Money is something we all need no matter how different our lives are. Sometimes, we don’t think our decisions can affect us financially in future but when the time comes, we are left with nothing but regrets. We keep making the same mistakes and are left with financial problems, the problems that could have been avoided if we were careful. If you are having trouble managing the relationship with money then you are at the right place.

You have to begin with changing your perspective towards money. Money is not just a piece of paper that we can just waste without knowing the consequences. It helps us in securing our future, pay our bills, achieve our dreams, help the poor, etc. You have to maintain a good relationship with money as it comes with benefits.

A relationship should be nurtured with love and It doesn’t matter if it is with money rather than some person. A healthy relationship with money defines your financial goals, habits, and how you spend it. It also suggests that you must not spend more than what you earn.

What we need to know is that there are ways through which we can improve our relationship with money and if these ways are applied with diligence, you can improve your relationship with money. Let’s know about the ways through which you can improve your relationship with money.

1. Know your needs

People keep buying stuff unnecessarily and indulge themselves in debt. Their situation gets worse when they are left with no money to pay their debts and to maintain a sustainable life. For the goal of spending money wisely, one must know the difference between needs and wants. We should also remember that there are certain things available in our market that if not bought, would not affect our lives in any way.

Our first priority should be to identify the difference between what we need and what we want. Our wants can be avoided but our needs have to be fulfilled. For example, food, healthcare, shelter, clothing are our needs but wants can be anything enjoyable.

 There is a significant difference between needs and wants economically. The need is considered to be vital for survival whereas wants are not necessary for a person’s survival. While the needs remain constant and can stand test of time, wants may change from time to time. Our goal here is to make sure that you have enough funds saved for an emergency so that you don’t have to suffer in the future and be far away from debts as much as you can. Thus, having a healthy relationship with money.

Further more, when streamlining your budget, you need to make a list of needs and wants, and probably see if you can cut back expenses on wants that you really don’t need so that you can save and pay off debts.

For instance, if you own a car, assuming you are using it to commute daily to and from work, you could actually park it and get a bike that you can use partially or daily to commute instead of a car, and probably cut expenses on gas as well car maintenance. You can also walk to work with the same intention of cutting back costs.

Alternatively, you can sell the car , pay off your debts, and try get a cheaper option like a motorbike or bike that will help you to commute. You just need to work your way around this.

You can also cut costs on monthly subscription like premium TV channels and all that if you don’t really need them. For instance, l usually watch free to air channels, this helps me save some few extra bucks at the end of every month.

2. Review your current financial habits

It is important to know what are you doing wrong? Because without the answer you cannot find a solution to your current money relationship bring a change in your habits. You need to write down all the expenses that have occurred throughout a month. Discover what you spent on and how much. Pick out all the necessary items on that list and keep them unchanged. If some expenses are unnecessary then cut them off. Expenses that have the possibility to be compromised should be avoided.

Remember why are you doing this and how much that means to you? Sure, it can be hard letting go of some stuff but your goal is worth it.

3. Set financial goals

The financial goal is nothing but a target that is set to manage money. The objective of setting a financial goal is to give you a different perspective on the concept of money. You will see things a lot clearer and how little decisions you take affect your financial health.

You must be thinking about what actually is a financial goal and how to set it? To make it clearer, let me give you an example. Suppose, for the last few months your bank account is left with insufficient funds. You are not feeling financially secure so you want to bring change. What you do to solve this problem is make a plan. It will include your ways of spending and how you can save.

The plan can also be set for other purposes such as paying off debts, saving for vacation or retirement, setting up an emergency fund, buying a home, etc.

You have made a financial plan and goal so what now? Well, you have just began. You need to be organized, keep track of cash inflows and outflows, stay away from unnecessary spending, manage your spending habits, and if you are interested, invest your money to yield profits in near future.

4. Focus on the bigger picture

Suppose in future, you want to achieve your life longing dreams like starting a business, buying a house, or anything. You may have another dream that requires a certain amount of money that you don’t have. You already have debts that you didn’t take care of before that ruined your credit score. So now you can’t get a loan from financial institutions, will you be happy?

Of course, you wouldn’t. Seeing your dream getting away from you will be heartbreaking and you will have only one thought in mind, why didn’t I keep a healthy relationship with money?

But this will occur in future if you don’t make a decision now. You still have time and you can improve your financial situation just by being organized. This whole process may be overwhelming but it is worth the financial security that you will have over the years.

Nobody likes to be broke and in debt. You need to take the right step.

5. Start with small steps

Changes can be daunting. Spending money may have become a habit for you and it does not seem easy to change it immediately. You would have to bring changes in your lifestyle gradually so that this process can be bearable.

For example, if you want to save up money for some occasion, say it is for a birthday or a wedding. You start by cutting off expenses that are not needed for survival. Like if your workplace is not far away, try walking there or take a

subway. This way, you will save a lot of money that is spent on gas and you will be helping the environment too.

Don’t just stop, keep finding other ways through which you can save money. Little by little you will have enough money to fulfill the goal and you will feel good about yourself for your efforts.


As you have seen above, for you to build a solid relationship with money, it takes some kind of a financial discipline and a working plan for you to reach there. They say Rome wasn’t build in one day, you need to try, fail, try, and fail and try again till it works. 

This is just the beginning of building your relationship with money. Surely it will happen gradually, you will have to be consistent and understanding of your situation and keep trying.

Leave a Reply

Your email address will not be published.