Lifestyle
When it comes to relationships, we often think about the ones we have with others, like life partners, friends, and family. But have you ever stopped to think about your relationship with other things like food, sleep, exercise, and money? Money is a constant presence in our lives, but many of us don’t give much thought to how we interact with it until we run out of it!
First, how is your relationship with money?
Your relationship with money isn’t only about the salary you earn or the bills you pay. It’s also how you think and feel about money and how these thoughts and feelings influence your financial decisions.
In this article, we’ll guide you towards building a healthy relationship with money. But first, you need to understand your current relationship with it, which is determined by several factors, such as your mindset, financial experiences, and upbringing.
To get a clearer picture of your relationship with money, answer the following questions:
- What does money mean to you?
This is probably the most important financial question you will ever have to answer because money holds different meanings and is linked to our emotions and behaviours.
For some people, money represents security. For others, it could mean freedom, power, the ability to provide for a loved one, or even a symbol of social status.
- Do you feel that money controls you or that you control money?
We live in a world ruled by money. We work to earn money and use it to sustain ourselves and save for the future. But money isn’t the problem. What matters is how we choose to spend it.
If you’re constantly worrying about money, overspending it, and letting it influence your decisions and dampen your mood and self-worth, then you’re letting money control you. But if you spend it wisely and use money as a means to achieve your goals and believe that the way you use money is what gives it value, then you control your money.
- What would you do if you had more money?
Does the thought of having more money make you think of everything you can buy, quitting your job and starting your own business, or helping those in need?
We won’t tell you that money can’t buy happiness because it can buy some. But we will tell you that money won’t solve all your problems, and asking yourself what you would do if you had more money can lead to making decisions that improve your life satisfaction.
Second, why is your relationship with money important?
Whether you notice it or not, you have built a relationship with money, and this relationship has influenced your career choices, spending habits, and even where you eat and which gym you go to.
Like anything in life, your relationship with money requires effort and commitment because it plays a major role in shaping your financial future, achieving your goals, and making sound financial decisions.
While we often spend a lot of time thinking about ways to earn more money, we sometimes fail to think about our relationship with money and how it impacts our financial wellbeing. But reflecting on and improving our relationship with money is crucial, as it can guide us towards a stable financial future.
Third, how to change your relationship with money for the better?
It’s important to know that changing your relationship with money for the better will take time, and there are no shortcuts. But with a bit of time and effort, and by following the tips below, you’ll start to see the difference.
- Let go of false beliefs
The first step towards a healthy relationship with money is letting go of all the false beliefs that limit you, which you may have acquired from those around you or formed by yourself due to bad experiences. Among these misconceptions is that “saving money is hard” or “investing is only for the rich.”
Once you free yourself from such beliefs, you can adopt new financial habits to help you build a healthy financial future.
- Educate yourself financially
How can you build a healthy relationship with money if you don’t understand its basics? Most people think financial matters are challenging to understand, but that’s untrue. Start by educating yourself on money-related topics, such as budgeting, saving, loans, bank cards, and different types of investments.
At Bank al Etihad, you can access different educational resources, such as our blog with a library of articles about money and our “Mali wa Maluk” podcast that introduces you to the basics of money management and banking services.
- Don’t compare yourself to others
Comparisons don’t help you and will only frustrate and hold you back from reaching your goals. So, avoid comparing your monthly income to a friend who drives an expensive car or a cousin who travels to exotic locations because these things aren’t a measure of success.
- Pay attention to your emotions when spending
Track your expenses and pay attention to the emotions accompanying each one so you can decide which ones are worth spending on. You can do so by categorising your purchases into 2 groups: those that make you happy and those that make you sad.
When you understand how your financial choices affect your emotional health, you can prioritise spending on things that make you happy (for example, travelling) and make choices that lead to positive outcomes (for example, paying off debt).
- Remember that money is only a tool
Money is a tool, just like a hammer! And just like you need to learn how to wield a hammer, you must also learn how to use money to build your dream life.
That’s why it’s important to prioritise your goals and the steps you need to take to achieve them rather than just focusing on how much money you make. To stay on track, limit your spending to only the expenses that align with your goals and can help you achieve them. Let’s say your goal is to become debt-free. To work towards that, start by cutting back on unnecessary expenses and using the saved money to pay off your debts faster.
We hope you’ve found this article beneficial and have decided to start working on improving your relationship with money. Don’t worry if it seems challenging at first. It’s like anything new in life - the more you practise it, the easier it gets!
