How is your relationship with money?

Man writing notes about his relationship with finances

Photo by Dziana Hasanbekava on Pexels

How is your relationship with money?

How is your relationship with money? Finances and money represent one of the principal concerns during our adult lives. Much of our effort and quality of life will depend on how we manage our finances while we work. During this time, we must plan for our retirement, and even when we are retired, we must be wise in managing our finances. Our relationship with money will be a lifelong affair.

Before we dive into tips on how to save money or achieve a sustainable financial life, I have a few questions for you:

  1. How do you feel about money?
  2. Is money always a concern? Why?
  3. Do you avoid, or are you happy when you discuss your financial situation?
  4. Are you too protective or free with your finances?
  5. Did you spend more money than you earned?

It will sound simple, but take a piece of paper and try to answer these questions as an exercise in self-discovery and self-assessment. You will see all the feelings you have about money.

Growth mindset in your relationship with money

Humbly accepting the state of our relationship with money is the beginning of developing a growth mindset to manage our finances wisely.

Our relationship with money begins when we are children. If, as children, we see our parents have a tense, problematic, or excessive relationship with their finances, it is very likely that we will repeat the same patterns as adults.

Suppose we grew up in an environment where spending money on ourselves was unnecessary and excessive. In that case, we probably feel guilty as adults after purchasing for our enjoyment.

We are not born knowing how to handle our money or our emotions about it. Managing our feelings with money is a skill that will save us from making the wrong financial decisions in our adult lives.

Learning these skills should be on our priority list because our relationship with money will affect every aspect of our lives: relationships with our children, marriage, our relationship with ourselves, and our environment.

Developing your relationship with money

It is my pleasure to share with you some books that can help you start the journey to improve your finances from the inside out. I hope you are taking notes:

1. The Psychology of Money by Morgan Housel

The Psychology of Money demonstrates how our relationship with money depends more on our psychology and emotional patterns than on mathematical formulas and analysis. Morgan Housel introduces the reader to 18 short stories that confirm our behaviors, beliefs, and conditioning shape how we manage our money in daily life.

“The ability to do what you want, when you want, with who you want, for as long as you want, is priceless. It is the highest dividend money pays.”

2. Rich Dad, Poor Dad by Robert Kiyosaki

Rich Dad, Poor Dad, is one of the world’s most recognized financial education books. Robert Kiyosaki tells the story of two parents trying to educate their son about life and wealth. Both parents manage money according to how each one sees life. In this way, throughout the book, we can appreciate how Robert Kiyosaki contrasts the conventional notion of finances with another more innovative and informed approach.

“An asset is something that puts money in my pocket. A liability is something that takes money out of my pocket.”

3. The Richest Man in Babylon by George Samuel Clason

The Richest Man in Babylon was published in 1926 by George Samuel Clason. The book tells the story of how Arkad became the wealthiest man in Babylon following eight principles that, even almost 100 years later, continue to be foundational for wealth and financial management.

” #1: Pay yourself first.”

You can get these books in hardcopy or listen to the audiobook version while driving to work, cooking, or exercising. Remember, we need to learn the skills of the best financial advisors to master our finances.

Life Insurance Questions?

We hope that this information on how is your relationship with money is useful to you.

If you’d like to learn how we can help you plan your retirement, call Empower Brokerage at (888) 539-1633 to speak to one of our Life and Annuity experts or leave a comment down below.

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About Jessimar Lopez

Jessimar Lopez graduated from the University of Puerto Rico Río Piedras Campus with a bachelor’s degree in audiovisual communications and participated in a study abroad internship at the University of Málaga with the sponsorship of the Benjamin G. Gilman Scholarship. She joined the Empower Brokerage team in 2022 as a videographer and editor.

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