5 Ways To Better Your Relationship with Money
Are you looking to better your relationship with money? When most people talk about improving their relationships, they refer to their relationships with spouses, friends, children, co-workers, other family members, or even themselves. However, one of the most important relationships a person will ever have is the one that he or she has with money.
Money is such an emotional topic and can definitely affect interpersonal relationships. For example, according to data from TD Ameritrade, 41% of divorced Gen Xers and 29% of Boomers say that disagreements about money was the reason their marriage ended. If you want to improve your relationships with other people, then you’ll definitely need to better your relationship with money – how you earn it, how you spend it, and how you save it. In this article, we’ll explain how you can do that.
Schedule a weekly money meeting
Most people are so afraid of their own financial situation that they don’t want to face the facts. They refuse to look at their bank statements, and they lose track of their debt. For them, staring down their money issues is more terrifying than looking over the edge of a cliff. You can avoid being one of those people by scheduling a weekly money meeting with yourself.
During this time, you should review all your bills and your bank accounts. Take stock of where you could be saving more money and how you can better adjust your budget. Are you heading to Starbucks too many times a week? Are you eating out lunch when you could bring your lunch to work? Set goals and be brutally honest with yourself. If you’re able to do this on a regular basis, then you’ll keep small problems from spiraling into bigger ones. Before you know it, you will better your relationship with money and meeting your financial goals will be that much easier.
Know the difference between a want a need
If you want to better your relationship with money, you need to visit the world of needs and wants. One of the easiest ways to start the process of breaking down what is a need and what is a want, is the way you refer to things. When you say I need to get the new sneakers from Nike that just came out, switch the word need with want. This goes for anything you are looking to purchase that is not an “essential” expense. So, you want to go out to that new restaurant that just opened, you don’t need to. Wants should definitely be a part of your personal finance plan. They just need to fit in accordingly with your budget.
Set financial goals
Money anxiety tends to root itself in the lack of financial goals along with a plan to achieve them. So, taking the time to identify specific financial goals is necessary to improving your relationship with money. For example, do you have a goal and plan in place for your retirement? In order to lessen the anxiety of your future financial reality, you should take the time to calculate when you want retire and how much savings you will need to fulfill your desired lifestyle.
Stop comparing yourself to others
One major reason that people get so frustrated with their finances is because they always want more and they don’t feel satisfied with what they have now. If you can stop comparing yourself to other people, then you won’t often feel like you’re missing something or that you have to earn more money to be happy. Focus on your own financial goals and decide what you need to reach them. You can never know the truth about someone else’s bank account anyway.
Celebrate the good
Even if you haven’t reached your financial goals, you can be grateful for what you have and celebrate your wins. For example, if you were able to pay your rent and put food on the table for your family, that’s a true financial achievement. If you were able to raise your credit score by just a few points, you should be patting yourself on the back. Achieving your financial goals will take time, and you shouldn’t ignore the small steps you take toward success.