How to Have a Good Relationship with Money
Committing to your personal needs is a pivotal aspect of self-care. When we think of self-care, we often associate it with our physical, emotional, and social needs. However, self-care goes beyond that and includes our finances too. Investing time into ourselves allows us to deal with stress better and helps restore balance in our overall wellbeing.
It’s essential to nurture our finances by creating healthier money habits to improve our financial health and overall wellbeing. It’s critical to keep your finances in check so that you can look after yourself and your independence.
What is a bad relationship with money?
Is it possible to have a bad relationship with money, or is it simply a matter of unhealthy habits or lack of routine? Everyone has different experiences with money, but often when we feel controlled by our money rather than in control, we can feel overwhelmed. When you experience this, financial anxiety, shame, and other avoidant experiences begin to show—for example, ignoring bank statements and taking a payday loan.
There are so many factors that can influence our relationship with money. Regressing back to our childhood can often reveal the origin of many habits we have with money too. For example, if you grew up in a household where money was a point of contention, you may want to ensure you earn enough as an adult to avoid this. You may end up picking up multiple streams of income as an adult due to working overtime.
Below are a few ways you can improve your relationship with money to make it healthier.
It’s essential to spend time evaluating how you feel about money. As mentioned above, our financial beliefs and associations with money often stem from our childhood experiences. Recognising this is the first step to managing our money better as adults and re-evaluating our financial values from now on.
Another way to improve your financial situation and spending habits involve reviewing your finances. Sitting down and taking time to consider all your income, expenses, debts, and savings is very beneficial. However, this can be a daunting task if you already experience financial anxiety. There’s reassurance in knowing that doing this can help you see a complete view of your finances and see areas that call for improvement, allowing you to create a plan of action. For example, there may be unnecessary direct debits that can be addressed to save money.
Consider your goals:
Focus on spending money that helps you reach your goals. For example, if you want o buy a house, then consider setting up a savings account or help-to-buy ISA so you can put money away routinely. There may also be ways for you to save money. For example, you could trim expenses from subscriptions, eating out, and memberships that no longer benefit you.
Create a spending plan
Once you’ve given time to understand your money habits and given your finances an extensive review, you can begin to put a plan in place. This will allow you to prioritise your spending based on your values and long-term goals so important items are covered before spending on other things.
Improving your relationship with money is an ongoing process, but practising financial self-care is vital for your overall wellbeing. The more you make a habit out of improving your finances, the easier it will get.