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How healthy is your relationship with money right now? Do you dread opening your banking app? Do you have an exact figure for your expenses each month? What about your savings – if any? The truth is that many of us neglect our ties with our finances but just like any relationship with another person, you have to continuously work on it to build a strong, reliable foundation. It’s the key to financial contentment and fiscal confidence.
So, how can you work on your relationship with money? How easy is it to improve things? Believe it or not, it’s not as difficult as you might think. Read on to discover how to improve your relationship with money.
Understand the importance of saving
Knowing that you have something set aside for a rainy day is a sure-fire way to bring you confidence and strengthen your fiscal relationships. From stocks and shares ISAs to a junior ISA from Wealthify for your children, when you have something to fall back on and support you when times are tough, then you’ll sleep better at night. When you’re stuck in a constant cycle of earning a wage and watching it deplete into nothing each month, then your feelings towards money can turn resentful, when you have something set aside it gives you control and a feeling of security.
Remember that joy is important too
Money should bring you happiness. Of course, most of it is probably spent on bills and other mundane things, however, money spent on the things you love – even a small amount – is money well spent. Money is there to be enjoyed. So, whether you treat yourself to a new book, a new pair of shoes or a treat for your little one, you shouldn’t feel guilty. Just ensure that these expenses are budgeted each month.
Understand your financial situation
When it comes to money, many of us have our heads in the sand. Especially when it comes to debts. Understanding your financial situation will allow you to make better decisions and make your life better. If you have debts, tackle them head-on, figure out how much you owe and seek help if you need it. Understanding your financial situation will also help you make better financial choices.
Don’t be too hard on yourself
The key to a good relationship is communication and support. If you’ve made financial errors or poor choices in the past, then don’t beat yourself up about it. Be honest with yourself and learn from any mistakes. Don’t let them define your future relationship with money.