6 Ways to Improve Your Relationship with Money
According to experts, financial well-being is an integral part of our general well-being. That being said, only a healthy relationship with money contributes to good health and our sense of well-being.
But what is a relationship with money? And how to improve it? If you keep reading, you should be able to determine whether your relationship with money is healthy. However, you will also learn 6 ways to improve your relationship with money.
What Do We Mean by ‘Your Relationship with Money?’
Like many other aspects of our lives, money occupies our thoughts and inspires certain types of relationships. And like with any other thing in life, this relationship can be healthy or toxic.
A positive relationship with money is one in which you have a conscious, satisfying interaction with money. It means that money is not a source of excessive stress. A positive relationship with money means spending intentionally, investing, and saving money.
A healthy relationship with money is important for a variety of reasons. An unhealthy relationship with money, for example, can cause you to make bad financial decisions. Also, it can cause long-term stress, leading to physical and mental health problems. Also, having a bad attitude about money can stress relationships, often leading to fights and divorce.
A number of factors determine what kind of relationship you’ll have with money.
Your upbringing determines your relationship with money. A relationship with money begins in childhood and is influenced by your family’s financial status, everyday financial experiences, and your parents’ attitudes about money. These early experiences determine whether you’ll have a healthy or toxic relationship with money.
In addition, your culture, religion, and education may all influence how you relate to money.
What Does a Bad Relationship with Money Look Like?
Before we dive into 6 ways to improve your relationship with money, let’s see what a toxic relationship with money looks like. Here are some signs you may have an unhealthy financial mindset.
- You feel guilty about spending money
- Feelings of anxiety, guilt, or fear when you think about money
- You constantly worry about not having enough money
- You resent wealthy people
- You spend carelessly
- You are constantly broke
- You owe a lot on credit cards
- You are constantly overspending
- You’re always looking for reasons why you can’t save money
- You blame external factors for not having enough money.
Any of the behaviors mentioned above may be a sign that you have a bad relationship with money. However, some strategies can help you improve this relationship and feel more financially satisfied.
6 Ways to Improve Your Relationship with Money
Once you know your bad money habits, you’ll be able to change them and have a better relationship with money.
Below are 6 ways to improve your relationship with money and regain control over your financial future.
1. Be Honest with Yourself about Your Situation
Mindfully identifying your current relationship with money is the first step toward improving how you relate to money. So, take time to review your spending habits, financial values, and current financial situation.
It is also good to note your feelings and thoughts regarding money. For example, do you feel anxious, worried, and uncomfortable when thinking about your interactions with money or financial responsibilities? Are you always short of money? Do you spend more than you have? Are you impulsive with money? Are you avoiding conversations about money? Do you hesitate to take action when money issues arise?
Answering these and similar questions might increase your awareness and help address and challenge your negative financial behaviors.
2. Identify Your Goals
Consider your financial goals and the healthy financial behaviors you want to adopt. Plan expenses that meet your goals and focus on priorities when you plan to spend.
For example, if you want to take a long-awaited vacation, consider cutting back on expenses like dinners out and instead opt for home-cooked meals. Or think about transferring to a card with a lower rate if you struggle to pay off your credit card debt.
Make identifying your goals a priority so that you can set a spending plan and focus on the urgency of using your money wisely.
3. Keep a Close Eye on Your Receipts
Make it a habit to review your financial situation and spending habits regularly. This involves keeping track of your income, savings, expenses, and debts. A habit like this can help you understand the roots of your unhealthy relationship with money and take steps to improve it.
4. Study Up on Good Money Practices
There are undoubtedly many examples of good money practices in your surroundings. Explore which financial habits successful people around you have and try to follow their examples. Some good money practices involve:
- Tracking your spending
- Sticking to your budget
- Consistently paying bills on time
- Setting financial goals
- Setting aside some income for savings
- Creating an emergency savings fund
- Maintaining a good credit score
- Saving for retirement
- Being up to date with your finances
5. Have a Plan in Place
Creating a spending plan is an excellent strategy to improve your relationship with money because it can help you feel more confident and relaxed about your finances.
A solid spending plan can be a great way to establish boundaries, set financial goals, and prioritize spending.
6. Consult an Expert
If your relationship with money makes you feel overwhelmed and anxious, seek counseling. A counselor specializing in financial psychology can help you identify factors that contribute to your toxic relationship with money, assist you with financial decision-making, and help improve your relationship with money.
Break Bad Habits and Take Control Over Your Financial Future
Money is a taboo subject for many people. Unfortunately, this frequently leads to unhealthy behaviors around money and finances. Learning to break bad habits is an ongoing process that takes time and dedication. However, you will feel empowered to improve your money mindset and take control of your financial future if you consciously try to change your habits. Money wounds can often be traced back to false beliefs. As a certified coach for the NewMoney story, I work with clients on understanding what their narrative is around money and how to move into a new narrative. If you would like to learn more, book a time to speak at www.chatwithkamini.com