Understanding your money relationship will help you understand and manage your money. Money is powerful and it is also weak in same breathe. The power of money is not how much you have.
It is how effective you have managed your money. Your money is weak because you do not understand the worthlessness of its value. Every Dime you will ever get or earn is valuable base on your reactions or in actions.
In this journal I am going to explain 5 types of money relationship. With the purpose of getting you from where you are at, to improving your money relationship. The goal is to improve your thinking about money.
Show you how you have been using it and should use it hereafter. As well as to rewrite the identity of your money story. Let us explore these money relationships. As you read see which relationship you are in.
Managing money relationship.
First on our list of money relationship is managing money. This is people who are super careful about money. However, doing so out of fear. The fear of not having enough for rainy days or retirement. Basically, robbing themselves the joy of enjoying their money.
Or even enjoying the present. Not able to give or help someone in need because you always thinking there is not enough to share. Will not buy anything above a certain price point, even when it worth it, or is needed.
Even though this might help in the long term it falls short in the present. This means you live in constant fear and worry. You are easily stressed over the smallest money issues. It is great to manage your money well.
However, it cannot be at the expense of your well-being. Think about it, you are trying to save for the future. But the possibility of you not enjoying it in the future is strong. Why? Because of the stress it causing to secure the future.
Managing your money must be practical and sensible. Saving money and damaging your well being in the long run is not worth it. Let us face it, you need a pair of special shoes for work but refusing to buy it. Eventually you are going to damage your feet.
Even lose your job because you did not comply with the rules. Then you are left without an income to keep saving towards retirement or the future. Money management should be looked at from a holistic perspective. Taking everything from the present to transform the future.
Overspending money relationship
Many of us money relationship is simply about overspending on everything. We are living in a culture where you feel the pressure of not having the latest technology or trends. How many pairs of shoes you own that you have not wear in the past 3 months?
How many clothes you bought but never wear? To only realize you had something when you are reorganizing and decluttering. Having money is not freedom to be excessive or overspending.
Overspending is the fastest way to ruining your life. Thinking that you need everything that’s trending is an addiction. Also, meaning you have deep self issues and use money to self medicate. You should never live your life trying to be relevant.
Getting everything to keep it that way. Instead everything about life is relevant. Living life is what makes everything else relevant. You don’t need the latest trends to stay relevant. What you need is a teachable spirit and surrender to change.
My advice is everything you plan on buying is ask yourself these 4 questions. Is this a need or a want? Why do I need or want this item? How does the product enhance my personal experiences?
Can I afford this product without sacrifices? These questions should help you decide if it is sensible to make the purchase. Overspending is a medication that does not heal anything. But, will lead to toxic financial crisis.
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Naive Money Relationship
Naive money is a relationship with your money thinking it will always be there. So, you spend as if spending is replenishing you will stack of money. In other words, you are lacking experience and practicality with money.
So, spending $5 every day on a cup of coffee does not matter to you. Because you are thinking it is just $5. However, long term that $5 turns into $1825 for the year. Add another 9 years and that is $18250.00.
I am not saying you should not buy your cup of coffee or lattes. What I am saying is not do it blindly. Or doing it expecting everything to turn out fine. Every penny adds up over time.
So, always think long term when you spend money on something at least 3 times per week. This means it is a habit you should think about whether you can afford to do this more than twice per week.
Money does not come out of thin air, unfortunately. Apart from inheritance which still means someone had to work for it. Most of us must work for our money. So, taking care how you use it, make sense. Not thinking you can spend as you like without running into problems later.
Having access to money does not mean permission to buy whatever you wish. It means managing it with wisdom and practicality. None of us are sure what tomorrow looks like. The best we can do is try to be prepared financially.
Express money Relationship
We are living in a world where everyone wants instant gratification. So, we have a culture of fast money. We need to get it fast. When that does not happen many of us end up being depressed. We try ‘get rich quick schemes’ to no success.
We listen to people who talks about getting money fast. However, sorry to disappoint you but there is no such thing. There is no fast way to money. Not even illegal means.
We all believe we could make money fast at some point. Just to realize it does not happen as you think. Making money requires intentionality, practicality and absorbing reality.
If your relationship with money is to get money on express, you are living in a dream world. That dream will never happen. If your hope is to hit it big in gambling, you are wasting your time.
To be honest that is living with unrealistic expectations. Having this type of money relationship can only disappoint you. You must snap yourself into reality. The pursuit of money requires hard work and endurance.
Even though this does not guarantee a lot of money. At most you will have enough to be comfortable, if use wisely. It is not that you can’t dream of a windfall. However, you must be realistic to the possibility of that not happening.
Yearning money Relationship
Our last money relationship is those of us who are yearning for money. What I mean by this, is instead of planning on how to make money. We instead sit around hoping it will come to us somehow. Sorry that I must be the bearer of bad news.
However, hoping for money does not make it magically appears. Neither sitting around hoping someone sees that you are in need and come to your rescue. Even though many of us do help people out. Still, sitting around hoping people do, is simply wrong and lazy.
Money yearning is saying I do not want to work. Also, that there is something wrong with working. It is much more likely that someone will help you along when they see you trying.
Having money is not wishing you would come into loads of it. It requires work, commitment and some sacrifices. The quicker you jump out of your money daydreams, the easier it become to make money.
This a Wrap on Money Relationship Savvy Dimers.
Money is something we all need. So, having a good relationship with it, make sense. Money should never rule your life. Imagine you create something and somehow the same thing controls you.
That is like being a king and bowing to your subjects. Money is your subject not your king. Make money work for you, not the other way around.
Having a good relationship with money requires diligence and a plan.
This means you achieve your goals with time. Dismiss the overnight get rich schemes and success. Stay in harmony with your reality and make decisions with that in mind.
Which category you fall in? Do you manage money out of fear? How about overspending and being naive about money? Or maybe you are the fast money type.
Maybe it is daydreaming about money. Let us know in the comments section below. Let us know if you appreciate this entry by liking and sharing it. Thanks, have a great day.