Market Performance: January 6, 2024.

The S&P 500 ended Friday modestly higher, but all three of the major averages snapped a nine-week winning streak following a stronger-than-expected jobs report.

The broader index rose 0.18% to end at 4,697.24, while the Nasdaq Composite added 0.09% to finish at 14,524.07. The Dow Jones Industrial Average ticked higher by 25.77 points, or 0.07%, settling at 37,466.11.

The three major averages notched their first negative week in 10, with the Nasdaq suffering the biggest decline at 3.25% — its worst weekly performance since September. The S&P 500 and Dow dropped 1.52% and 0.59%, respectively.

Financial phobia? Financial therapy may help

We have all heard that money should not be idle, but instead should be working for you. This is typically done by investing money into stocks and bonds. But for some people, the idea of risk is not only uncomfortable but even downright frightening. For others, unhealthy money habits like gambling can take a toll on family and work. For all of these people, financial therapy may help.

The Financial Therapy Association is an organization dedicated to training and educating professionals who provide emotional support and practical solutions to help people cope with financial stress or poor money management.

The organization is a diversified group of professionals from various careers, such as marriage therapists, social workers, financial planners, accountants, counselors, and coaches to name just a few, who can work with clients to help them make wise money choices and deal with the financial issues that they may be facing.

Financial therapy is the link between two fields of expertise – financial planning and behavioral therapy. Financial therapists typically come from backgrounds that include psychology, marriage or family therapy, social work, and financial planning.

They can provide clarity, practical tools, support, guidance, and solutions so that financial phobias and impulsive behavior can be explored and minimized.

Think Beyond Budgets: A New Approach to Saving Money

Summary: Budgeting can feel restrictive and often leads to impulsive spending. Instead of fixating on what you shouldn’t buy, financial experts recommend a more empowering approach to saving money. By making smaller decisions and creating a conscious spending plan, individuals can feel more in control of their finances without sacrificing enjoyment.

While the new year may spark the desire to do a budget overhaul, personal finance expert Suze Orman warns against the restrictiveness of budgets. Comparing them to crash diets, she believes that strict budgeting almost always leads to a binge-spending spree.

Orman suggests that instead of focusing on what not to buy, individuals should focus on smaller decisions that make them feel more secure and in control of their bank account.

The key takeaway from these financial experts is that spending is unique to each individual. While budgeting may work for some, it is not the only method for tracking spending. The focus should be on making mindful decisions and feeling empowered about financial choices.

By reframing the approach to saving money, individuals can enjoy date nights and occasional splurges while still prioritizing their financial goals.

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