How to Manage Money Better: Improve Your Relationship with Money

When we talk about health and wellness, we think about exercise, following a diet rich in nutrients, getting enough sleep, etc. We don’t usually think of money as a factor affecting our health. But financial well-being is a part of overall well-being. If money is taking up a lot of your concerns and is a source of stress and anxiety in your life, try to identify problem behaviors related to money and devise solutions to build a healthier relationship.

Financial health is about having a conscious and purposeful relationship with money that is satisfying and does not cause too much stress.

What does it mean to have a good relationship with money?

A good relationship with money includes:

  • Spend money based on your values
  • Have no or little reasonable debt
  • Save money for certain purposes
  • Save money for possible emergencies

We should keep in mind that our current relationship with money is influenced by our childhood , on which we develop our money scripts, that is, our views about money based on direct experience, family history, and parental attitudes toward it.

how to manage money better

Signs of a bad relationship with money

Some signs that may indicate that you do not have a good relationship with money are:

  1. Your financial situation is not improving.
    One indicator that your relationship with money is not adequate is that your financial situation is the same or worse at the end of each month. Despite trying to change it, it becomes a consolidated habit. In this case, it is not an issue of money, but a behavioral issue, that is, a set of behaviors related to money has been consolidated.
  2. You don’t make plans for the future.
    You have no long-term plan with your money. People can make up excuses to justify themselves. For example: saying you don’t have money, that you’ll fix it later, that there is time, etc. Something that is not a good sign is when the person is faced with the possibility of starting to save for various reasons, such as retirement from work, the person says he is too young, I will do it … That procrastination is an indicator that your relationship with money may not be good.
  3. You don’t have consistent strategies with regard to money
    In the case of debt, the person has no consistent strategies for resolving it. In the absence of a plan, each month is approached in a different way and with a different priority. There is no road map and therefore no progress. You need to pay attention to what you are doing to create a more consistent plan that follows one direction.

Ideas and tips to heal your relationship with money

Once you have discovered that something is not quite right with your economy, it is time to learn how to improve your relationship with money, below we offer you 4 very effective ideas:

  1. Observe your habits
    First, take some time to observe how and when you spend money. This way you will identify your patterns, the motivations in buying things, your triggers, etc. A good way to observe your habits is to write down your purchases in a notebook for a month. Understanding or having more information about how and why you spend money is essential to making changes.
  2. Avoid comparing
    We tend to compare our salary to others and are only satisfied when it is higher. If they offer us a land increase, but also to other people, we are less satisfied than if it had been offered to us alone. This comparison is an inexhaustible source of dissatisfaction. Take the time to think about what you want without considering other people. Focus on what you can improve and feel the job satisfaction of a job well done and improve your skills.
  3. Adjust your goals
    Value your budget. Most of what we need in our lives is not about money, we can have a good life and not spend much. If you have financial problems, it’s about changing what you usually do. For example, if our expectations increase as our income increases, you can change that and instead of wanting more expensive things and in more quantities, you can choose to save money. Instead of buying things, saving money can give you more security.

    One way to help you change your spending habits is to set up incentives that motivate you to reach your goals. These incentives can be rewards for meeting goals or punishments if you don’t. In this way, it will be easier for you to persevere until you reach your goal.
  1. Control how you spend money
    Spending money on material things does not always bring happiness. But there are ways to spend money that can make you happy:
  • Spending money on others: there are experiments that show that when people spend “extra” money on material goods this does not increase their happiness, but when they spend or donate it to someone else, they experience a significant increase in their sense of well-being.
  • “Spending money to buy time”: Think of ways you can get more time in your life to have fun and make friends. For example, if you are a father or mother, you can invest the money in a babysitter who can take care of your child to enjoy time for you, your partner, friends.

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