Improving your relationship with money

June 5, 2020 in Wealth - 2 Comments

It seems strange to think about having a relationship with money, but the practicalities of money can bring about some serious emotional problems.

This comes from numerous experiences in our life which generally start during our upbringing.

In some cases people attempt to emulate their parents or guardians and in others, they attempt to do the exact opposite. They spoil their families with the things 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. 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 live within your means and discuss any concerns with your partner.

It isn’t always easy, but place value on money and you will make a more conscious effort 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

Make a list of debt repayments along with the monthly payment and what date in the month it is due. Grab details of the interest rates too.

I then use an app on my iPhone called Debt Payoff Planner. This allows you to input all of your details and select a strategy on how to clear your debt.

Mine currently says everything will be cleared in 4 years and 10 months, however, we are aiming for 18 months. This is so we can live even more comfortably and start to save for our forever home.

Celebrate the good and forgive the bad

When you feel you are making progress with your budget or your money relationship, ensure 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 you are not in the financial position you would like to be in, remember the relationship you have with your money is a long term one.

A few ‘blips’ here and there won’t erase the good work you have done, so don’t worry about it. Just move on.

Recognise the difference between what you want and what you need

The simplest advice I can give here is 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. Hopefully my future posts on ‘side hustles’ and generating extra income will help you save 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 will change depending on what life throws my way.

If you still don’t know how you feel about your relationship with money, start with your budget and your outstanding creditors and take it from there.

You can find the link for the Debt Payment Planner app 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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