7 Methods to Build a Healthy Relationship with Money

Healthy relationships are based on trust, not fear. When it comes to money, living in fear of not having enough is a mental state that can lead to high stress and unmanageable finances. Trusting in your income, budgeting, and savings strategy instills peace of mind. This is the road to having a healthy relationship with money.

Fear is an emotion. There are factors that lead to financial fears, such as the heavy burden of paying off debt. For some consumers, that fear leads to irrational decisions, further complicating the situation. One example of this is refusing to pay any bills. That type of action won’t help you achieve financial peace. The following positive steps will:

Step #1: Acknowledge your situation

Acceptance is one of the keys to long-term happiness. Many folks live in denial when their financial situation becomes uncomfortable. They put off paying bills, make rash spending decisions, and only address problems at the last possible moment, like when a utility is about to be shut off. To avoid this mentality, it’s important to acknowledge the reality of the situation.

Step #2: Own your responsibilities

Once you reach a level of acceptance, the next step is to own your responsibilities. Bills need to get paid. Some expenses must be cut back. This step is about looking at the whole picture and figuring out what needs to be done to achieve financial security. Think of it as building the right mindset to move forward.

Step #3: Plan your financial future

The amount of money you have on hand is just a number. Break it down into smaller numbers and allocate funds where they’re needed most. Create a budget by listing all your expenses and classifying them as “essential” or “non-essential,” then weigh them against your income to make sure you have enough. Set short- and long-term goals for your financial future.

Step #4: Commit for the long-term

Healthy relationships don’t happen overnight. They take time and commitment to build. Financial wellness is no different. Your relationship with money will improve over time as you become more comfortable with the system you built. Make the commitment to invest that time. This is marathon, not a sprint.

Step #5: Celebrate small victories

Life isn’t easy, so there will be setbacks along the way. It’s important to celebrate the small victories when they happen. A good example of this is paying off one of your credit cards. It’s OK to take your spouse out for a reasonably priced meal when that happens. Just make sure you pay cash for it, so you don’t start the debt cycle over again.

Step #6: Enjoy life to the fullest

You don’t need to have a lot of money to enjoy life. A walk in the park or a day at the beach are free. Spending time with your loved ones won’t cost you a dime, but it will give you memories that last a lifetime. Learn to look at life without putting a price tag on it. Respect money, but don’t worship it. It will not fulfill you. Focus on what’s important.

Step #7: Save something every month

Put a few dollars away in a savings or retirement account every month. Do both if possible. Those financial fears will dissolve when you have some security. If you’re consistent with this, you’ll reach a place in life where money becomes less important and life itself will take center stage. Balance will be achieved. That’s the very definition of a healthy relationship.

Kevin Flynn

Kevin is a former fintech coach and financial services professional. When not on the golf course, he can be found traveling with his wife or spending time with their eight wonderful grandchildren and two cats.