How to Differentiate Financial Trauma from Money Stress
You may have never heard the term financial trauma. I hadn’t either—until I began researching why, despite years of investing in therapy, self-help books, courses, coaching, and mentoring, I still wasn’t financially free. I wasn’t consistently receiving money, securing recurring income, or achieving financial stability.
One day, towards the end of the pandemic, because although I was a spiritual entrepreneur I was still struggling with money, I felt guided by Divine Source to shift away from my marketing career and instead share my financial trauma journey with other heart-centered female entrepreneurs like me and how I have been healing from it by practicing my signature F.A.B. (Feel, Act, and Be) MoneyScripting™ Method of Manifesting Financial Freedom. This calling led me to research extensively financial trauma and financial freedom which lead me to begin writing my upcoming book.
What I discovered was that financial psychologists and therapists use the term ‘financial trauma’ to describe the deep emotional and psychological damage caused by significant negative financial incidents. If, like me, you’ve invested considerable time, money, and resources into becoming financially free, manifesting abundance, and building a thriving business without seeing results, financial trauma could be the giant obstacle on your path.
In this article, I’ll share my personal story of financial trauma, loss, and healing to help you determine whether financial trauma—not just the daily money stress of paying your bills and managing your income and expenses —might be holding you back. My hope is to illuminate the differences between financial trauma and money stress so that you can feel empowered to take the first steps toward healing and manifesting financial freedom.
What Is Financial Trauma?
My financial trauma developed from the negative financial events I suffered through like, being born into poverty, living in government subsidized housing, living from the government welfare system, food stamps and Medicaid.
Living with the constant reminder that there was never ‘enough.’ That is there was never enough food, space, or money. That upbringing caused long-lasting negative emotional and psychological distress. If you have experienced prolonged poverty, devastating financial losses, childhood financial insecurity, or experiences like bankruptcy, homelessness, foreclosure or losing a business then you may have some financial trauma.
Unlike everyday money stress, which is a temporary reaction to financial challenges like paying a big bill or a sudden unexpected expense, financial trauma leaves a lasting mark. It’s like a deep wound in your skin: while the surface may eventually heal, the scar remains, affecting how you feel, act, and are around money. Financial trauma often leads to persistently avoiding bills, anxiety over closing a client sale, and fear that you will not have enough clients sales or be able to receive enough money to pay your overhead, which disrupt your ability to make sound financial decisions or pursue financial goals.
What caused my financial trauma can be the cause of financial trauma.
For me, financial trauma started long before adulthood—it was generational. I was born into poverty, as were my mother and grandmother before me. Growing up in a constant state of financial instability ingrained a deep sense of fear and insecurity about money. This cycle continued into my adult life, setting the stage for a series of financially traumatic events.
One of the most defining moments came during the financial crash of 2008. At the time, I owned a real estate financing business. When the market collapsed, I was forced to close my business, lay off employees, and confront overwhelming debt—both business and personal. Shortly after the landlord of my office locked me out for failing to pay rent, my stress levels spiraled out of control. The physical and emotional toll landed me in the emergency room.
Doctors admitted me to the intensive care unit, where I stayed for nine days while they struggled to figure out what was wrong. I later learned the root cause was stress—financial stress so severe it nearly killed me. While I survived the hospital stay, I was left with a $250,000 hospital bill because I had no health insurance, and I had to declared bankruptcy for the second time in my life. The financial burden of medical bills that led to bankruptcy deepened the wounds caused by financial trauma.
How Financial Trauma Differs from Money Stress
It’s crucial to distinguish financial trauma from money stress because the two have vastly different impacts and solutions.
Financial Trauma
• Rooted in significant, life-altering financially traumatic incidents (e.g., bankruptcy, prolonged poverty, foreclosure, business closing).
• Leaves long-lasting psychological wounds.
• Can impacts mental health, relationships, and overall well-being.
• Can lead to money and bill avoidance, fear, or destructive money behaviors.
Money Stress
• Temporary worry or anxiety about specific financial issues (e.g., paying a bill, unexpected expense).
• Situational and short-lived. (e.g., temporary slow market, unexpected bill.)
• Motivates problem-solving or temporary adjustments.
• Resolves once the financial challenge is addressed.
For example, a heart centered female entrepreneur may experience money stress when she gets hit with the unexpected expense of buying a new computer because your old one no longer works. However, someone with financial trauma might avoid getting a new computer and might try to fix an old one because the situation triggers debilitating fear or a sense of helplessness.
The Impact of Financial Trauma
Financial trauma doesn’t just affect your finances; it infiltrates every aspect of your life. After my hospital stay, I developed chronic irritable bowel syndrome (IBS), which was often triggered by financial stress. I spent years visiting doctors and specialists, trying to manage the physical symptoms, but I believe that the root cause of my health issues may very well have stem from financial trauma.
Looking back, I see how financial trauma shaped my decisions, relationships, and even my ability to dream big. It wasn’t just about the money—it was about feeling powerless, stuck, and unworthy of financial freedom.
Recognizing Financial Trauma in Your Life
If my story resonates with you, it may be worth reflecting on whether financial trauma is impacting your life.
Here are some signs to look for:
• A significant financial loss that still haunts you.
• Paralyzing fear or anxiety about money.
• Repeated cycles of financial instability, despite your best efforts.
• Chronic stress-related health issues tied to financial worries.
Recognizing financial trauma is the first step toward healing it. If you can relate to my stories and you recognize these patterns in your life, know that there’s hope.
Why Healing Financial Trauma Matters
Healing financial trauma isn’t just about improving your bank balance—it’s about reclaiming your inner peace, confidence, and sense of security. Left unaddressed, financial trauma can keep you stuck in a cycle of scarcity and stress.
Through my journey, I developed my signature F.A.B. MoneyScripting™ Method which I believe is a powerful approach to help heart centered women entrepreneurs heal financial trauma, rewrite limiting beliefs about money, and manifest financial freedom. This method has been transforming my life and the lives of other heart-centered female entrepreneurs.
Take the First Step
Are you ready to break free from the grip of financial trauma and start your journey to financial freedom?
If my story resonates with you, I invite you to:
1. Reflect on your own experiences with financial trauma.
2. Feel free to take the Financial Trauma Questionnaire I created by clicking here:
These questions will help you identify whether financial trauma or money stress might be affecting your life.
Let’s start the conversation and begin the journey to healing together. Share your thoughts in the comments below and remember that you can get into the energy of manifesting by visiting FABpreneurs.com
Learn more about our supportive community of heart-centered women and the many resources we have to help you heal financial trauma by visiting: https://www.facebook.com/groups/financiallyfreefabpreneurs
REMEMBER your financial freedom starts with your commitment to heal.
