Picking up where we left off in Part One, let’s continue to examine how COVID-19 has changed our relationship with money.
Money is Freedom
Why do you pursue money? Hopefully, the answer will not consist of things like: “I want to buy a car.” Frame money in terms of relationships—what it means relative to those you love and care for, your spiritual orientation, your sense of meaning and satisfaction, your obligations to others, what makes you comfortable and uncomfortable, your legacy.
Try to answer these questions out loud:
- How do you define money?
- How much is enough?
- What challenges do you see in the next 10 years?
- How does money relate to the alternatives needed to meet each positive or negative challenge?
- Is money a resource that can power alternatives or a constraint?
- How does money relate to what you wish to experience, the outcome desired?
Money should not define you. Your life should run your money—your money should not run your life. Again, what is the money for? Make a healthy relationship with money your watchword.
Money & Spending Fears
In our quest to understand our relationship with money, we need to be careful that we don’t develop a fear of spending. To conquer this unhealthy fear, align your spending with what you value.
The importance of saving cannot be emphasized enough, but if you cover the basics, like having an emergency fund and saving consistently for retirement, spending money on yourself sometimes is no crime.
Ultimately, money is a tool that helps us to do things and enjoy life. There is no reason to deny yourself happiness because you’re paralyzed by money fears.
As long as you are not up to your eyeballs in debt, you can allow yourself a little fun here and there. The key is to do it responsibly by creating a comprehensive financial plan and identifying what truly makes you happy.
If you have a fear of spending, take these following steps:
Create a plan. It should outline how much you bring in, your expenses and savings. Knowing what you can afford can alleviate your stress when you’re concerned about cost.
Identify your values. What makes you the happiest? Money can create happiness if you use it wisely. A general rule of thumb is to choose experiences over things. Material possessions tend to lose their luster shortly after you purchase them, whereas memories of a fun trip with family or friends last for years.
Prioritize your spending. What’s more important to you? You must prioritize your spending so that you can enjoy your discretionary income fully.
For example, if a vacation with your old friends is your top priority, you can skip a happy hour out with coworkers. Conversely, if building good relationships with coworkers is more important, then allow yourself to spend money on events that bring you closer to your goal.
Spend your time. If you can’t think of anything that you’d rather spend your money on, maybe it’s not about the money.
Think about a cause that means a lot to you and offer your time and skills to it. For example, most animal shelters need volunteers to walk dogs or clean up the facilities, and other causes might need your help to fundraise. Be open to whatever they want you to do.
Sometimes, what makes you happy costs very little, but sometimes, you have to spend more to realize your goals. By determining what is important to you, you can enjoy life and take care of your future at the same time.
Let’s Talk
Concerned about your relationship with money? Reach out to us to schedule a time to discuss your questions and concerns. Why wait to ensure you’re on the right path towards a healthy retirement?
