Do You Have a Good Relationship with Money?

Wed, Sep 26, 2012

Financial Advice

Is your relationship with money a good one or is it more like your relationship with your mother-in-law? The truth is many people don’t even consider that they’re in a relationship with their finances, but you are. More importantly, that relationship could be causing your financial turmoil. Let’s take a closer look at what it means to be in a relationship with money and how you can make improvements.

What Does a Relationship With Money Involve?

Like most relationships, a relationship with your money is very complicated and has several areas that need your attention. The first area is management. This involves your daily life with money, such as using your debit card to purchase groceries and then recording the transaction in your checkbook. The next area is spending, which is fairly simple. This just includes your spending activity and what your money is being spent on. The third area of your relationship with money is earning. This involves what you do to make a living and bring cash into your account. Saving it is the fourth area of the relationship and focuses on how much of your money you save. The last area is investing. This is where you put your money to work so that you have even more money.

Is Your Relationship on the Rocks?

Sadly, many people don’t have the best relationship with their money. Some may excel in some areas, but fail in others. For example, you may be good at tracking your money, but you aren’t good at saving it. The good news is that you can work on improving your relationship. You don’t have to let your relationship with money become problematic and, if it is a burden, you can make some easy changes.

How Can You Improve Your Relationship With Money?

The first thing you want to do is pinpoint the problems you have. Sit down and consider each area of the relationship and then focus on the problem areas one at a time. For example, if you’re bad at managing your money, create a spreadsheet and track every purchase you make and every time money comes out of your account. It doesn’t matter if it’s only $1, you still need to track it. By focusing on one area at a time, you’re able to better your relationship without becoming overwhelmed.

Most people don’t have a perfect relationship with money, but that doesn’t mean you can’t improve your relationship. Once you discover the problem areas, work to make things better so that your relationship with money is a good one.

About the Author: Tammera Sandona spends a great deal of time studying budgeting, investing, and money saving techniques. She enjoys learning about the stock market and watches investors like Tim Sykes to learn about the best strategies. She hopes to open her own brokerage account someday soon.

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