Improving your relationship with money

June 5, 2020 in Wealth - 2 Comments

It seems strange to think about us having a relationship with money, but the practicalities of money bring about some serious emotional problems in people and this can come from numerous experiences in our life which start during our upbringing. In some cases people will attempt to emulate their parents or guardians and in others, people will attempt to do the exact opposite and spoil their families with the things that they feel they did not have themselves as a child. Later in life, conflict can occur with partners when contrasting ways in which the manage, spend and save their money.

No matter where you currently stand in this relationship, there are ways to improve it and here are my top 5 tips:

Make time for money and prioritise it
Setting time aside every week or month to review what is coming in and going out is essential. Having a good budget allows you to understand how to live within your means and allows you to discuss any concerns with your partner. It isn’t always going to be easy, but place value on your money and you will start to see a more conscious effort into managing and prioritising it. In other words, tell your money where to go before you are left wondering where is all went.

Know what you have got
If you have any reoccurring or debt payments, make sure you have a list of these along with the monthly payment, what date in the month it is due and the interest rate that is applied to the account. I then use an app on my iPhone called Debt Payoff Planner, which allows you to input all of your details and select a strategy on how to clear your debt. Mine currently says that everything will be cleared in 4 years and 10 months, but we are aiming for 18 months so that we can live even more comfortably and start to save for our forever home.

Celebrate the good and forgive the bad
When you feel that you are starting to make progress with your budget or your money relationship, ensure that you recognise that and celebrate that these small actions are all adding up to a debt free life and improving your overall relationship with your money. Similarly, if you find that you are not in the financial position that you would like to be in, remember that the relationship that you have with your money is a long term one and a few ‘blips’ here and there won’t erase all of the good work that you do, so don’t worry about it and move on.

Recognise the difference between what you want and what you need
The simplest advice that I can give here is to not be driven by your ego or ‘keeping up with the Jones’. Not only is it financially crippling, but it is emotionally draining and nobody really cares anyway. Remember, there is room in your budget for wants and hopefully my future posts on ‘side hustles’ and generating extra income will help you achieve a pot of money for wants.

Have faith in your long term money plans
It isn’t always rainbows and unicorns unfortunately and having a relationship with money is one that lasts forever. Right now my relationship with money is exciting, but with any form of relationship this feeling will change depending on what life throws at you.

If you still don’t know how you feel about your relationship with money, a good place to start is with your budget and list of your outstanding creditors and take it bit by bit from there. If you want to be kept updated with valuable money tips, other cultural and career advice, subscribe to my newsletter and leave me a comment below with your questions.

If you would like to add the Debt Payment Planner to your apps, you can find the link here: https://apps.apple.com/gb/app/debt-payoff-planner-tracker/id1009323715

Liverichmediauk@gmail.com

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2 Comments

  • Katie Foxton June 16, 2020 at 9:38 pm

    I’ve just downloaded the debt payoff app! Thanks for the tip …..loving reading your blog and sorting my finances out! Thank you xx

    • Liverichmediauk@gmail.com June 16, 2020 at 9:40 pm

      It’s great isn’t it? I love playing about with it to challenge myself to pay everything off earlier and cannot wait for payday to pay some of it off. This new mindset is seriously addictive! 🙌🏻💰🙌🏻

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