Is your relationship with money unhealthy?
Things are looking up one moment. And boom! Its world war III in your bank account.
It’s like you’re in a never-ending battle because no matter what you do, you feel you’re always scraping the bottom of the barrel.
We’ve all been there.
Sadly, many of us struggle to manage our money. The good news is we can change our money mindset, improve our relationship with money, and achieve financial freedom.
The solution is simple.
But before I share it with you, we will review the signs and causes of an unhealthy relationship with money.
Signs You Have an Unhealthy Relationship with Money?
You Avoid Talking About Money Management
Discussions about earning more money is your cup of tea, but you avoid money management talks like the plague.
Do you say things like, “creating a budget is a burden, or I don’t have time to track my spending?”
I get it.
Many of us cringed at the thought of reviewing our credit card and bank statements, but we can only fix our problems when we face them.
Ecclesiastes 7:12 tells us, “Wisdom is shelter as money is shelter, but the advantage of knowledge is this: wisdom preserves those who have it.”
We must first recognize our problems then we can take the necessary steps to correct them. But believe me, once you make managing your money a priority, you’ll be well on your way to financial stewardship.
It will be life-changing.
You’re Battling with Lifestyle Inflation
Lifestyle inflation refers to increasing your spending when your income grows. For example, the moment you receive a raise, you need to upgrade your house or car.
Ecclesiastes 5:10 says, “Those who love money will never have enough. How meaningless to think that wealth brings true happiness!”
We attempt to keep up with our friends, neighbors, or worse online influencers, but we only end up accumulating debt. We don’t know the condition of other people’s bank accounts. Could they have more in their bank account? Yes, but they could also have less.
Since we don’t know how they obtained their possessions, we mustn’t mimic their actions. Base your choices on your values, convictions, and bank account.
What Causes an Unhealthy Relationship with Money?
Lack of Knowledge
I think we can all agree that one of the key reasons our relationship with money is terrible is because no one taught us how to manage money.
Hosea 4:6 tells us to not only attain knowledge, but it also teaches us to apply the knowledge to our lives.
“My people are destroyed from lack of knowledge. ”
Two things are certain:
- We need to earn money
- We can’t buy things without money
Now, I understand most of our parents didn’t have the knowledge to teach us how to manage our money.
For starters, we probably would be ahead of the game if we knew how to balance a checkbook or create a budget.
But, I’d have to say the biggest downfall for some of us is we never learned why we should manage our money and the consequences of making poor financial choices.
- Why do we need to save money?
- Why should we avoid debt?
- How do we live below our means?
Hold on a minute. Before you call up mommy or daddy, know one thing.
You’re just as responsible.
Hear me out.
No Self-Discipline
No longer children, but adults attempting to fix our relationship with money. It’s not easy. I know.
So, where do we go from here?
As you know, God blessed us with the ability to make our own choices. We have the free will to manage our money any way we like.
Isn’t that a beautiful thing?
Sadly, we make poor financial choices. We see it; we want it, and we buy it.
- Want a college degree now? No problem, we can take out student loans.
- Do we need a new car? No need to worry, I hear they have loans for that too.
- I want the new “insert item name,” no big deal, I’ll put it on a credit card.
Society tells us we don’t need to wait because we can finance anything we want.
Do you know what I’m tired of seeing? The fad of spending twice as much at the store and bragging about it on social media.
Don’t do this, ya’ll.
Proverbs 25:28 warns us, “Like a city whose walls are broken through is a person who lacks self-control.”
Overspending and unplanned shopping have become a trend. But it is only an excuse for our lack of self-control. If you’re not careful, you’ll end up so deep in debt you won’t find a shovel big enough to dig yourself out.
Delaying a purchase can help you show more gratitude for what you already own and help you develop self-discipline.
Since we’ve reviewed the signs and causes of an unhealthy relationship with money, let’s get to the solutions.
How to Improve Your Relationship with Money?
1. Prioritize Your Financial Goals and Obligations
Managing your money can be scary at first, but if you’re consistent, you’ll get the hang of it in no time.
Learn how to set and prioritize your financial goals and obligations.
For example, you may want to buy a house in a few years, but discovered you have too much consumer debt. Your priority is to map out a course of action that includes your debt payoff plan and savings goal.
When you don’t prioritize your finances, you’ll end up spending money on everything but what you should spend it on.
2. Set Healthy Financial Goals
While you work to improve your relationship with money, you’ll make lifestyle changes and set goals.
To achieve your goals, make sure you’re crystal clear on your objective. You should know where the money is coming from, how much you can save, and when you’ll reach this goal.
Do you want to buy a house in 2 years? A 15% down payment on a $200,000 house is $30,000.
If it is impossible to save $30,000 in 2 years, your goal may be unrealistic and needs an adjustment.
3. Spring Clean and Organize Your Finances
Organizing your financial documents is responsible and will improve your relationship with money.
Sort and organize your bills, tax papers, and receipts. After that, shred your old documents and select a designated area for the rest.
The last thing you want to do is tear up your house, searching for a document. When you organize your documents, they will be readily available as you need them.
4. Create a Budget
You can do a paper budget, or if you prefer a digital option, you can use an Excel spreadsheet or a money management App.
You may think you’re not in control of your money when you set up a budget, or you won’t be able to spend any money, but it’s the complete opposite. Contrary to popular beliefs, you’re more in control of your money when you have a budget.
For instance, a budget helps you track your expenses and pay off debt. It will also hold you accountable and help you achieve your financial goals. Essentially, it is up to you to point your money in the right direction.
5. Focus on Your Needs
Focus on your needs, not wants.
We live in an instant gratification society, where we treat our wants more like needs.
It is crucial to develop smart spending habits. Focus on your basic needs—shelter, water, food, and clothing. The rest you can do without until you’ve reached your goal. As a result, learning to go without will help you appreciate what you already have and improve your relationship with money.
Now, I know you may think a new item will bring you joy. And you may be right. But consider this, “will the excitement last when you’ve failed to reach your financial goal?
6. Prepare for Financial Emergencies
Preparing for an emergency will help improve your relationship with money.
Firstly, an emergency fund can help you pay for an unexpected expense without ruining your budget or setting you back on your financial goals.
Secondly, health and life insurance will help you offset the cost of a medical emergency or death.
Lastly, car and homeowner’s insurance will help you cover the cost of repairing your house or car after a fire or an accident.
Although it is impossible to prepare for every situation, we can’t use that as an excuse. We must plan for financial emergencies.
When we carelessly go about our lives without planning, we set ourselves up for failure.
7. Use Cash to Pay for Your Purchases
If you’re still trying to improve your relationship with money, a credit card should not be in your wallet.
Research shows that people will spend up to 83% more when they use a credit card versus paying with cash. We have more of an emotional connection with our purchases when we pay with cash versus a credit card.
For instance, I’m more conscious of the items in my cart when I’m handing over cash to pay for them. With a credit card, I don’t think about the charges until about a month later when the bill is due.
But what about the rewards I’m earning? Oh yes, about those reward points. Did you know that America and Canada have over 100 million dollars of unredeemed loyalty points?
Why is this? Here are a few possible reasons.
- We forget we’ve accumulated points
- We never have enough points to redeem
- Too complicated to redeem the points
No matter the reason, if credit cards led to your financial trouble, you should stop using them. That is to say, use cash and stay out of debt.
8. Automate Your Finances
Set up your bills for automatic payments and saving plans for automatic deposits. I know this one is hard for many people, especially those that live paycheck to paycheck. However, if your budget accounts for each dollar, automating your bills should be doable.
You may not want to use your last penny until payday for fear of an unexpected expense, but this is when an emergency fund is beneficial.
The longer you wait to pay your bills, the more likely you are to spend the money on an unplanned purchase.
Automating your bills will free up your time, but it will also hold you accountable.
9. Change Your Money Mindset
We often treat money as a goal. The more money we make, the more stuff we can buy. Money should not control us; we should control it.
Sometimes, I hear people complaining that they don’t make enough money. But I don’t think more money is the answer.
Think about it.
You won’t suddenly change your habits overnight because you’re now earning more.
See, to gain control of your money and ultimately change your money mindset, you need to change how you think about money and how you use it. As you change your money mindset, there will be a shift in how you spend your money and how you treat your possessions.
Above all, use money as a building tool to build a life that truly matters to you.
10. Be a Cheerful Giver
When our finances are out of control, we are less likely to give to others. When you improve your relationship with money, it will also help you improve your relationship with others.
I’m not surprised why God—the most generous giver of all times—tells us to give willingly. Someone who is a giver exhibit self-control, compassion, and thankfulness. It truly is the secret to a happier life.
Well, this could be my opinion, but you can’t deny that it is indeed a joyful experience. There is a connection that occurs between the receiver and the giver.
11. Life is More Important Than Money
While I encourage you to improve your relationship with money, don’t aim for perfection. The goal should be a lifestyle change.
So do what you can to improve your relationship with money, but don’t give money too much power. Equally, be careful of giving yourself too much credit as it can lead to boasting and pridefulness. Remember, God is our ultimate provider, and it is He that we should give all the glory.
Deuteronomy 8:7 reminds us, “For the Lord your God is bringing you into a good land, a land of brooks of water, of fountains and springs, that flow out of valleys and hills.”
How are you improving your relationship with money? Comment below
❤️❤️ such well rounded areas to consider! A perfect answer to my question ‘I’ve been a poor steward now what?’
God bless you!