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Episode 142. Empowering Your Financial Future: A Conversation with Laura Corbiani
Welcome back to The Innovative Therapist Podcast! Today, we’re diving into part two of my conversation with financial expert Laura Corbiani. If you missed part one, be sure to check it out, as we covered essential topics like money, power, and common mindset blocks around finances. This episode is all about tangible actions to become more financially empowered—because who doesn’t need that?
We’ll discuss key topics like:
- Why and when you might want to hire a financial advisor
- Financial wellness basics
- How to build an emergency fund
- How to optimize your money to create more financial freedom
Let’s dive in!
Overcoming Financial Anxiety
Talking about money can be overwhelming. Many people feel like they need to know everything before they even start, leading to avoidance and anxiety. If you’ve ever felt this way, you’re not alone. Financial concerns can exist even when someone is in a good financial position. The key is shifting from judgment to curiosity about your financial health.
The Importance of an Emergency Fund
One of the most crucial building blocks of financial wellness is an emergency fund. This is a cash cushion set aside in a savings account, separate from investments, to cover unexpected expenses. Here’s a general guideline:
- Single-income households: Aim for six months of living expenses.
- Dual-income households: Aim for three months of living expenses.
Keeping this money in a separate savings account (instead of a checking account) can help prevent accidental spending. Automating a small amount to transfer weekly or monthly can make building this fund easier.
Maximizing Employer Benefits
If you have access to employer benefits, it’s important to take full advantage of them. Some key areas to explore include:
- Retirement Plans: Many employers offer 401(k) matching—be sure to contribute enough to get the full match!
- Disability and Life Insurance: These benefits are often overlooked but can provide essential financial security.
- Health Savings Accounts (HSA): If you’re on a high-deductible health plan, contributing to an HSA is a great way to save for medical expenses tax-free. Unlike Flexible Spending Accounts (FSA), HSAs don’t have a “use it or lose it” policy, allowing you to save for future healthcare costs—even in retirement.
The Power of Investing
Investing can feel intimidating, but it doesn’t have to be complicated. Target-date funds are a great place to start—they adjust risk levels based on your projected retirement year. Investing consistently, even in small amounts, can lead to long-term financial security.
The Gender Pay Gap & Negotiation
One of the biggest financial challenges women face is negotiating for higher pay. Research shows that women tend to apply for jobs only when they meet 100% of the qualifications, whereas men apply when they meet about 60%. Additionally, women negotiate their salaries less frequently, which can lead to earning significantly less over their careers.
A few key takeaways:
- Ask for what you’re worth: Negotiating your salary can add up to over $1 million in additional lifetime earnings.
- Be creative: If salary negotiations are limited, consider negotiating for more time off, professional development funding, or other benefits.
When to Hire a Financial Advisor
Not everyone needs a financial advisor, but here are some situations where hiring one might be beneficial:
- You’re juggling multiple income sources or investments.
- You’re going through a major life transition (inheritance, job change, starting a business, etc.).
- You want expert guidance on optimizing your financial strategy.
When choosing an advisor, ask if they are a fiduciary, meaning they are legally required to act in your best interest. You can also ask, “How do you get paid?” to understand whether they work on commission, a flat fee, or a percentage of assets managed.
Building a Financially Empowered Life
Financial satisfaction isn’t just about the numbers—it’s about feeling in control of your financial decisions. A great exercise is to reflect on when you’ve felt financially stable and what factors contributed to that sense of security.
If you’re an entrepreneur or therapist looking to create more financial freedom, consider:
- Raising your rates to reflect the value you provide.
- Diversifying income streams in a way that aligns with your strengths and passions.
- Ensuring your money is working for you through investments rather than sitting stagnant in cash.
Final Takeaways
- Start small: Financial empowerment happens through small, consistent steps.
- Knowledge is power: The more you learn, the more confident you’ll feel in making financial decisions.
- Seek support: Whether through an advisor, a financial accountability partner, or a community like Laura’s Finances & Feelings group, talking about money with trusted individuals can be incredibly empowering.
Financial freedom isn’t just about wealth—it’s about having choices, security, and the ability to live a life that aligns with your values. Take the next small step today, and future-you will thank you!
Resources Mentioned in This Episode
Want to explore new income streams that align with your values? Download my free guide: pages.drshawnhondorp.com/income
Creative ideas for income for Therapists and Helpers Free Guide: Grab it for free here.
Financial Satisfaction Surveys:
The Financial Satisfaction Survey is a self-assessment of how you feel about various aspects of your current financial life. The Personal Insights Survey delves into your past financial experiences and explores how they’ve influenced your perspectives and preferences.
These materials help people reflect on their financial history and current financial feelings. This understanding can lead to setting more meaningful financial goals and identifying any underlying money stories that may impact your financial satisfaction. With these insights, you can make more informed decisions about investing and managing your finances.
- Financial Satisfaction Survey (working)
- Financial Satisfaction Survey (retired)
To learn more about Laura’s work and how you can connect with her, check out her website here.
Disclaimers: This blog and podcast are for informational and educational purposes only. They do not constitute medical or mental health advice and are not a substitute for professional consultation or treatment.
This podcast is for general purposes only and not legal, financial or tax advice. For individual advice, consult your financial advisor, accountant, and/or legal counsel.
Investment advisory services offered through Equita Financial Network, Inc. an investment adviser with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Equita Financial Network also markets investment advisory services under the name, Astraea Wealth Management LLC.