Five Ways To Improve Your Relationship With Money
Tulix Team
Conversations about money don’t always have to be about budgeting, investing, and pinching pennies here and there. It’s time we focused on understanding where it all begins.
Money is personal and whether you know it or not, you do have a relationship with your money. But what is a relationship with money in the first place?
Where you get it, what you spend it on, why you look for it, how it makes you feel, what it reminds you of, how often you look at it and who you’re willing to share it with. All these make up your relationship with money, and as with all relationships, it takes work to make it work.
Here are five ways to improve your relationship with your money:
1. Have a budget and (kind of) stick to it.
A budget gives you an idea of where you want your money to go and kind of sticking to it leaves room for you to learn and adjust for where it’s actually going.
Maybe you always avoid budgeting for Friday nights out and end up going for them anyway. Instead of beating yourself up, factor outings into your budget, get a clear picture of how much you spend and determine whether it’s worth making it a part of your lifestyle.
2. Save for rainy days.
In case you lose your job or have a medical crisis, an emergency fund can make the difference between being completely stuck and having a softer landing. Keep the amounts realistic so you can comfortably add to your fund every month and save unexpected income like bonuses and gifts in this fund too.
3. Make your money work for you.
Investing in your future is an absolute necessity. We all have things that we want to do or get in the future whether it’s going on a holiday or owning a home. To achieve these it’s important to set aside money at present and invest it so it grows. Investing with specific goals is a great way to plan ahead and reduce uncertainty.
4. Manage debt.
Sometimes there’s just no way of getting through a difficult period without incurring debt but try to focus on paying it off as quickly as you can. Any progress, however little, can help you feel financially empowered and free you from the stress that debt often comes with.
5. Cultivate financial discipline.
It’s not just about having a budget, but staying accountable to yourself. Do you really need another pair of shoes in a different colour even though you didn’t like the first ones? Do you really want to go to another concert because your friends asked or could you instead order in and read a book this time?
Financial discipline is about executing your goals and staying true to your values in the process. Personal finance is just that, “personal”; and it requires discipline.
Showing Love to Your Money
Money doesn’t have to be a stressor or trigger, especially in tough times. Just like a partner, it will treat you how you treat it so cultivate good habits towards working on this relationship. It takes intentional effort, patience and lots of self-compassion as you spend and sometimes lose money understanding what matters to you.
Remember, a healthy relationship with money isn’t about being wealthy, it’s more about being in control of your hard-earned money, especially in deciding where it goes. It’s about aligning your values and ambitions with your spending – this will set you on the path toward financial security and bring with it peace of mind.