One of the most difficult topics to talk about in therapy is our relationship with money. Financial trauma is real and poorly understood. It is not just about having enough money but more about understanding the root fears and core beliefs about money that cause suffering and distress.

While money is relevant to everyone, a particular population that I work with in my practice are women entrepreneurs, artists, and leaders who are at their best when working on their own creative and professional endeavors. These women often seek therapy when they are blocked in fulfilling their potential because of an unbalanced relationship with self-worth and money.

What is Financial Trauma?

Financial trauma arises from experiences of financial instability, scarcity, or loss that impact emotional well-being. It comes in many forms, including:

1. Poverty: Lack of sufficient money to pay for life essentials.

2. Job Insecurity: Not having reliable and regular income.

3. Business Insecurity: Characterized by entrepreneurial challenges.

4. Intergenerational Trauma: The impact of major financial losses and gains over generations, including loss of homes, businesses, legacy burden of intergenerational wealth, etc.

5. Family Trauma: Issues such as divorce, abusive and codependent relationships, financial impact of illness, family conflict and secrecy around distribution of money and inheritance, or misuse of money.

6. Societal Trauma: Events like pandemics, economic cycles, or war.

The emotional toll of financial trauma often manifests as anxiety, shame, or avoidance behaviors—such as refusing to look at bills or delaying critical business decisions.

Why EMDR Can Help

Eye Movement Desensitization and Reprocessing (EMDR) is a proven psychotherapy method originally designed to address PTSD but now widely used for other forms of trauma, including financial trauma. It helps reprogram negative emotions and beliefs around money by reprocessing painful memories and shifting the emotional charge associated with those experiences.

How EMDR Works

EMDR therapy involves eight phases, guiding individuals to reprocess traumatic memories in a safe and structured environment. Here’s a simplified overview:

1. History Taking: Understanding past financial challenges and their impact.

2. Preparation: Building coping skills to manage distress.

3. Assessment: Identifying specific financial memories causing distress.

4. Desensitization: Using bilateral stimulation (e.g., guided eye movements) to reduce the emotional intensity of those memories.

5. Installation: Reinforcing positive beliefs, such as "I am capable of financial stability."

6. Body Scan: Ensuring residual tension related to financial trauma is resolved.

7. Closure: Returning to emotional equilibrium at the end of each session.

8. Reevaluation: Reviewing progress and addressing lingering concerns.

Exploring Your Money Story

The first step in doing this work is to look at your own money story, starting with your family of origin and the lessons you learned growing up about the value of money. There is a saying that money can’t buy happiness, but a family’s relationship to money can tell you a lot about its security and resilience. Was there a scarcity mindset even in the midst of plenty? Was there a sense of abundance and generosity, even if there was no financial wealth?

Addressing Core Negative Beliefs

Through EMDR, we identify life events that activate feelings of distress around money. These events are often connected to core negative beliefs, such as:

• "I will never have enough."

• "I am not deserving of wealth and abundance."

• "I am a bad person for not having enough money or for having too much money."

• "I will be taken advantage of."

EMDR starts by activating a maladaptive memory and processes that memory with bilateral stimulation, so that a new adaptive association and belief is formed.

Stories of Transformation

The following examples are composites based on common themes observed in therapy, ensuring client confidentiality while illustrating the healing process.

Case Study: Sarah’s Journey to Financial Empowerment with EMDR

Sarah, an entrepreneur and founder of a health and wellness clinic, felt overwhelmed by the financial stress of managing her business. Her anxiety had escalated to the point of experiencing insomnia and panic attacks.

Through EMDR therapy, Sarah uncovered deeply rooted negative core beliefs about her self-worth and financial security, which stemmed from earlier life experiences. She had endured a high-conflict divorce and was excluded from a family inheritance, leaving her with the belief that she was unlovable and incapable of managing her financial well-being.

By processing these painful experiences with EMDR, Sarah was able to transform her beliefs about her worthiness. This shift not only improved her relationship with money but also boosted her confidence in running her business. As a result, she gained clarity about her money mindset and developed the courage to pursue new business opportunities, expanding her horizons and reclaiming her sense of empowerment.

Sarah’s journey highlights the transformative power of EMDR in addressing financial trauma, enabling individuals to rebuild self-esteem and achieve greater personal and professional success.

Case Study: Lisa’s Journey to Healing Financial Trauma with EMDR

Now, let’s look at Lisa, a writer and mother of two children, who dreamed of a creative career to support her family.  Instead, she found herself paralyzed by writer’s block and financial guilt, berating herself for not being a better provider. These feelings left her anxious, withdrawn and unsure of her future.

Through EMDR therapy, Lisa uncovered the roots of her financial guilt: a childhood marked by financial instability and shame. As the eldest child, she felt responsible for her family’s financial struggles. One pivotal memory involved being shamed about the cost of dance lessons that she pleaded for as a child, which left her believing her creative pursuits were selfish and unworthy.

EMDR helped Lisa process these painful experiences and reframe her beliefs. She replaced the narrative that she was a financial burden with the understanding that her creativity was valuable. As her writer’s block lifted, she set achievable financial goals, pitched higher paying publications, and explored new opportunities like teaching workshops.

Lisa’s journey shows how EMDR can heal financial trauma, transforming self-esteem and professional life. Today, she earns an income through her passion and models resilience for her children, proving that healing is possible.

Steps Toward Financial Healing

If financial trauma resonates with you, here are some steps to begin your healing journey:

1. Acknowledge the Trauma: Recognize how financial stress impacts your life and decisions.

2. Seek Support: Consider EMDR therapy or financial coaching tailored to your needs.

3. Create Safe Spaces: Join communities of women entrepreneurs, leaders, or artists who share similar challenges.

4. Celebrate Wins: Acknowledge small victories in your financial journey.

Conclusion

Financial trauma doesn’t have to define your path. Through EMDR and intentional support, women entrepreneurs, leaders, and artists can break free from limiting beliefs, embrace their worth, and achieve financial empowerment. The journey isn’t just about recovering from the past; it’s about creating a thriving future. Reach out to New Pathways Therapy to learn more about EMDR.