are in debt to understand there is another and better way of living. I believe my clientswill be as satisfied as I am living debt free.

Omniomania: Shopping to Hide from your True Feelings

Guest Blog by Ashley Pharr,  Certified Financial Social Worker

The word omniomania fascinates me.  At first glance, it appears to be a name for a life-threatening disease.

But it is not, at least not life-threatening. It is a disease and could at minimum be threatening to your well-being.      It is compulsive shopping. As cited by the online dictionary, when broken down, onios is derived from Greek meaning, “for sale” and mania meaning “insanity,” creates an impression that is most times overlooked in Western society.

In Western society, compulsive shopping is often joked about and not really taken seriously, but it is like any other addiction. It poses some of the same risks drug usage poses such as added stress, fragile family relationships, failed marriages, legal problems, and a financial nightmare. So why would people choose to go out and spend above their means if they know the consequences?

With advertisements everywhere: in restaurants, on television, newspapers, magazines, billboards, and the internet; it is hard to hide from the encouragement to spend. Companies spend millions of dollars every year to get the consumer to buy their product; an added incentive, for compulsive shoppers, to spend “guilt free”.  Too often this results in maxed out credit cards and unpaid bills; a downward spiral to financial insecurity.

According to Recovery Connection, a referral network with the ability to link “omniomanics” to rehabilitation centers for the addiction, compulsive shopping is just like any other addiction, compulsive shoppers get a thrill and sense of control after making purchases. The hormones running through their body to their brains comes off like a “high” feeling; the brain makes a connection that there is power in purchasing.

Indications that there may be a problem with compulsive spending, include spending money as a result of extreme emotions (anxiousness, loneliness, or anger; buying items on credit instead of cash, feeling a rush after making purchases, having items in your closet with tags on them and that go unworn, and lying about how much you have spent. These symptoms can lead to emotional and financial challenges and mean treatment to address those issues could be helpful.

Financial Social Work motivates and supports consumers in addressing the thoughts, emotions, feelings, and attitudes associated with buying power. A few immediate actions to consider: paying off credit cards and cutting up the plastic, developing alternative habits to spending, addressing the emotional triggers that contribute to spending and differentiating between you wants and your needs.

Over the years I have helped clients address financial stress, while facing life-threatening illness. I have noticed how unburdening it has been for clients to confide in a social worker who doesn’t have any baggage related to their personal situation. While listening actively and non-judgmentally, I have been able to help patients and their family members address financial issues that have distracted them from focusing on the issues that matter the most at this precious time in their lives. Also, in light of current economic times, I feel it is essential to learn more about Financial Social Work in order to serve my clients more effectively in the present and the future.

Although I am not practicing in the field of end of life care right now, I have been drawn to helping people in another way. I had always volunteered in adult education while working as a social worker and my heart has always gone out to people who are brave enough to continue their education as adults. Gratefully, I have been able to work exclusively as a volunteer in this area over the past year, and it has reinforced my desire to help these resilient individuals succeed. This joyful work leads me to what I want to offer in this brief blog.

I confess, I have math anxiety. While I anticipated helping people with reading, writing, history, etc.. as they prepared for the GED, imagine my surprise when I was asked to help a student with math! Facing my own anxieties about tutoring math allowed me to reflect on my own experience with money. These paths were quite similar: lots of nervous feelings, uncertainty, etc.. However, slowly over time, my anxiety lessened and more peace entered my life. There were two key principles that helped along both paths: my desire to face my fears, and a belief that I was capable of learning more about things I thought I didn’t understand.

Reflecting on my past experience has led me explore how I can use my experiences to inspire, encourage, motivate and educate others.  At this point in my life helping women address their math anxiety is particularly rewarding. I’m not a mathematician or a trained teacher, but I can say I’ve seen the biggest bursts of self-confidence come forth when a student masters a mathematical concept. Often this new confidence is accompanied with the exclamation of “I can’t believe I thought that was so hard and that I was so terrible in math?”

Creating opportunities for increased confidence in math is directly linked to financial literacy for my clients. Learning how to use percentages, calculate interest, and determine area has helped my clients feel more confident in their everyday life. Now, when calculating tips at restaurants, determining the sale price of items, and understanding how interest is calculated on mortgages and car loans, they feel the inner confidence of true understanding. This quiet confidence is now part of these  women’s lives and no one can take it away from them.

I believe as a social worker that all of us can change and now, having become certified in Financial Social Work, I feel more equipped to inspire, coach, listen empathetically, and advocate for all my clients. Opening up about our fears and anxieties, whether it be math or other issues, is one way to begin our journey to lifting ourselves and our clients up to higher ground.

Surviving Potential Unemployment

Guest Blog by Elizabeth Lipscomb, LCSW, ACSW, CFSW

Fear

Everyone is prone to it.  Many jobs have been lost and more losses continue to be threatened  due to the economy.  Even state and federal governments positions are considering layoffs, as tax revenues continue to decline

Here is a survival check list you should find helpful:

Still employed:

Update and clean up your resume, then keep a copy with you – in your briefcase, in your car, in your purse – you never know who or where you will meet someone with a job opportunity.

Cut back now!  Reduce as many expenses as you can, with the understanding that this situation is temporary.  Make sure your emergency money is liquid; consider selling what you don’t need.

Reconnect with your professional references, let them know you may be looking for a new job.  Use your discretion to assure your current employer doesn’t learn of your job search.

When you feel out of control, find something that gives you a healthy sense of control even if it is small (great for cleaning closets, organizing, making lists, etc.)

Expend energy to relieve stress.  Exercise, make small home improvements, or take evening walks with family.

Avoid workplace arguments and confrontations.   More and more employers are putting emphasis on attitudes and behaviors in the workplace…make sure you shine.  If you are struggling with your attitude and morale, try to think of your positive attitude as putting on your professional coat as you walk in the office in the morning.

Step up and set yourself apart…offer to work the extra shift, take an extra call, stay late to complete an important assignment, etc…and do it with a smile!  Remember when the layoffs are decided, you want to have that little extra value.

If the layoff occurs, leave on the best terms possible as you never know what the future will bring:

• You may be considered for re-hire
• Your future potential employer will call your last employer to check you out.
• You may be working for the same people at a new employer
• Remember, people talk and word gets out.
• Begin reconnecting with professionals colleagues in your area, this is always important – know and be known.
• Take on a new task, study a new area of your field, be open to learning – the more experience and the more knowledgeable you are the more marketable you will be.

Unemployed:

Look back at your achievements and experiences – You have this most recent job experience now and that’s a plus.  Reflect on your professional and personal grow – remind yourself of your achievements when you get down.  Focusing on your successes will be much more helpful when you are preparing for job interviews.

Don’t allow yourself to fall into negative patterns of behavior such as overeating, self-isolating, negative self-talk, etc.

Keep your mortgage company and debtors informed of your circumstances,  and educate yourself on financial options available to you.

Survivor jobs are a great thing, and they are OK.  Do not let your pride get in your way if it keeps homelessness at bay.  Many seasonal or service industries hire, and odd hours help with job search and interviews search during the day.  If you can not find an employer, consider employing yourself…cut grass, babysit, clean homes or offices, pet sit or walk, personal errand business.  Use a talent you enjoy as a hobby – print up some business cards and hand them out…you may find this is a great second income when you find your new job.

Keep looking for your real job, allow time for your search and for the economy to improve.

Attend professional meetings, seminars, etc., with your resume – and smile!  Be seen and be heard.  Consider writing a professional article.

Use technology.  Connect with colleagues on Face book, Twitter, Linked in and other professional and personal networks.  Technology  has become a must have to stay connected and reachable – use it to your advantage.

Practice interviewing by having a spouse or friend interview you without telling you what they will ask!  Practice will make you more confident during your interview, which is always a plus.

Be willing to move into a sub specialty.  As the economic cycles political policies change, areas of employment change…be willing to move with it, at least in the short term.

Now that you have found a new job:

Keep smiling. Go the extra step when you feel it is appropriate. Continue to stay in touch with colleagues.  Attend professional meetings and socials to see and be seen.  Write professional articles, learn new skills, read, give talks or be a specialist in your field.

Unemployment can happen to anyone in a tough economy, the best survival skills will help get you through.  Be the best you can be in your field, be willing to expand into new areas, find support, tune up your resume, get out there and be positive.

How much time each hour, day, week, month and year do you spend worrying about your financial problems, or stressing as a result of them?

Do you accomplish anything by spending so much time so negatively?

Recently, when I was being interviewed for a magazine article on financial therapy, the writer asked me when it was too late for someone to try to change his or her financial behavior.  I was honestly shocked by that question because I know it is never too late to take back control of your money in order to regain control of your life!

Confucius said “The best time to plant a tree was ten years ago; the second best time is today.”  The same is true for each person’s journey to sustainable, long-term financial behavioral change.  Today is the day to begin.

However, what I most wish is that no one had the need to “start over.”  Why can’t we as a society:

• Have greater insight into the relationship between emotional stability and financial circumstances?
• Make teaching financial literacy a bigger priority in our schools?
• Provide greater consumer protection to all Americans?
• Be more respectful of those whose personal journeys brought them to financial ruin?
• Have more compassion for those with less?
• Do more to help parents’ role model and teach healthy financial behavior to their children?

Have we as a society really failed to learn the numerous  relevant lessons from the current financial crisis?  How much more obvious doe the importance to create financial education programs and opportunities early on in life need to be?

While the lack of widespread access on a more macro level is frustrating and disappointing, so is the failure of more individuals, on the micro level, to address their financial problems and to avoid the collateral problems of foreclosure, homelessness, depression, anxiety, divorce, hopelessness, etc.

If you have financial problems are you dealing with them, or are you avoiding them?  If you, avoiding them, do you know why you have chosen that path, rather than one which could stop the endless worry and stress which financial problems cause?

What needs to happen in your life for you to choose to become more money-wise?  If you need help, or have questions on how to begin your own personal journey to a more emotionally and financially stable future, we are here to help.  Reeta

April is Financial Literacy Month which is an excellent opportunity for everyone and anyone who works with clients, in any financial capacity, to create opportunities to teach, write and speak about any of the countless financial topics which so many Americans need to learn more about.

It is exciting to see how many groups, professions and organizations have scheduled workshops and webinars on money management topics.  At the Center for Financial Social Work we’ve schedule three very different and important webinars (see details below.)

All of these educational opportunities have value and merit, however, knowledge is only one component of sustainable, long-term financial behavioral change, so it is critical to understand and to address the other elements needed by men and women committed to creating more emotionally and financially stable futures. 

The model we have developed incorporates on-going education, motivation and support because taking greater responsibility for your money, for your life and for building a better personal and financial future is a choice which is made on a daily, if not hourly basis – one which needs constant attention and nurturing.

Financial stability is a far more personal, emotional and individual choice than it is a financial, intellectual, educational or academic pursuit which makes it clear that fostering change is a fragile but crucial process worthy of time, effort and attention.

The change process is a delicate one which begins with the recognition and acceptance for the need to change.  Once recognition is acknowledged, commitment becomes the key to success.  Unfortunately, commitment can be a very vague, large and fragile concept, without the tools and skills with which to cultivate it.

Embracing change is where and how the journey to a more money-wise future begins.  Each person arrives at recognition individually and uniquely, and once there approaches it equally distinctively, but all need a roadmap (on-going education, motivation and support) to help them to navigate forward.

As the 2010 Financial Literacy Month begins, I am hoping to join together with financial professionals of every ilk to develop alliances and programs which help men and women to take control of their money and to gain control of their lives.  My goal is to make every day one focused on financial literacy, for anyone who makes the choice to create sustainable, long-term financial behavioral change.

If today is the day you decide to make the choice to change, contact us for a “Commitment Pledge”  at reeta@financialsocialwork.com.

If you are a professional who wants do more for people with financial problems, issues or challenges, contact us to see how we can work better together.  Reeta

Center for Financial Social Work

FREE April 2010 Financial Literacy Webinars 

All begin at 2 PM ET

April 14, 2010:  Emotional Spending:  What It Is and What to Do About It

Join us to learn the signs of emotional spending, how to identify emotional spending triggers and most importantly, how to substitute healthier financial behavior personally, or with clients.

Reeta Wolfsohn, CMSW, the founder of the Financial Social Work discipline and the creator of Online Financial Therapy Support Groups will be the presenter.

April 21, 2010:  Money Speaks:  Are You Listening?

Learn how to tap into the thoughts and beliefs you have about money and its purpose in your life.  During this interactive session you will learn how to shift your money mindset to support financial health while having fun.   

Kathleen Burns Kingsbury, LMHC, CPCC will be the presenter.  Kathleen helps people master their money mindsets to create health and wealth in their lives.  She is an internationally published author, national speaker and award winning coach. 

 April 27, 2010:  Could Mastering Debt Management Bring New Meaning and Purpose to Your Life?

This session will explore the integration of traditional money management with principles of the simplicity movement and sustainable living practices, eco-therapy and socially responsible investing.

Robert Filocco, LPC, CFSW and Financial Planner will be the presenter.

Everyone’s life is profiled by their credit and FICO scores. Do you know yours?  You should because not only do these scores determine whether or not you will get the loan you need for a home, car, or other purchase, but they may prevent you from working in certain professions or from being hired for the job you want.

Your credit report  and FICO score impact all of the areas of their life, from interest rates to job search.  Many people and companies have access to them, so it is important that you know what they are seeing, and that you do everything you can to make certain their aren’t errors on your credit reports.

By law you are entitled to one FREE credit report, from each of the major credit reporting bureaus.  However, Do NOT be deceived by the many different commercials you may see on television or the internet, regarding where to go for your free report.  The ONLY official website to obtain it is at annualcreditreport.com.

We recommend you pull one of your reports every four months, rather than pulling all of them at the same time.  That will allow you to work on making corrections on each report separately.

While your credit report is always free, you must pay for your FICO score (named for the Fair Isaac Corporation in California – the company that developed the score).  FICO scores range on a scale from 300 to 850.  A 720 or higher scores assures the most favorable interest rates.  Until March 31st you can purchase your FICO score for a 30% discount, so if you have been thinking you needed to check your score this is an excellent time to do so.

We will be blogging more about Financial Profiling and credit and FICO scores, in coming weeks, because they are so very important.  Reeta

One thread that runs through the many conversations I have with men and women around the country who are struggling with financial problems and challenges is the hopelessness they feel as a result of being unable to meet their financial responsibilities.

Financial problems come in all sizes and shapes; no matter why or when they occur they are accompanied by a wide range of emotional problems which combined with the lack of financial resources, ultimately causes feelings of helplessness and hopelessness.

These feelings and reactions too often cause those experiencing them to spend all of their time trying not to think about them, rather than actively working to improve their financial circumstances.  This is because helplessness and hopelessness close the door to change.

Lets make sure that every time we have the opportunity to speak with a friend, relative, colleague or neighbor trying to make sense of bankruptcy, foreclosure, job loss, credit card or medical debt, divorce, or any of the other financial demons confronting Americans today, that we take the time to remind them that there is always hope.

Doing so will at least crack open the door to change and allow some light to shine in the dark spaces which too often keep people stuck. 

“Hope is faith holding out its hand in the dark.”  George Illes

Nothing holds as much promise as the many empty boxes on each calendar page of the new year; mornings, afternoons and evenings in which to make the choices and the changes that will determine the kind of day, week, month and year it will be.

Looking back can help us to plan ahead because the past has much to teach us about the future. Knowing what we did, or did not do, to move in the direction of our hopes, dreams and wishes yesterday or last week, enables us to avoid sabotaging our success in the future.

You may not have as much control over your life as you would like, but you may have more than you realize. As you fill in your various 2010 calendars, make sure you are spending your time and your money in ways that will improve the quality of your life.

Each day you write one page of your life story. Your story is unique and it belongs exclusively to you. As the author, are you writing the story you want to read? How would you fill your calendar if:

* Failure weren’t an option?
* How you spent your days determined how you would spend your life?
* Your future depended on the choices you make each day?
* Every day gave you the chance to improve the quality of your life?
* You were committed to creating sustainable, long-term behavioral change?

The life you are living may not be perfect, but there are many things you can do to improve it. Try doing one thing to improve your life today and let us know how it turns out.

Now that 2008 has arrived, many Americans are rethinking the “resolutions” they made at the end of 2007. Traditionally those “resolutions” fall into three categories: health/fitness, personal finances and personal/professional growth/change.

Financial problems, which began escalating in 2007, will continue to create stress for growing numbers of Americans in the coming year and beyond, so it is not surprising that more men and women have set addressing financial problems as their number one goal for 2008. It is estimated that 52% of financial resolutions are to reduce debt and 25% are to save money.

History and research have proven that people who WRITE down their goals are the most successful people. Goals remain dreams and wishes unless they are written down. Setting and writing down goals facilitates assessing their relevance; evaluating commitment; developing a plan to achieve them and measuring progress and success.

While the New Year prompts resolutions and generates motivation for them, achievement lies in the planning and the follow through. It is easy to enumerate upon the most important steps to take in reducing debt and increasing assets, but those steps mean relatively little because financial success is ultimately determined not by information and education but by each individual’s commitment, connection and understanding of why taking these steps matters and how taking them benefits him and his family.

Financial stability depends on financial behavior and healthy financial behavior begins with addressing the thoughts, feelings and attitudes which influence the final choices and decisions we make. This is the psychosocial component of money which Financial Social Work is totally dedicated bringing to all Americans in order to help each one to change how (s)he spends, saves and lives: one person, one dollar, one day and one dream at a time.