Your Love For Money Matters
No matter how you look at it, money is an emotional journey. We work ourselves hard to earn an income, we easily spend it to survive and secretly wish now and then money grew on trees.
Sometimes stresses creep in too and financial strain can have significant impacts on our health and relationships.
From a young age we are exposed to different thoughts and practices around money, does this sound familiar?
- You find something amazing you want to buy and mumble ‘I can’t afford that’.
- You see where your new friend lives and think I will never live in a house like that
- You are always trying to keep up with the Jones, buying the new shiny object to look cool
- You are a constant tight ass. You go out to dinner with your friend and pay to the cent for your share only, and seem to always sponge off the round of drinks. Never contributing?
- You are a great saver, and always seem to have enough money to do the things that matter most to you
Realising how we communicate or behave with cash and financial objects can actually have a flow on effect to your overall financial wellbeing.
If you believe you cannot have something, chances are you won’t.
Here are four truths to help you strengthen your relationship with money, starting now.
1. Making it meaningful
Setting meaningful goals are important if you want to achieve such things as paying your home off sooner or buying an investment property.
If you have been avoiding such projects because you don’t know if you can do it, or how, start small by conducting research and speak to an expert on the possibilities moving forward.
You might be surprised as the possibilities and can set a clear path how to make what you want happen.
2. Understanding the bottom line
Whether you operate a business or run your household, understanding your cash flow is key. I know many people feel intimidated by their finances, and the more you know about how it flows the greater control you will have.
A great place to start is having transparency over your incoming and outgoing’s. If you want to pay off ‘that’ credit card it will be difficult if you constantly overspend each month. So find out now where you stand.
3. Reward Yourself
I like this and find it so important to reward yourself for all your hard work. It may come naturally to do everything for everyone first. Now it is your turn.
Book that dinner, buy that dress or save for that trip.
Wondering if you can even afford it? Include this in your regular outgoings. You may be feeling guilty, it really is time to let that go and treat yourself to something no matter how small and appreciate it wholeheartedly. You deserve it.
4. The good and the bad
When it comes to debt, there is actually good and bad debt you can take on. Without getting over complicated good debt is classified as tax-deductible or claimable, such as investment property costs.
Surprisingly to many, bad debt is your home’s mortgage because it is non-deductible debt, meaning you cannot claim anything at tax time or recoup costs of any kind. It also doesn't generate an income for you. Your home, credit cards and personal loans are the big ones you want to extinguish as soon as possible, leading with the highest interest rates first.
If you feel out of depth when it comes to managing your finances or growing your wealth, don’t avoid them as you may be surprised how you can begin living with more freedom when it comes to making your income and assets work for you.
Like anything in life, it takes incredible practice and a wealth of experience to be exceptional at something. The same applies with the money game, the landscape constantly is evolving with new rules, and opting for help from an expert is a smart step forward.