5 Ways You Can Improve Your Relationship With Money
Posted on June 23, 2019 by Brandy Caulfield, One of Thousands of Money and Finance Coaches on Noomii.
Every single person has a relationship with money. I introduce 5 insights on how to heal your relationship with money.
Your relationship with money might be one of happiness, appreciation, or even dread.
No matter whether you love or hate money, there is, more often than not, room for improvement.
Contrary to what many people believe, money is not all about numbers, figures, and statistics. Your mindset around money plays a crucial and integral role in how you perceive and act upon your personal finances.
As you become more aware of your money mindset, you begin to see how you and money work or don’t work together. This newfound knowledge allows you to make appropriate shifts in your behaviors to build, improve, and strengthen your personal financial situation.
So, let’s dive in…
1. Forgive Your Past
We all have a money past. The problem is that sometimes we can’t let go of it. Maybe you kick yourself for taking out too big of a loan or buying something you couldn’t afford or any number of other financial moves that you regret.
Dwelling on your past money moves may be affecting your current financial mindset.
The past is finished. What matters now is working on being comfortable with yourself and finding common ground with your personal finances. Only by doing this will you start to make progress with eliminating debt, paying off that loan, or saving up your nest egg. With that said…
I give you permission to forgive yourself.
Embrace the idea that you are allowed to move forward financially with a healthy money mindset for the sake of your future wellness.
2. Practice Gratitude
What are you grateful for?
Such a seemingly simple question, but many people have not taken the time to sit down and think deeply on it.
We have so much more than they realize, but are so caught up in the rat race that they fail to see their wealth- whether it be family, friends, possessions, talents, characteristics, etc.
MONEY MINDSET DAILY CHALLENGE:
Once a day, preferably in the morning before work or before bed at night, write down a few things that you are grateful for in a notebook. Yes, literally write it out. It will resonate more.
You will be amazed at the change you will feel in yourself as you begin to recognize that you have so much more than you originally thought.
Need more proof? Here’s an amazing website that tells you just how much better off you are than the rest of the world:
‘Global Rich List’
It really puts things into perspective.
3. Map Your Money
Your money is like a transportation system. It is a vehicle that can bring you from point A (debt, financial stress, no savings, living paycheck to paycheck, etc.) to point B (debt-free, a tidy savings, reduced financial stress, etc.).When you know where your money is coming from as well as where your money is going to, in essence, a mapped-out plan, your relationship with money improves. This is not only because you take control of your finances, but because maintaining a better sense of direction reduces financial stress and anxiety.
Think of it this way, you would never travel to an unknown destination without at least a map to show you how to get from where you’re coming from to where you’re going, right? Why on Earth would you not have some sort of a mapped-out plan for your money which also takes you from where you are to where you want to be?
Want even better? Getting help from a financial coach is like using a GPS instead of a paper map. Much easier, faster, and more up-to-date with the latest routes.
4. Recognize and Curb Emotional Spending
Shopping can be really fun.
The aftermath may not be so great if items were emotionally purchased. Maybe you had a bad day at work or a fight with your significant other, so you went out to buy a new pair of shoes to make you feel better – even though you can’t afford it. Once home, you feel guilty or sad or angry at yourself for spending that money. This is why you must…
Know your triggers.
What makes you want to shop? Ask yourself the following two questions in order to recognize whether you are shopping out of need or emotion:
· Is this purchase a need or a want?
· Did I experience a trigger today (tough day at work, fight with spouse, received my credit card bill, not happy seeing savings account balance, etc.)?
Now, ask yourself these two questions to curb emotional spends:
· What can I do instead of shopping (exercise, call up a friend, go for a drive, write in a journal, etc.) to relieve my emotions?
· Even if I’m feeling a happy emotion now, can I afford to buy this and will I still feel happy after I get home and look at the receipt?
5. Allow Change to Occur
Discovering the deeper reasons for our feelings, allows us to recognize our money patterns. Do I avoid my personal finances? If yes, why? Do I feel I have to keep up with the Jones’? If so, why? Do I spend all of my money until there’s nothing left instead of saving? If yes, why?
Dr. Klontz coined the term money scripts and defined them as “the thoughts, beliefs, and attitudes that we hold about money.” Once you find and acknowledge your secret feelings regarding money, you can recognize your money script.
Because our money scripts are not set in stone, you can take deliberate steps to change them for the better. Thus, improving your money mindset and ultimately your financial situation.
Because money mindsets are always a work in progress, you have the opportunity to learn how to improve your relationship with money for the better.
