How you think and feel about money is important for your financial wellbeing and overall happiness. Your relationship with money is influenced by various factors, including your past experiences, family background, and personal beliefs. This can affect how you earn, spend, save, and invest your money. 

To have a good relationship with your money, you need to understand how you spend it. By reflecting on your past experiences, you can gain valuable insights that can help inform your financial decisions in the future. Here are some ways to do that: 

Know your Weak Spots 

Are you an emotional spender? It can be helpful to know what feelings drive you to spend money. For example, if you have an argument with your family, you may feel better if you buy yourself something nice. Be aware of these triggers and replace them with healthier behaviours. 

Don’t Spend to Impress  

Instead of trying to impress others by overspending, it’s important to invest in things that truly matter to you, such as your health, education, or hobbies. By doing so, you’ll not only save money, but also lead a more fulfilling life. Remember, the most important thing is to be true to yourself and live according to your values, not someone else’s expectations. 

Surround yourself with those who share your financial outlook and values 

Comparison is toxic. Maybe you have rich friends and feel pressured to fit in by spending more than you can afford. Maybe your neighbours love showing off flashy purchases, and you feel left out. Avoid resentful thoughts like “It isn’t fair!” or “It must be nice.” Surround yourself with friends who generally share your financial outlook and values. Remind yourself to focus on yourself and stick to your spending plan.  

Ditch the Denial 

Sometimes it’s easier to deny a problem than to face it upfront. But long-term denial can make us feel ashamed and stressed as our financial situation worsens. It’s better to face the truth and tackle your financial problems head-on. Taking responsibility is the first step towards finding a solution. 

Have a Good Money Attitude 

A positive money mindset is worth a lot. Maybe you’re thankful for a job that provides you with an income. Being grateful for what you already have could help you to buy less stuff to make you happy.  Let go of regret about financial decisions in the past. Learn from your mistakes and focus on a better future. 

Be Kind to Yourself 

It’s okay if you don’t change things overnight. Good money habits can take years to build. Give yourself grace if you make mistakes. Continue to take small steps every day toward financial freedom. 

If you’re looking to further improve your relationship with money, contact NMG SmartAssist to speak to a financial coach who can support you on your financial journey.