February Membership Meeting Write-Up — Kirstin Carl, M.S., LMFT

The Psychology of Money and Your Practice
presented by Roger Schwarz LMFT, JD

As I prepared to experience this month's intriguing talk on "Psychology of Money and Your Practice" by Roger Schwarz, J.D., LMFT, I felt grateful and encouraged that he was bringing such an important topic to the table. As clinicians, we may be naturally inclined toward healing, nourishing, and giving to others, while not necessarily toward making sure that our own needs are met.

Roger's warm and inviting presence instantly connected me with him, and kept me riveted on his teaching. From his first to his last word, he delivered tantalizing and relevant bites of knowledge.

He started off by exemplifying his own history of learning the hard way about money after being affected by his mother's way of handling finances. He asserted each of our development of our relationship with money is impacted and shaped by our caregivers' relationships with money, including what financial behavior they modeled for us.

Roger continued by addressing our attachment to money. He pointed out that in our roles as healers, without examination, our passion for healing can often overshadow our need to make a living. He also pointed out that our attachment to money includes the categories of earning, saving, spending, investing, and planning. Additionally, he asserted that a healthy attachment with money is essential to our work. As children, we develop a healthy or unhealthy attachment to money that relates to how we conduct our adult behavior with money.

Then Roger famiarized us with the money quiz as a useful tool in helping us identify which one of four money beliefs we operate from: Money avoidance, money worship, money status, and money vigilance. The quiz can be found on the website www.learnvest.com. Money avoidance is characterized by a belief that one does not deserve money; fear; anxiety; and often not knowing what is in one's accounts. Money worship is characterized by belief in the power of money to solve problems, and a tendency to put its value on a pedestal; gambling; and workaholism. Money status is characterized by a belief that money is a symbol of status and standing in society; excessive risk-taking; competitive material acquisition; and overconsumption. Money vigilance is characterized by secrecy about finances; distrust of the intentions of others; and excessive frugality and saving. He then offered the idea that as therapists, it is part of our job to help our clients to identify their money beliefs, and to help sensitize them to their relationships with money.

He went on to address money in the conduct of private practice, including categories of well-being such as fee setting, collecting, and billing. He offered mindfulness meditation and self-awareness as helpful for therapists in focusing on how they bring money into the therapy room. He mentioned that part of self-awareness is determining what one's psychology of money is. He proposed the money quiz as a tool for assessing a client's issues with money. He also encouraged therapists to explore a client's childhood money modeling, including patterns such as workaholism and chronic unemployment. Furthermore, he stated that a client's money issues can be applied to clinical treatment of other problems.

Also as part of addressing money in the conduct of private practice, Roger addressed aspects of fee setting such as whether or not to offer a sliding scale, including the minimum fee, and valuation of services. In addressing collection of fees, he noted that being a creditor to a client is a dual relationship and is therefore unethical. He touched on using a client's assets versus liabilities as one way to determine a client's fee.

Roger went on to address factors in making a decision about whether or not to start a private practice. He discussed the risks and stress inherent in private practice, as compared to being employed at an agency or group practice. He mentioned forms of private practice, including sole proprietorships, corporations, and partnerships. He addressed factors in the finances of private practice, including taxation and liability. He also mentioned the legal set-up and maintenance costs of forming a corporation, as well as the costs of filing a corporporate income tax return.

In addressing factors in deciding whether or not to form a private practice, Roger discussed insurance panels. He discussed the weighing of lower fees versus steadier referrals for in-network therapists, as compared to out-of-network therapists. He also discussed ways to collect passive income, such as being a supervisor, which involves the marketing abilities of your supervisees; and also such as renting a suite, where colleagues rent office space from you.

While at different points on our career journeys, attendees found the presentation to offer highly relevant information that can be immediately applied in our offices.

Kirstin Carl, M.S., LMFT, has a private practice in Encino, specializing in trauma, faith-based therapy, and adolescents. Practicing for over 10 years, she is passionate about her work. Currently seeking certification in Emotionally Focused Couples Therapy, as well as participating in training on Voice Dialogue Therapy, she remains strongly committed to her development. You can reach her through her website kcarlmft.com, or at 818.593.9047.