5 Ways to Build a Better Relationship with Money
Many of us are introduced to money at a young age. Some people shower newborns with cash while others give young children allowances. Though we are taught what money is and how to use it, are we ever really taught how to maintain a healthy relationship with money? We constantly work on our relationships with family, friends, work, and even food—so why not strive for a healthier relationship with money? The first step to nurturing any relationship is through acceptance and understanding. You won’t fix the issue by punishing yourself or ignoring the root of the problem. After allowing yourself to accept and assess your current relationship with money, give these 5 tips a try to help build a healthy relationship with money!
- Identify money-related emotions.
Money is emotional. Though we try to separate our money and emotions, it’s becoming increasingly difficult. Nowadays, more and more of even small aspects of our lives are tied to money. Do you get nervous about spending? Do you find joy in impulse purchases? Do you feel secure when saving? Do you worry about your investments? Recognize how you react to these emotions and actions. Disconnecting your emotions with your money can help you make smarter money decisions. An easy way to accomplish this is by allowing yourself time to make purchase decisions.
- Forgive mistakes.
Have you ever spent much more than you planned and later regretted it? Impulse spending is a top-ranked problem for many with unhealthy money relationships. Instead of beating yourself up, recognize the problem and determine how you can do better next time. Financial mistakes are normal—use the errors as a learning tool.
- Create a financial strategy.
Budgeting and tracking your finances are an easy way to take control of your relationship with money. By ensuring your responsibilities are paid through a visual, such as an expense spreadsheet, you can eliminate any missed payments. This can allow for less money-stress as you’re less likely to be behind on bills, which can cause debt and financial burden. You can also create investment and savings plans to help your money grow.
- Remember: money is a tool.
How many times have you said, “I wish I had more money” or “I need to save more”? Stop treating money as a goal or a means to solve all your problems. Money may help achieve your goals, which may make you happier, but money is just that: a tool. Like any other tool, determine how you can use it to make your plans reality. Determine your goals and align spending priorities to potentially create a healthier money relationship while working towards your target.
- Focus on the long-term.
While many choose to focus on short-term financial goals, planning for the long-term is crucial and a great way to improve money relationships. Creating a retirement plan can potentially relieve some financial stress. Do you have a strategy for retirement savings? When was your last portfolio check-up? At RGA, we offer complimentary portfolio check-ups to help determine if your plan meets your goals or revamp it to fit your vision. Click the link below, call 1-800-467-8152, or email firstname.lastname@example.org to schedule a time to chat about your retirement plan.
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