Are You in Denial About Your Money Matters?

Are You in Denial?
So what's the deal? Everyone's deal is different, actually, but experts recommend that you ask yourself some tough money questions and seek honest answers.

“It’s common for people to be in denial of a difficult situation that they feel is out of their control,” says Dr. Nancy Molitor, a clinical psychologist in Wilmette, Ill. Molitor compares this tendency to people who underreport how much alcohol they drink. “Part of us wants us to be better than we are.”

To determine whether you’re in denial of a difficult financial situation, Molitor says you’ll have to ask yourself a few questions:

When you have to make money decisions, do you feel a surge of adrenaline, physical aches or pains?
Do you have a sense of dread when it comes to managing money? Do you have a visceral or intense reaction or shut down and tell yourself you’ll deal with bills tomorrow or next week?
Do you have a past history of financial trouble? Do you chronically make late payments or have you made multiple loan modifications?
Did you grow up in a family where money was used as a weapon or a means to buy love?

If you answer "yes" to more than one of these questions, you might want to get help. Ask a financial planner, a family member or spouse who reacts less emotionally to money, or even a therapist. And learn as much as you can about money and personal finance. When it's less mysterious, it's less frightening and you'll be more likely to take control. Hey, that's what MainStreet is here for!

Still, even though it is stressful, many of those surveyed in the Heartland survey said that today’s economy presents them with more opportunities to improve their standard of living than their parents had when they were younger. About 42% said they have more opportunities to improve their standard of living.

Improve yours by ditching money denial.