Is money a source of stress in your life? Finances can create tension in your life and relationships if you don’t manage it well. Think of money like it’s green energy. Money can enrich your life, just like a personal relationship with a friend. Like negative energy, it can trigger anxiety. Nurture your relationship to money by paying attention to your finances for a rewarding outcome. If you want to simplify your relationship with money, use these three steps.
1. Be honest with yourself about your finances.
Just like in a relationship with a friend, your relationship with money will improve when you are honest with yourself about your situation. Maybe you are sharing the rental of an apartment with others and also have a lot of credit card debt or student loan interest that is piling up. Ignoring your debt will not make it disappear. You can try reaching out to a friend who you trust and know is good with money or a financial advisor to help you sort things out. When you take responsibility for your finances, commit to looking carefully and honestly at where you stand.
2. Be realistic about what you can spend.
You might be inflating or ignoring the truth about your finances. For example, you might:
- Assume you have more money to spend than you do, or
- You are convinced you deserve the most expensive things right now, or
- You keep your money in a non-interest bearing account instead of investing it.
None of this helps you with your relationship with money. You are not honest or realistic. Instead, consider the connection between your goals in life and your money. Think into the future. When shopping and planning for purchases always consider your needs before your wants. Rent and food come before that new pair of shoes. Sacrifices now can make your future dreams a reality. Ask yourself: “Realistically, what can I change now to meet my goals in the next three years?”
3. Consider what you are getting in return.
Think of what you spend as an investment. Always consider what you receive for the expenditure. Also, when making some purchases, consider quality above all. Let’s face it; we all love a good deal. And haven’t there been times that you got what you paid for? When you buy something you want to last for a long time and invest your money in a cheap product, you are likely to end up spending more money to replace that product. This purchase isn’t a good investment, since had you bought the higher quality product at the start, you’d be better off. Consider that quality can save you money in the long run.
Remember that all relationships take work. So, treat your relationship with money with thoughtful kindness. This “green energy” will serve you well in life and help you attain your goals.