Whether you know it or not you have a relationship with your money. There are a lot of emotions experienced around money. Think about it: when you get paid, how do you feel? When you receive money or spend your money, what emotions do you feel?
An important aspect of living a secure, abundant financial life is having a healthy relationship with your money.
Put these action steps in to place to transform and have a better relationship with your money:
- Adopt a “Start Today” attitude. Say to yourself, “Starting today, my goal will be to improve my relationship with money.” Then, maintain that focus throughout the day.
- Shift your paradigm. Convince yourself that it’s better to save than spend.
- Reflect on your money history as an adult. Ever since you’ve left your parents’ home, how has your relationship with money progressed? What do you think you could do to improve your relationship with money?
- Now, ponder your money history as a child. Did you parents teach you anything about money? Let’s consider that question from a different angle: what did you learn from observing how your parents managed their money? How do your money management attitudes reflect what you learned from your parents?
- Consider money as the gateway to the future you seek, because it likely is.
- Take a look around you and be honest with yourself. You have enough tangible “stuff.” Isn’t it true you have everything you need, maybe even too much of some things?
- Add up your unnecessary expenditures for last week. Now do it for the last month.
- Recognize the money you spend unnecessarily could have been banked for your future, like retirement.
- Identify your negative money habits. In what ways are you spending frivolously?
- Get tough with yourself. Set up a iron-clad plan and strategy to combat your negative money habits.
- If having a credit card in your wallet causes you to spend freely, leave it at home. Doing so will prompt you to carefully consider whether you’ll spend money today or not.
- Recognize the negative points of using credit cards. Write out the issues you come up with.
- Vow to carry just one credit card. Make it a major one (Visa or Master Card, for example). Pick one that has no monthly fees and offers low interest rates. Avoid charging more than what you can pay off in a month. Doing so improves your relationship with money.
- Charge to a credit card ONLY when the purchase is an emergency. For example, paying for unexpected medical care would qualify as an emergency. Buying a new bag or smart phone game would not.
- Establish real financial goals. Set up a spending plan and follow it. Write your overall goals across the top. For example, “I will save 20% of my net pay each week.” Then do it.
- Use positive self-talk when you do something you’re proud of related to your money. Tell yourself, “I’m really pleased that I met with that financial coach” or “Good for me, I saved 10% of my paycheck this week.”
- Stop a spending episode on your way to the check-out. It’s never too late to back out of a purchase. Whose account would you prefer to fatten up – the store’s or your own?
- Set a new rule: no buying the first time you go shopping for something. Consider your first shopping trip as “surveillance.” See what’s available to meet your need and note the cost. Reflect on your possible purchase. Decide if you really want the item and whether it’s really worth your hard-earned money.
- Realize that having money in the bank is far more important than having that new trinket. Because it is.
- Consciously think of your spending plan each day. If you keep your spending plan in the forefront of your mind, you’ll likely focus on saving. Otherwise, you could spend without thinking and doing so would place a wrench in your financial plans.
- Put your math skills to work. Each day, add up what you spent. Did you fill the tank with gas on the way to work? Grab a gourmet coffee drink? Eat lunch out? Add it up. Then, determine how much you can cut from your daily expenditures.
- Speaking of math, get excited about your rising bank account numbers. If you have $20 more in your savings this week than you had last, be thrilled with yourself. The number is going in the right direction!
- Choose having money in the bank over possessions. Rather than living like you want to have the most “toys,” decide you want to have the most financial stability. Don’t try to keep up with friends or family when it comes to owning the latest thing. Remind yourself that the next best thing will be replaced tomorrow, and the next day, and the next.
- Ask yourself what you really want for your financial future. If you want to retire earlier than 65-plus, plan now so you can successfully do it. In fact, pondering your retirement frequently will help you stay focused on your financial habits in the present.
- Give up your loyalty to self-sabotaging money practices. Recognize the self-damaging patterns in how you manage money. Then, leave them behind you.
Your relationship with money affects how you live your life.
Take some active control over that relationship by putting these 25 action steps to work for you now. You can live the kind of life you choose when you have a healthy relationship with money!
I hope this article was helpful to you. If you need help. I can help you transform and heal your money with consistent month-after-month improvements in your financial health. If you are ready to reach your true financial potential sign up for a Free Discovery Call with me. Click Here to schedule your Discovery Call.