Financial Tips

Improve your relationship with money in these 3 simple steps

By January 30, 2015 June 22nd, 2015 2 Comments

healthy_heartMoney can be a real source of stress in our lives and in our relationships if not managed properly. Just like a personal relationship with a friend or spouse, your relationship with money needs to be nurtured. You can’t ignore your finances and expect a positive outcome. If you want to improve your relationship with money, start with these 3 simple steps.

1. Be honest
Just like in a relationship with another human being, your relationship with money will only improve when you are honest with yourself about your financial situation. Maybe you have loads of credit card debt or student loan interest that is piling up month after month. Let me tell you right now- denial is not going to make that debt disappear. If the thought of sitting down and seriously examining your current financial situation leaves you feeling overwhelmed, try calling a friend who you know is good with finances (and whom you trust) to help you sort things out. Take responsibility for your finances and commit to taking a good hard look at where you stand.

2. Be realistic
This goes hand in hand with being honest. When you are unrealistic about your finances-i.e. you think you have more money to spend than you actually do, you are convinced you deserve the nicest things right NOW, you hoard your money in a non-interest bearing account when you could be investing it- you’re not doing yourself any favors. Think in realistic terms about your money in relation to your goals and what you want for your life; not just now but in the future. When shopping and planning for purchases always consider needs versus wants. Making sacrifices now can lead you to where you wish to be down the road. So ask yourself and answer this question, realistically: How can you get from where you are now to where you want to be down the road?

3. Consider the return
When making certain purchases, it is safe to say that quality is king. Quality is something that you need to consider above all else. This is a hard thing for some people, myself included, who love a good “deal”. However, there are times when getting the lowest price doesn’t equate to the best deal. Think of your purchases in terms of being an investment and always consider the return. When you invest your money in a cheap product that is meant to last you a long time, chances are you won’t get a good return on that investment and will end up spending more money to replace that product than you would have had you purchased the higher quality product to begin with. Just like you sometimes have to sacrifice a “want” for a need, sacrificing the better “deal” to get the better quality can save you in the long run.

These things might seem like common sense but the truth is that people don’t always remember to treat their relationship with money kindly. All relationships take work and if you want to get the most out of your relationships you need to give them some attention; money included.

 

 

Author: Abby Gruber

abbyhsAbby is the Marketing Strategist and Copywriter for Richwood Marketing. She enjoys helping businesses discover and promote what makes them unique as well as helping to capture those ideas in writing. Abby is responsible for maintaining Richwood Bank’s blog and is always open to hearing your ideas and suggestions. If you have a certain topic you would like covered, please email her at agruber@richwoodbank2.wpengine.com.

Join the discussion 2 Comments

  • I really like your advice to be honest with your money. You really need to know how much money you have an live within those means. Many people go into debt because they don’t know how to live within their means. Do you have any other financial tips?

  • Ivy Baker says:

    I am a young adult and I want to be in a good financial state. So, I liked that you talked about how you should be honest with yourself with regards to money. That is good to know when you are young.

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