Before: Head in the Sand
Kate is a divorced mom living in San Francisco who wrote to me about her chronic money anxiety. "I'm always worrying about not having enough at the end of the month, saving for retirement, getting my spending in line. I handle the basics like paying my bills (although I dip into my savings to make the mortgage) and balancing my accounts, but the truth is I ignore the rest as if it'll all take care of itself."

Actually, though, Kate was in pretty good financial shape. She had a sizable retirement fund, money saved for emergencies, a well-paying job, very little debt, even a financial planner. What she didn't have was a positive association with handling money.

Kate was suffering from a silent epidemic -- financial avoidance -- and it was causing her a lot of unnecessary stress. It's a common problem, for which there are any number of reasons. Maybe Dad handled all the money in the household; maybe finances were a source of fear or frustration in your family; maybe you feel overburdened by debt so the idea of even opening your bills can feel like a terrifying act.

Whatever the reasons, the consequences can be serious. Although Kate thinks her anxiety is about not having enough money, it's really about something much deeper: a lack of personal power -- the kind of power that comes from pulling your head out of the sand, taking full responsibility for your financial health, and becoming a good steward for the wealth you already have.

Doing so allows you to pursue your goals and dreams. It also lets you avoid being held hostage by debt, feeling powerless to leave a dead-end job or marriage, reaching retirement without adequate savings, or living with chronic self-blame -- all of which rob us of the power to live authentic, satisfying lives.

It was time for Kate to take action -- the only way to reclaim her power. Armed with a doable three-part plan, we tackled the challenge.