A Helpful Guide to Knowing Your Relationship with Money
Money is fundamental to modern society and is crucial in shaping everyone’s lives, regardless of occupation and age. It allows people to pay for necessities and sell items to others. This worthwhile investment also helps you save for the future and gradually build wealth.
While you may not realize it, these habits shape your relationship with money. Everybody has a complex relationship with their finances based on their values, and how we process and organize it is unique. Some may be serious, while others are irresponsible in managing it. Fortunately, it’s never too late to transform your relationship with money.
If you’re willing to practice better habits and secure your monetary future, this article will explain why you need a financial style and the three dimensions of money. We’ll also tackle why you should know your relationship with money and what to do next.
Financial Style: What Is It and Is It a Fixed Habit?
From a young age, the media exposed us to messages about money that shaped our attitudes. Even siblings in the same household may have different perspectives on money.
Our financial style can evolve as we age or experience life-altering events. For instance, a life-threatening experience may urge you to prioritize experiences over saving money, while starting a family may encourage you to invest in your child’s future. Ultimately, our relationship with money guide is a dynamic one.
3 Dimensions of Money
The different aspects of money management aren’t usually equally significant to everyone because some may prioritize acquisition over organizing them. When assessing these factors, consider your preferences and habits and how you transform your relationship with money. After discussing financial style and how it evolves, here are the three dimensions of cash.
1. Dimension of Acquisition
The dimension of acquisition is the required amount of money for an individual to feel secure instead of how they got their wealth. People have varying beliefs about money; some consider it the root of all evil, while others believe there’s never enough. Other individuals also won’t consider accumulating wealth a priority.
In extreme cases, individuals may break laws to accumulate wealth. Even those already wealthy can fall into the trap of thinking they need more.
2. Dimension of Management
While there’s nothing wrong with retail therapy, remember that compulsive spending can make you struggle to manage your finances, especially during urgent times. However, your financial management habits are unique, including how you pay the bills and manage your investments. Some people meticulously track every expense, while others may be disorganized and put off paying bills, leading to a lack of awareness about their financial situation.
You can improve your relationship with your finances and become a more responsible spender by setting goals, setting and sticking to a budget, checking your credit report, and reviewing your bills and statements. You can also seek professional advice from a financial advisor.
3. Dimension of Spending
There’s nothing more rewarding than getting your hard-earned money. While it may be easy to bask in the glory, you must ask yourself how you’ll use it. People usually hear about those who frugally save all pennies throughout their life and have a lot of money in their bank account or make millions but have nothing.
You should also know that while most individuals spend their finances carefully, they have moments where they overspend.
Knowing Money Relationships: Its Significance and What to Do Next
Having a healthy monetary relationship is essential for avoiding financial struggles. However, if you have an insecure relationship with money, you must identify and change unhealthy habits and seek professional help.
Establishing a Safe and Stable Financial Relationship
Our values significantly affect our spending, saving, and managing habits. Some may be meticulous with their finances, while others lose control. You can improve your relationship with your funds by acknowledging bad habits, setting goals, and seeking professional advice.
For more relationship with money guide, visit The Energy of Money! Dr. Maria Nemeth has an online course to help you become more financially responsible. Connect now!