How to improve your relationship with money
Phill Holdsworth
Money Habitudes? Certified Facilitator and Multi Award Winning Money Psychologist helping people understand their relationship with money - what drives their choices and behaviours.
Whether you’re experiencing financial difficulties or not, having a healthy relationship with money can be beneficial to your mental health. It’s about understanding your emotional relationship with money, what drives your choices and behaviours. Financial Wellbeing is not just about having enough money; Knowing your money psychology can help you make sound decisions that put you on a path to financial stability.
Many people struggle to manage their finances, whether it’s due to the current economic climate, unconscious limiting beliefs, the lack of knowledge on budgeting tips or simply because they don’t know how to approach the subject. The connection between money and mental health is undeniable and mental health is complex.
Because we live in a world where money is needed to survive, too much emphasis on it can lead to stress and anxiety. Many feel overwhelmed by the pressure of managing their finances, which can take a toll on their mental, physical, and emotional health, so it is not surprising that less than 50% have any kind of financial plan or carryout any sort of budgeting. Why would you visit a place that gives you so much stress and anxiety?
The way we view money, handle it, and think about it can have a significant impact, 93% of the working population worry about money and 77% say it affects their work. 1 in 4 say that money worries and conflicts are often the cause of arguments in relationships, misunderstandings between family members, even feelings of guilt or shame and ultimately relationship breakdowns. Those experiencing financial stress are twice as likely to experience suicidal thoughts. But it doesn’t have to be this way! In fact, there are many ways to improve your relationship with money and reduce stress. Let’s explore some tips that could benefit you in these difficult times.
The PEARL Budgeting Technique
One of the best tools for improving your relationship with money is the PEARL budgeting technique revealed by Vince Scully, a leading Wealth Consultant. PEARL stands for Postpone, Eliminate, Avoid, Reduce, and Love. With this technique, you start by postponing spending on non-essentials, like waiting a week longer to have your hair done, it’s amazing how much this saves over the long-term. Then you eliminate any unnecessary expenses that are not helping you reach your goals, such as gym memberships that are no longer used. Next, avoid buying things on credit or taking out loans unless absolutely necessary; if you do have debt, find ways to reduce it as quickly as possible. Also, avoid food shopping when you are hungry and those impulse buys when you’ve had a bad day. Finally, learn to love what you have instead of constantly striving for more; focus on experiences that give you lasting memories rather than material possessions that have a finite life!?
Money Habitudes by Syble Solomon
Another great tool for understanding the relationship between money and mental health is the Money Habitudes Online Assessment by Syble Solomon. This tool was designed to help people better understand their attitudes towards money through conversations. It is also designed for couples looking at their finances together. By having honest conversations about what each person values most financially and why they value those things so much can help couples work together towards common financial goals while also understanding each other's individual perspectives! This system helps people become aware of their own biases when it comes to handling their finances so they can make wise decisions when dealing with money matters!????
The assessment covers topics such as spending habits, savings habits, attitudes towards debt, risk tolerance levels (how willing someone is to take risks with their finances), comfort levels, etc. It provides an individualised analysis based on one's responses which helps them understand how they feel about different aspects related?to money.?Knowing these details helps people make better decisions when it comes to managing their finances and reducing stress caused by money issues.
Mental Attitude Towards Saving
When it comes to improving our relationship with money and reducing stress related to financial matters, it is important to have a positive mental attitude towards saving. This means having realistic expectations about how much you can save each month without feeling overwhelmed or guilty about not having enough saved up for emergencies or unexpected expenses. Setting reasonable goals for yourself will help you stay motivated and focused on achieving those goals without putting too much pressure on yourself. Additionally, creating a budget plan that works best for you will help keep track of expenses so that you know where every pound goes.?
Seeking out Professional Help
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Working with a financial coach who specialises in helping people discover their own personal habits around finances can be beneficial in gaining control over household budgets, savings and planning for retirement. Everyone's individual situation is unique so if needed don't hesitate to reach out for professional advice - they're here to help! In addition, for those experiencing financial difficulties, gaining the help of a free debt advice [1] agency is paramount and the earlier the better. They are confidential, will treat you with respect, will not judge or criticise but will show understand and compassion whilst supporting you back to a strong position.
With these tips in mind, hopefully now managing finances won't seem quite as daunting allowing more time for focus on other important aspects of life including family, friends, and self-care!
In conclusion money plays an important role in our lives, and it can have a major impact on our mental health if not managed properly. No one should feel powerless when it comes to managing their finances or struggling with anxiety due to financial worries — there are tools and resources both online and in-person available that can help! Learning how to manage your finances wisely is key in order to reduce stress levels associated with money matters.
The PEARL budgeting technique provides individuals with an easy way to prioritise their spending while Money Habitudes helps reveal unconscious motivations behind certain financial decisions so people can become more mindful about their spending and savings habits and ultimately achieve financial wellbeing over time. Maintaining a positive attitude towards saving, being realistic and taking small steps allows it to become manageable and, being willing to ask for professional help in times of uncertainty can also provide much needed encouragement and guidance. By understanding the relationship between money and mental health one can create positive financial wellbeing, become empowered to better manage their finances and lead healthier lives overall both mentally and financially!
[1] Debt Advice Agencies: