5 Steps For Transforming Your Relationship With Money

5 Steps For Transforming Your Relationship With Money

Money is a tricky thing. It’s hard to talk about, even harder to understand and even more difficult to navigate. With that being said, here’s 5 tips that I can give you that will help you create a healthy relationship with money.

Money is a tricky thing. It's hard to talk about, even harder to understand and even more difficult to navigate. I'm not a financial expert—if you want that, there are plenty of people who have it all figured out. But I have found that money is an incredibly personal thing, and when you start talking about it with other people, something magical happens: You realize how much we all have in common.

I have had my fair share of financial struggles. My very first self-built enterprise came crashing down during the housing market crash of 2008—leaving me with no choice but to claim bankruptcy. And yet, through it all, I managed to stay strong and continue working towards my dreams. It wasn't easy—in fact, it was downright painful at times. But I knew that if I wanted something different from the life I had been living, then I had to transform my relationship with money and face my fears head on.

With that being said, here are 5 tips that I can give you that will help you create a healthy relationship with money:

Stop Ignoring the Money Elephant

The money elephant is in your living room. It’s not going away on its own, so you need to address it. Don’t ignore it or pretend it doesn't exist, and don't avoid making decisions about how to deal with it.

The first step is to stop avoiding talking about money—to yourself and with your partner/spouse. If you can do this without blaming each other or getting emotional, great! But if things get heated, that's okay too—just remember that this is an exercise in identifying emotions around money rather than a discussion of whether or not someone should pay for dinner tonight.

Use your money to vote for what you want

Inherent in this step is the idea that money can't do the work for you. It's a tool, not a solution. In order to vote with your money, you must first decide what you want it to vote for—and why.

This is an important step because it requires you to think deeply about how much you're spending choices reflect who you are and what type of world you want to live in. What kind of person buys $1 million dollar houses? What kind of person sells plastic toys in China? How does voting with your dollars affect other people and our planet?

You have the power to use money as a tool for creating change on a personal level, as well as changing society at large by voting with your wallet (a quick reminder: there are no political parties here!)

Understand your relationship to money

You can start by getting clear about how your money is actually affecting you. Money is energy, and it's important that we understand the way in which our relationship with money impacts every aspect of our lives.

Our spending habits reflect our values as individuals and as a society: what we choose to invest in gives insight into who we are at a deeper level than just the most superficial appearances.

Money can be an incredible source of stress or joy—and everything in between. It's a tool for self-expression and creativity; it can be used to create freedom and independence, or to restrict others' freedom through dependence on those with more resources than oneself

Get clear about your financial goals

  • Get clear on what your financial goals are.
  • Identify the feelings you want to have about money.
  • How will your financial goals help you achieve your life goals?
  • What steps do you need to take in order to achieve those financial goals and feel good about money again?

Talk to other people about their money habits

A helpful step to understanding your relationship with money is to understand the ways other people relate to money. Talking to other people will give you insight into how they handle their finances, what their financial goals are and how they’ve achieved them.

Talking with someone who has been through similar experiences can help you realize that there are many different paths in life when it comes to managing your finances. You don’t have to follow the path that others have traveled before you—you can create your own path!

Transform Your Relationship With Money

There is no need to rush into anything, and you can start taking small steps to transforming your relationship with money. The best thing you can do is begin to talk about money with other people, so that you know they are on the same page as you when it comes time for financial discussions. In addition, using your money as a way of advocating for what you want will help ensure that you have more control over the outcome of any future financial interactions in life.