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Posted on February 7, 2020

How to Create a Healthy Relationship With Money in 6 Steps

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By Teresa Milner

Does the word “sale” send you running to your wallet? How many half-priced clothes hang in your closet with the tag still on? How many uncomfortable shoes did you buy solely because they were on sale?

When thinking about money – do you feel stressed, tense, controlling, confused, like you have an abundance of it or a lack thereof?

If you relate to any of these questions, you have an unhealthy relationship with your money.

This might be because you were raised to think of money negatively. Or, maybe you’ve had a hard time financially and still carry around that stress and pain.

Regardless of the root of these unhealthy tendencies, you’re not fated to live that way forever.

Today is the perfect time for you to take control of your relationship with money. If you’re waiting for your sign – this is it.

This doesn’t mean you have to only save it – you can indulge every now and then. Just be more conscious of it. 

If you’re overwhelmed, think of building this relationship like cleaning your house.

The idea of cleaning the whole house at one time can feel too stressful. Sometimes so stressful that you decide to push it off, and the mess gets worse.

Instead of quitting or stressing yourself out, start by cleaning one room at a time.

Apply this to your relationship with money. Just adopt one of the healthy habits below at a time, and soon you’ll be on your way to creating a healthy relationship with money.

Expect the Best, Prepare for the Worst

We go through many tough experiences in life, most of which are out of our control and not our fault: job loss, illnesses, accidents, etc. Unfortunately, our financial responsibilities don’t get a break during these times. Be prepared for them by having an emergency fund ready.

Create Beliefs About Your Money That Will Support Your House Budget, Lifestyle and Goals

This will help you identify the limiting behaviors you have developed with your money. Recognize and evaluate any unhealthy patterns you might have with your money – then work on healing them.

An example of this that many of us can relate to is getting Starbucks every day. Although $5 may not seem like a lot of money, multiply that by five. That’s $25 per week and more than $1,000 per year for your favorite morning beverage. A great way to break this habit is to save it for Fridays. By only buying it one day per week, the annual total would be $250. Sounds like an easy way to save $1,000.

Don’t Spend More Money Than You Make

Don’t spend more than you make. Limit debt by viewing credit cards as something only to be used when needed and pay it back immediately. Buy only what you can afford.

What about that one thing that you really want but simply can’t afford it right now? Start saving. It’ll feel incredible knowing you purchased it responsibly.

Save 10% of Your Earnings

Look at saving money as an item in your monthly budget. I personally aim for allocating at least 10% of your earnings to savings. However, if you can’t start with 10%, start lower and increase as you go.

Know Where Your Money Goes

Don’t ignore your statements. Track your inflows and outflows. This habit alone can build your confidence with your money – as well as support that goal of building a steady, strong and healthy relationship with it in your life.

When you remove that toxicity around tracking money, this process can help you save money and spend more consciously.

Last, but Not Least – Give

Allow giving to be a healthy way of living. Choosing to be generous can help break your desire for more material possessions.

Money is not your only source of happiness. However, if you are not at a point where giving financially is an option, be generous with your time.

Random acts of kindness, volunteering or simply listening to somebody can go a long way.

Be open to having a life of abundance. Be aware of your feelings about money, and if they are negative – patiently and actively change that. Creating a healthy relationship with your money can curate a financial cushion to fall on if the unexpected occurs.

My career allows me to help people form a healthy relationship with their money. Please feel free to reach out to an advisor to sit down and have a conversation about where you are with your financial goals, and where you want to be.

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