Many people are concerned with different relationships in life. But when was the last time you thought about your relationship with money?
Unfortunately, as business development professional Fahim Imam-Sadeque explains, most people don’t even consider that they have a relationship with money or whether that relationship is good or not. When people have a good relationship with money, they often don’t struggle.
A poor relationship with money can lead to a life full of miscommunication and/or trauma. So if you want to take control of your financial destiny, the first step is to heal this relationship with money.
Here are some ways you can do just that.
Pay Attention to Current Thoughts
What are your thoughts around and about money? Does thinking about money cause you excitement or anxiety? Do you dream of financial freedom or doing something to make it happen?
Take note of your thoughts surrounding money so that you properly gauge your current state of mind. Your thoughts are extremely powerful, so understanding what your thoughts are now is crucial if you want to…
Update Those Thoughts
The power of positive thinking is a popular phrase for a good reason. There’s a lot of power in thinking positively about something. When you can change the narrative about a topic from negative to positive, you can more easily effect the change you want.
So, once you understand your current thoughts about money, the next step is updating those thoughts. If thinking about money causes you anxiety, for example, start thinking about the positive aspects of it.
Don’t think you make enough money? Focus on what you used to make at an old job, how far you’ve come in your career, and where you can still go.
Budgeting is one of the simplest and most effective ways to create a healthy relationship with money. It can be daunting at first — and potentially also depressing — but it always pays off in the long run.
By creating a budget, you’ll see precisely how much money you bring in each month and where you’re spending it. In addition, having all of this written out in clear form will allow you to identify areas where you might be able to cut back to put yourself in a better financial position.
Many times, “cutting back” isn’t even that difficult. When you can see how much money you’re spending on eating out, for example, you might think twice before ordering delivery on that takeout app.
Budgeting is only one step in the process of getting control of your finances. It’s important to set financial goals and then use the budgeting process to help you create a plan to accomplish them.
One of the most effective ways is to set short, mid, and long-term financial goals. For example, a short-term goal might be to pay off one of your credit cards. A mid-term goal might be to get a raise or a job with a higher salary. And a long-term goal might be to retire comfortably at 60 years old.
When you set realistic goals, you’re more likely to get where you want in life, all while controlling your money instead of having it control you.
Visualise Your Success
Along the lines of having positive thoughts, you’ll be more motivated to continue working hard to make it all happen when you visualise your financial success. As Fahim Imam-Sadeque suggests, if you’re having trouble putting money aside for savings, picture yourself sitting on a beach or taking a holiday you really want to take.
When you can see yourself enjoying the time away from work on that holiday, you’ll be giving yourself real-life motivation to do everything you can to save the money you’d need to take that holiday.
About Fahim Imam-Sadeque
Fahim Imam-Sadeque is a business development professional with proven experience in the asset management industry. He has a Bachelor of Science in Actuarial Science from the City University of London and is a Fellow of the Institute of Actuaries. Fahim’s top skills include asset management, hedge funds, investment management, sales, and consultant & client relationship management.