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The Slippery Slope of Financial Codependency

“Hey babe, sorry to bother you at work but can you cover a couple of bills for me? I’m tight on cash again and my commission check doesn’t come in until next month.”

An amalgamation of several articles, from multiple authors, referenced at the end of these reflections.

You’re already feeling stressed about money and aren’t sure what to do, but s/he needs you; Of course you’re wanting to help. Afterall, what’s so wrong with helping others, especially people we are in love with?  Isn’t that what true partners are supposed to do?  And yet…secretly… you worry they’ll forget to pay you back, like before.

Before rushing to the rescue, think about what might be going on at a deeper level. Trace the roots of this automatic response, whether it’s old family dynamics or an innate need to be needed. Even if you know you're a codependent, you may still be blind to its connection to money problems.  Codependency isn’t just about relationships or emotional struggles; It can sneak into finances too. 

Money conversations become particularly complex when our relationships shape our financial decisions. The desire to maintain harmony in relationships can lead to financial choices that don’t serve our best interests. This pattern, known as financial codependency, can become a slippery slope to our financial and emotional well-being.

Think about the parent who continues supporting their adult child financially, despite their own dwindling financial resources. Or the partner who takes on debt to maintain a lifestyle their significant other expects, even though it causes them sleepless nights or money challenges elsewhere. These aren’t just financial decisions – they’re manifestations of relationship dynamics that have become entangled with money.

A related but somewhat opposite side of the same coin: 

Are you struggling to support yourself financially?  Do you keep finding yourself back at home or living with people who are less than good for your well-being?  Do you have the common issue of people breaking your boundaries or invading your space physically and or emotionally?  Do you want so badly to be in a safe, secure environment but you fear the financial burden of supporting yourself?

Or, are you struggling with addiction, of any kind, which eventually results in financial obligations falling by the wayside. The addicted person may feel trapped and rely even more on the other person in the relationship to support them financially. Compounding this issue is that addiction takes a toll on work performance and leads to loss of income, which can spiral into a progressively worsening addiction and codependency cycle. Eventually the partner may make the difficult, painful decision to no longer assume any responsibility for their loved one, leaving the addicted person without an emotional or financial safety net and the two codependents feeling even more abandoned.

Financial codependency means a relationship where someone affects someone else’s finances.

When this persists, unmet expectations see resentment growing on both sides.

The challenge lies in first recognizing these patterns, then actually doing something about it. Caring for others and wanting to help is natural and admirable. Doing so at the cost to one’s emotional, physical or financial health is not. Consider these signs that your relationship might be impacting your financial health:

Do you…

  • Shield your loved one from the consequences of their financial choices and actions?
  • Take a back seat in decision making, to allow them to feel a sense of control over a situation?
  • Derive part of your identity or satisfaction from people “needing” you?
  • Repeatedly lend or give money to your partner, friends or family?
  • Use your credit card to cover a loved one's unexpected “emergency” expenses?
  • End up paying your friend’s portion of the bill (again) because they can’t afford it?
  • Enable bad behavior (addictions?) of others with your spending?
  • Pay your partner's half of the rent or utilities?
  • Rack up debt because they promise they’ll pay you back, but make little/no effort to do so?
  • Loan money you can’t afford to spare?
  • Avoid financial discussions to keep the peace?
  • Feel responsible for others’ financial well-being?
  • Allow your financial goals take a back seat to others’ wants or needs?
  • Struggle or fear rejection from saying no to financial requests from loved ones?
  • Splurge or spend to try to please others or solve their problems?
  • Spend with the hope or expectation that it will make others more appreciative of you?

If you can relate to at least three of the examples above, you may be demonstrating codependent behavior, especially if you can connect enough dots to begin to identify a pattern. Keep in mind, the pattern doesn't necessarily have to be with the same people, and could be scattered throughout different relationships in your life.  

Start prioritizing your own needs over the needs of others by becoming self-aware. Ask yourself why you're so compelled to give (or for that other side of the coin, TAKE) so much. If it sounds like you're trying to make up for something, then ask whether this is an attempt to fill a gap. 

Breaking free from financial codependency involves:

  • Setting clear financial boundaries in relationships
  • Taking ownership of your financial responsibilities.
  • Learning to differentiate between healthy support and enabling
  • Getting comfortable with identifying and prioritizing your own needs over the wants and needs of others
  • Developing confidence in your financial decisions by learning about personal finances 
  • Communicating openly about money with loved ones
  • Prioritizing your financial well-being alongside others’ needs
  • Seeking guidance from a therapist and participating in recovery groups; Building a support network!
  • Boundaries; Boundaries; Boundaries!

It’s about finding the balance between caring for others and maintaining your financial integrity. This doesn’t mean becoming selfish or uncaring – rather, it’s about establishing healthy boundaries that allow both you and your relationships to thrive. Yes, it takes time; but the payoff in terms of financial independence and healthier relationships is worth it and you’re worth it!

REFERENCES

https://www.myvibrantmoney.com/blog/what-is-codependency-how-does-it-affect-my-money-and-how-do-i-stop-the-behavior

https://www.rightstep.com/rehab-blog/codependency-and-the-cost-of-living-the-financial-factor/

https://creativemoney.biz/codependency-messing-up-money/

https://codependencyrecovery.org/2024/07/06/the-hidden-money-issue-in-codependency/

https://www.nasdaq.com/articles/rachel-cruze-george-kamel-8-ways-financial-codependence-could-hurt-your-finances

https://www.money254.co.ke/post/money-psychology-financial-codependency-could-be-behind-your-financial-woes-money-psychology

https://www.wellsfaber.com/understanding-financial-codependency/

https://beyourmoneyhero.com/2023/10/12/when-love-costs-too-much-the-financial-toll-of-codependency/

 

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