We recognise our relationships with our friends and family and acknowledge their impact on our daily lives, however, we often tend to overlook the relationship we have with money.
A relationship with money is comparable and can be easily related to a romantic relationship. Relationships with money can feel good or be seemingly difficult, depending on the level at which the relationship is and the level of investment in the relationship.
This type of relationship is dependent on your behaviour and perception of it, like most relationships.
We then need to determine and ask ourselves about our relationship with money. How is your relationship with money? How do you feel when you think about money? Can your relationship with money be compared to any of your other relationships, like with food, exercise, partying and sleep?
The best thing about the relationship with money is that the outcome is determined by you. It is literally ‘what you put in is what you get out’ kind of relationship. This gives us the opportunity to determine our money relationship status and its future. This type of relationship is input driven, and the state of your relationship will drive the results thereof.
Like all relationships, the fundamentals are a great starting point to improve the relationship or maintain it at the positive level that it may currently stand at. An example of a successful relationship involves the fundamentals of mutual respect, communication, planning and commitment.
Mutual respect is key, with a lack of respect the expectation is that the relationship will not be smooth sailing. With a lack of respect for money, you should expect a rocky outcome, with failure being the most evident outcome.
Communication is the foundation for any stable relationship with money. In this case the communication is about money and not with money, although it probably would not hurt to speak to your money sometimes. Communication about money entails clearly defined direction on what the purpose of the money is, this is where planning comes in.
The very existence of a financial plan, an outlook for the prospects of your money, gives the relationship a sense of purpose. Financial planning may differ from relationship to relationship, however, what is certain is that without a plan, there is no direction for the relationship.
Commitment drives the foundation of the relationship and determines the potential for it. Cheating on your money by going against your financial plan will damage your relationship, break the trust and eventually destabilise the relationship. After all, a lack of commitment has ended several relationships.
Unfortunately for a relationship with money, it does not simply go away, you will be expected to either crumble under the pressure or to transform your relationship with money.
A failed relationship with money is basically a failed financial life. Therefore, nurture your relationship with money and it will prove rewarding.Â
*Justine Domingues is an aspiring CA (NAM) with a drive to make financial education widely available. She is the founder of Financial Zula, a Youtube channel that focuses on making financial education available. For more information, please check out Financial Zula on Youtube.
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