Your Relationship With Your Money
We all have a relationship with our money; we just do not know it. Some of us have a good, healthy relationship with our money; others have a bad relationship.
Believe it or not, your money relationship can undermine your financial decisions. Money fears are one type of relationship you can have with your money. We make financial decisions based upon our money fears. Do you have any money fears? If you have money fears, you will make cautious financial decisions; being cautious with your money is not all bad of course.
Your money fears should not get to the point where those fears prevent you from making financial decisions that would benefit you. You want a healthy relationship with your money because it determines your entire financial structure.
Money Worries|Your Financial Fears Take Over
If your relationship with money scares you to the point where you worry about every bad financial thing happening to you; you have a bad relationship with your money. If you worry that the stock market will never rebound again, you may lose your job, you may run out of money during your retirement then you have a bad relationship with your money.
Out Of Control Spending|You Cannot Handle It
One sign that you may have a bad relationship with money is if you cannot handle the management of your money. If you spend money you do not have, you cannot handle it. If you max out your credit card limits and carry large credit card balances, you cannot manage your money. If you always pay your credit card late or miss a few payments now and then, you cannot manage your money.
Change Your Relationship With A Budget
If you have a difficult time managing where your money gets spent, start a budget. By using a budget you can track where every dime gets spent and then evaluate where to make changes. A budget will hold you accountable. To make a budget more effective you have to be willing to commit to the process and write down every single thing you buy; otherwise, it is a waste of your time.
A Good Sign You Can Handle Your Money
Having the ability to manage money properly means spending only that money which you have. Living within your means is the term many financial planners use to describe someone who can properly manage their money. If you manage your money well, you will have more of it. Think about it, if you are not wasting money on late payment fees or interest, you can use that money to invest or pay down other debt.