Do you ever think you’d like to be better with your money? Money habits are hard to change. But, the more you know about yourself, the better equipped you are to change your situation. When you start thinking of money differently, you change your relationship with it. Once you know your own money habits, you can modify them. And once you understand and appreciate your own worth, you can place value in yourself. Healthy money habits begin within.

Know Your Relationship

First things first, you have to change your relationship with money. If you can begin to think of money as neutral, you eliminate a lot of the feeling associated with money. Most people think negatively of their consumer debt, but neutrally of their student loans or home mortgage. Why is that? Debt is debt, but the feelings we associate towards each are different. One is acceptable, and the other we view as a weakness in consumerism. Money isn’t evil, or the source of future happiness. It’s neutral! It’s just simple math, a constant exchange of slips of paper. So many people struggle with their emotions attached to money. The feelings you attach to your spending will determine what your results with money look like in your life.

Know Your Habits

Learn what you choose to do now with your money. Track your spending habits for a month using either an app or a notepad. Where do you like to spend money? Is it on food, whether that’s eating out or eating in with higher priced foods? Do you value entertainment- and do you spend more freely with certain people than others? Is your money being spent on a vehicle or other high-status possessions? Once you know what you tend to spend money on, you can create a plan to help you change and achieve your goals. If you know that you often spend money carelessly when you socialize with certain friends, you can limit that experience or set boundaries. Recognizing your behavior is the first step to changing how you manage your money.

Know Your Skills

If you’re living outside of your means, you have two simple options: spend less or make more. It’s as simple as that! To spend less, cut out unnecessary items and learn to budget. You may find that you enjoy simplifying your life. To make more, there is an old saying that goes: “There’s a great place to go if you are broke- TO WORK!” You can get creative and find a side job, or utilize the skills you have to create a passive income. You might also consider furthering your education in your current field so that you qualify for better paying jobs.

Knowing yourself is the key to success. Once you recognize how you regard money, you will understand why you spend it like you do and all your habits can slowly change. Know yourself, know your skills, and bet on yourself to be better! You can do this!

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