Financial well-being is an integral part of our overall well-being as it can be a cause of stress, anxiety, and other mental health issues. A positive relationship with money is where an individual has positive interactions with money.
It entails spending wisely, investing, and saving so you do not have to worry about money now and in the future. A bad relationship with money can lead to feeling guilty for spending it, spending carelessly, finding justifications for why you cannot save money, and owing a lot of debt.
Turning a bad relationship with money into a good one requires action, strategic planning, and help.
Identify Your Current Situation
Before you can start improving your relationship with money, you need to understand where you stand first. You need to review how much you are making and spending, your financial values, and your financial situation. Also, think about the feelings you have towards money.
Do you feel anxious or guilty when spending money? Do you feel like you never have enough money or spend more than you make?
Answering these questions will give you more awareness and somewhere to start when addressing your financial behaviors.
Keep An Eye on Your Spending Habits
Many people have a bad relationship with money because they spend more than they make, a behavior that stems from having bad spending habits. To understand your spending habits, you need to look at what you are spending on.
In the beginning, it will make you anxious to think about everything you are spending money on. However, you will get better at identifying whether you need what you are buying and if it is a legitimate need or just something you want.
Put Plans in Place to Take Care of The Future
A lot of anxiety revolving around money has to do with worrying about financial stability in the future.
If you do not know whether you will have enough money to pay for college or a comfortable retirement, you will always worry about your future.
You can take care of this in two ways. First, put a plan in place to start saving more. There are numerous strategies to follow here, including reducing your debts or eliminating them so you have more to save, and cutting back on your expenses.
Second, you should consider long-term investing. In its simplest form, long-term investing requires putting money into a mix of assets and investment vehicles so you have a diversified portfolio that will give you a good return on your investment.
The easiest way for beginners to start is by investing in stocks. You can use various online platforms to compare the metrics like price performance and profitability to find stocks that will give you the best returns and peace of mind.
Also consider other investment options like bonds, trusts, mutual funds, and exchange-traded funds, which will help you hedge against risks and volatility.
Have a Budget
A budget is one of the most important tools for managing your relationship with money. A budget and spending strategy will help you feel more confident and relaxed about managing your finances because you do not have to think about every spending decision as you are making it.
This will go a long way in eliminating anxiety at the purchase point, saving you money, and improving your financial situation.
If your financial situation affects other parts of your life, such as your family or work, it is a good idea to get external help. You could talk to a mental health professional to get the help you need and a financial advisor so they can assess the situation and help you get back on track.
Money and financial situations are often a cause of worry and anxiety for many people, many times turning into and causing serious mental health issues. Understanding how to manage your finances, getting help, and having a plan for now and in the future can help you improve your relationship with money and mental health.