5 Effective Ways to Improve Your Relationship With Money
Updated: Jul 2
Money matters are the essence of having a great relationship with money, without doubting your financial future or financial management skills.
Building a healthy relationship and developing financial habits to improve money relationships will improve your financial situation.
Money in relationships has always been a topic of stress, but what about YOUR relationship with money?
How can you compromise on money matters or make financial decisions with your significant other if you do not have a great relationship with money?
To build that relationship with money, one must have a good foundation and understand money and the beliefs we were raised to believe about money. You also have to think long-term because your habits may have to shift.
In this article, I will discuss five effective ways to improve your relationship with money. But before we start, let’s discuss why having a great relationship with money is crucial.
What we believe and think about money will shape how we manage or treat it.
If you suffer from financial anxiety, recognize the triggers and get professional help. Many of us, however, do not acknowledge the impact our relationship with money has on our lives and that it leads to unhealthy relationships and personal finance struggles.
You may also want to check out this article for more wealth planning tips: Top Wealth Planning Tips for Women.
Do we respect money? Do we love money?
Do we need money?
Do we overspend?
Do we understand and respect the value of money enough to make a sound management plan to ensure our future?
Are we in a toxic relationship with money?
When we feel we need to abuse or never have enough of it, we overspend or fear needing more money.
There are two crucial relationships in this world: your relationship with yourself and your relationship with money.
We are more exposed to self-help books, article, and tips to guide and helps us in developing a good relationship with ourselves.
But, the number of articles and information you come across to improve your relationship with money would be comparatively much lesser. Your current financial situation may be the product of old habits or money relationships you learned in childhood.
Check out this article on ways to become financially free.
So, while improving your relationship with yourself is crucial, working on your financial situation and relationship with money is equally crucial.
Furthermore, you should understand how having a good relationship with yourself can improve the quality of your relationships with others and help you grow as a person; having a good relationship with money, on the other side, can improve your quality of life and help you achieve your financial goals with undue stress.
You may also want to read "10 Types of Savings Accounts For your Financial Journey."
Therefore, to improve your relationship with money, you need to figure out what you want in your life, set your financial goals and priorities, and work persistently towards achieving them.
In this article, I will discuss five effective ways to improve your relationship with money, which will guide you through your journey of building a healthy relationship with money!
Start Improving Your Relationship with Money Today!
Having a healthy relationship with money is a lifelong journey. It is a continuous process that requires constant effort, time, and patience, just like any relationship.
You may have to work on specific aspects to improve your relationship with money, and you may need to make some habits and incorporate order to have a good relationship with money. So, here are five such effective ways you can consider to improve your relationship with money.
1. Know the definition of money:
What does money mean to you? Is it a m ster that makes you work for it?
Or are you a master and use the money to your advantage?
Is it just a tool that helps you fulfill your needs and wants?
Or is it a golden key to unlocking your freedom and dreams?
Every person has a unique way of seeing money, and the meaning of money differs from person to person. Even the value we give money transcends people, cultures, societies, and even religions.
The way we see money and what we come to believe about it is rooted in our upbringing and engrained from our social or cultural background.
For example, if you grew up with scarcity, you might tend to believe that the only way to have money is to work and that there will never be enough. Perhaps your parents taught you that money does not grow on trees or that it is the root of all evil.
No matter the beliefs, try to recognize them, identify them, and begin working through those beliefs that prevent you from having a good relationship with money.
Similarly, you should know what money means to you, what you expect to do with it, what you are willing to give it in return, and most importantly, how you will manage your finances!
So first, know what money means to you, and if it is, treat it as such if it is crucial to your journey, appreciate and respect your salary, be grateful for your earnings, and spend money wisely.
2. Figure out your weakness or struggles with money:
Do you need help with managing finances? If so, what are your weaknesses when it comes to money? Not managing your finances well and your beliefs about money will impact your financial behavior. Your habits and attitudes, such as a saver personality, may be correlated to indebtedness.
Are you the Spender?
Are you the Saver type?
Are you the Debtor type?
Are you the Shopper type?
Are you the Investor type?
For those who don’t know, financial personality type reveals your financial traits, patterns, attitudes, and even habits that you don’t know you may possess all the time.
You can figure out your financial personality type by knowing the characteristics of each of them, or you can easily opt to realize it through an online financial/money personality quiz!
So, what are the benefits you get from doing that? First, you learn the dominating financial personality traits that determine your spending habits, saving methods, and investment interests if you need to increase or decrease a specific trait behavior to gain financial stability and improve your relationship with money.
3. Be grateful for what you have:
One way to maximize happiness and minimize worry is to spend more time writing down your blessings and things that make you happy.
For example, if you have enough money to meet all your necessities, you should learn to be grateful for everything you have. Though it may be an age-old belief, it is not obsolete.
So, if you value your money now, you will surely see your relationship with money blossom in the coming time!
Here are a few tips to get you started:
First, practice gratitude: Every morning, write down five things you are grateful for and acknowledge how those things benefit your life.
Change your mindset: Shift to looking at things with a different attitude and perspective. Perhaps you haven’t attained financial freedom or independence, but you are on the path to financial knowledge and well-being. Recognize those small changes and continue taking action.
Focus on what you have and not on what you don’t have: Don’t sweat the big or the little things. Acknowledge all you have, and don’t worry about what others have or lack! Finally, lan to achieve your desired financial end goal and improve your relationship with money!
4. Look at your goals and create a budget for yourself:
Look at your goals and ensure they align with what you want.
Ask yourself: "What are my goals and priorities?” before designing a budget.
The first step of creating a budget is classifying your expenses. Categorize them into groups so that they indicate what you're spending on. For example, Hobbies, Leisure-Needs-Wants-Gifts, donations, savings, etc., allocate a budget according to the requirements. Make sure to spend money on only the experiences that align with your values.
Next, start budgeting according to your goals and set a limit for how much money you can spend on things that are not in line with your goals.
Put the money you want to spend on something in your 'reserve' account to ensure you can only spend that amount and maximize your savings.
Follow these tips and take action today!
Write down your goals.
Write down your priorities.
Make a budget and allocate money for your expenses, an emergency fund account, and a savings account. Remember to pay yourself first!
Start budgeting and take action. Once your budget is set, automate your savings and emergency fund. A tip is to put that money in a different bank from your checking account. Forget about your savings account and only review it once a month. You will quickly see that savings account increase!
5. Spend tito daily on learning about finances:
You might have heard that spending time with yourself is the best way to improve your self-relationship. The same can be applied to your relationship with money.
Every day, set aside some time and devote it to knowing your finances better and learning something new about money management. Make it a daily habit or commitment to learn about finances.
You can research videos on financial management on YouTube or podcasts. Whether driving to work, drinking coffee, or cleaning the home, turn on a video or podcast on money management.
Make a financial planner: Write down how much you want to spend for the year, your savings goal, and major purchases.
You also have to manage your budget monthly, and at the end of the month, look at the expenses you incur monthly. This will help you see where your money is going and what costs must be adjusted.
One of the most important things about saving money is to know what you're spending it on. For example, if one's goal is to save for a down payment, one should pay attention to how much money one spends on housing, food, transportation, and more.
The first step in saving money begins by figuring out where your income goes and finding a money management method that works for you. Taking an example of money management habits, some people like using Dave Ramsey's system, while others like using the method of paying yourself first before you pay anyone else every month.
Get to know your method and what works for you, and see if there is another way to manage your finances more effectively. Build a positive relationship with money and understand money dimensions and how they affect you.
Spend some time to ensure you're taking steps to learn more about money management with those on par with your specific financial goals.
Also, take time to get to know your financial behavior. Find out how you behave in different financial situations so that you will have insights into your spending habits, such as what makes you spend money impulsively and what makes you go out of line with your financial goals.
This will help you determine what changes are needed to improve the relationship with money.
For more money-saving tips, check out these articles:
A Healthy Relationship with Money:
You may think of waiting for that next raise to get started on your savings goals, or you may think you need to make a specific salary amount to save. However, the mindset needs to shift; it is different from how much you make but how one can manage their expenses and live within their means.
Define what money means and identify the value of money in your life.
Change your mindset and remember that it doesn’t matter your profession or how much money you make.
It would be best if you focused on your goals, define your priorities, and ensure they align with them. Learn how to manage money effectively.
Respect that budget! Know your financial goals and spend according to your budget.
Make financial decisions that are well thought out, stable, and consistent.
Value money and be grateful for what you have.
Understand your weaknesses and struggles with money.
Get educated on financial management.
Understand your money habits.
Bottom Line: Whatever financial plan you incorporate, ensure it aligns with your goals, and implement it today. Bild your relationship with money and set yourself up for a better future financially. Your financial journey should be crafted with careful financial planning. Improving economic beliefs will help you identify money habits not conducive to a successful financial trip.
For more savings tips and guides, check out the Top Seven Books On Personal Finance.
By Edith Lagunas, Mujer Investor
#Mujerinvestor #financialwealth #finance #investing #savings #budgeting #savemoney #Financial literacy #Financial Wealth #Wealthmanagement #Finance #Financialfreedom #Savemoney
Disclosure: I may receive affiliate compensation for some of the links below at no cost if you decide to purchase a paid plan. This is for entertainment only and is not intending to provide financial advice.
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