The connection between the money in our pocket and the thoughts in our head are surprisingly more connected than you would think. A majority of purchase decisions are based on mental and emotional reasoning that makes us spend money we don’t have on things we don’t really need.
The way we use our money may seem rational in the moment, but we often reflect with a heavy sense of buyer’s remorse wondering if we really needed that new phone or watch. To help you understand how money and mental health are directly correlated, we want to dive into the intertwined connection between how we spend and how we feel.
Getting Realistic about Your Spending
Before we look at the money management habits to avoid and embrace, we first need to all come at this problem from the same place. To fix a problem like overspending and poor money management, we all need to hold ourselves accountable for reckless spending which can be traced back to individual decisions that were made without real thought.
If we want to become better with money management for a clearer mind, we need to get realistic about what we are spending. Going out to buy groceries and keeping yourself from checking out the new clothing store is a small decision that rewires your entire mind. It may be hard to resist old habits of spending and impulsive buying, but you need to train yourself to stay on target with your spending so future issues don’t compound and become even more problematic.
The Negative Impacts of Money Stress
Having to worry about the money in your bank account any time you go out shopping should not have to be an issue. When you are responsible with your money and have a meaningful connection to it, you will be less likely to go spending it without thought on useless things. When you stress about money, you stress about life.
Getting your mind clear of financial stress is a hard process, but it can be done. Changing the way you think about money requires you to seriously think about your habits so you can address them without justifying unhealthy spending. If you just lie to yourself as to how you spend your money you will just spiral into even more lies that hurt your mental state in the long run.
Financial stress is not something that isolates itself as it can pour over into every other aspect of your life with ease. Not having money means not being able to live your life and experience things with friends. When you become an outcast because of poor financial decisions, your overall mental state becomes damaged and you could eventually need serious help to get you back on the right track.
Poor Money Management Habits
Spending More Than You Earn
One of if not the most common money spending traps that people fall into is simply spending money that they don’t have. With the abundance of credit cards and predatory deals, it can be so easy to justify things that we think we will be able to afford in the future.
Generations of people are currently dealing with debt because they spent money that they just didn’t have on things that they didn’t need. If you are going to buy something you can’t afford right now like a house or car, you need to make sure you are doing so in a responsible manner with the correct funds lined up for the future.
Lying to Yourself
In most cases, we are our own worst enemies when it comes to spending. We justify the purchasing of things we don’t need because our mind tries to find any way it can to get a quick hit of satisfaction. Being fixated on temporary gratification can be a slippery slope that leads to dangerous overspending.
If you have to justify buying something in your head, you probably don’t need it. The process to getting better with managing money all starts when you are honest with yourself and stop lying about what you need.
Relying on Credit
The credit card is easily one of the most tempting creations that has ever been invented. It allows you the power to simultaneously change and ruin your life if you are not careful. Millions of people are swamped with credit card debt because they don’t know when to put it down and stop buying.
Credit cards give you the allusion that you have an infinite well of money that you can use without remorse and just pay back when you’re older. However, the day to pay back your credit cards always creeps closer and has dire consequences when you are unable to pay back those fees unless you seek the proper help and guidance to pay off that debt.
Positive Money Management Habits to Embrace
Being Conscious of Your Spending habits
When you want to start living a life free of financial stress, starting inside your mind is always a good place to begin. Being a conscious spender will prevent you from buying things you don’t need just because you feel like you can.
A conscious spender reflects and thinks about what value a purchase will add to their life. If you are buying something that doesn’t add value to who you are as a person, then why are you even buying it?
Being an Educated Spender
Never before have we had access to the amount of sheer resources and knowledge than we do right now. If you want to learn how to better use money and how to reduce your stress surrounding money, there are numerous resources out there for free that can help guide your decision making.
Equipped with knowledge, you become the informed spender that businesses are afraid of because you don’t go buying senseless products. You can learn about money and how it affects our internal thought processes across multiple platforms. Additionally, using your tools to research the things to buy will help you find alternatives that will be just as good if not better.
Welcome to Motivational’s. This is Elliot Grant, fitness fanatic, and your go to advisor and blog post writer, putting your fitness first.