There are many individuals who have a difficult time dealing with money. Childhood traumas mingle with both the good and bad things that have happened to you as an adult. Only a few individuals take the time to think about what money means to them and how they might better manage their finances.
Use these five questions to get a better handle on how much money you have and how to spend it wisely.
1. What is the first recollection you have of money?
It’s likely that your family was the first place you encountered the concept of money. You were exposed to your parents’ financial practices. If you’re like most people, you undoubtedly judged your family’s possessions by the quality of other people’s homes and automobiles. A sudden job loss or sickness might have resulted in a lack of vacation time. Even if you were raised in a comfortable environment, you may have taken money for granted that you no longer do now that it is yours to keep.
Reassessing your connection with money begins with identifying some of these early experiences. Is your life improving as a result of the choices you are making? Or are you unwittingly reinforcing bad financial habits that may harm you in the long run?
2. Do you feel that money is a servant to you or a master?
When it comes to money, it might make us feel like we’re racing on a hamster wheel, unable to move any closer to our goals. For those who never give up on their pursuit of the next dollar, they’ll be left with nothing but money and an endless number of vacation days on their calendars when they retire.
Making the most of one’s financial resources is a talent that may be used to help one go where one wants to go in life. Consider how you can make the money you already have work for you instead of the other way around.
3. With the extra money, what are your plans?
You’ve surely heard of research showing that lottery winners don’t live better lives after winning the jackpot. This is a dramatic illustration of a well-known axiom: money cannot buy contentment. Even more so if you spend 40 hours a week on the treadmill seeking more money.
Remember how fast even the nicest new vehicle fragrance would fade if having more money gets you thinking about all the things you would purchase.
In the event that you were financially secure enough to maintain your family and live well, you may want to reevaluate your work path.
You may not be able to “fix” some of your present problems with more money, but asking yourself what you would do if you had more money might lead you to new choices that enhance your overall quality of life.
4. If you had extra time, what would you do with it?
Imagine not having to go to work. You have the freedom to do anything you want each and every day. What kind of week would you like to lead? What are you up to these days? What are your favorite pastimes? What is your intended destination? In what company are you spending most of your free time?
When we’re busy at work, we tend to put these things on the back burner. You may need to modify your work-life balance if your income isn’t allowing you to spend time doing what you enjoy with the people you love.
5. If everything went according to plan, how would you wish your life to look?
This article should have gotten your mind turning toward the idea of how your connection with money may be hindering the most effective use for it.
Working with retired people, I’ve learned that they have no positive memories of how much money they made or how many items they acquired in retirement. Because they utilised the money to achieve key life objectives, they say their lives have turned out nicely. They claim that their wealth allowed them to follow their interests. With time and money invested in health, spirituality, and self-improvement, their feelings of well-being rose.
We want you to reflect back on your life with fond memories when you reach retirement age. We’d love to show you how our Life-Centered Planning method and interactive tools might help you improve your relationship with money.