How’s your relationship with money? Do you have a love or hate relationships with money? Is money a source of constant stress and anxiety? Or do you have secure financial future?
Six ways to find out how your relationship with money is.
1 Your Cash Flow
Are you always waiting for payday? If you are, you are not alone. According to CNN Money, 76% of Americans are living paycheck to paycheck. This is not a healthy relationship with money and can cause stress in your day to day life. Here’s how to get out of the paycheck to paycheck cycle.
Are you proactive and executing a plan for your money? If you have a Chief Financial Officer mentality where you run the business of you and actively manage your money each month you are smitten. When you have a plan, it doesn’t matter how much you make, you love the control you have with your money.
2. Debt
You have a hate relationship with money, if you’re constantly juggling paying student loans, car loans, and credit card payments You’re burdened and financially strained by previous purchases on payment plans. Does it feel like as soon as you get paid, your money goes straight out of the door to pay all your debtors? Does it seem like you will be paying on your student loans until retirement? If you don’t have an active plan to becoming debt-free then you may be dreading your monthly payments for a very long time.
If you’re 100% debt-free you love the freedom that comes with having no payments! You aren’t overextending yourself and content with what you have!
If you are currently debt-free or actively paying more on your loans you are likely crazy in love with your financial future.
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3. Borrowing vs giving?
You have a hate relationship with money if not only are you in debt, you keep adding debt. If you consistently have to swipe your card to make ends meet, you’re stuck in the cycle of spending more than you make. Or if you ask friends or family for money that’s a sign of an unhealthy relationship with money.
On the other hand, your relationship with money completely changes when you commit to consistently giving money away. Money is the currency of the heart. What’s important to you in your heart, your money follows. If you have a compassion for organizations with a meaningful cause and you give, this is an act of love.
4. Your status with investing
You have a hate relationship with money if you think about investing, but never do it. You know that investing is a good idea and it’s something you plan on doing when the time is right, but you haven’t committed yet. Or worse yet, investing for retirement isn’t even on your radar.
If you’re investing now, you understand that time is money! You love and value planning for a secure future. By starting now, you’re allowing your money to grow and compound. This is self-care for your future self.
5. Homeownership plans
You have a hate relationship with money if homeownership seems out of reach and you feel helpless.
You respect the wallet if you are saving up now for purchasing a home, even if you won’t buy for a few more years. You take small actions to reach your life dreams.
6. How you handle emergencies
Do you find yourself in a bind when something unexpected comes up? Your relationship with money is not so hot if an emergency pops up, like a car problem, unemployment, or health bills and you don’t have savings. A CashNetUSA survey of 1000 people showed that 22% have less than $100 in savings and 46% had less than $800.
Your relationship with money is great if you have a plan for life’s unpleasant and pricey surprises. If you have a minimum of three months of expenses saved up to a year, then you have peace when crisis strikes. Here’s an easy guide to emergency funds.
What do you think? How’s your relationship with money?
