One of the things to consider with a new year is your relationship with money. We all have a relationship with money, and it's a good idea to pinpoint how you feel about money, and how you interact with money. Understanding your relationship with money can be a big help as you work to figure out how to create a spending plan for the coming year.
Are You In Control Of Your Money?
Ask yourself whether or not you are actually in control of your money. It seems obvious that money is an inanimate object and can't control you, but if you consider your situation again, it's possible to see how your money could be in charge of you.
The easiest way to figure out whether your money is control of you is to look at what you have accomplished at the end of each month. Are you living paycheck to paycheck? Do you frequently have to pull out the credit card to make ends meet? If so, your money is probably in control of you. Rather than directing you financial resources, you are trying to keep up with your spending.
A new year is a good time to create a plan to take back control of your money. Think about how you are using your money to your advantage. Are you using your money as a means to an end? Think of your money as a tool, and you will be more likely to be in control. Look at your spending priorities, and consider what you might be spending money on that you don't actually need — or perhaps even want.
If you find yourself unhappy at the end of the month, wondering where all the money went, there is a good chance that your money is controlling you. Take back control by prioritizing your spending, and then dropping the unimportant items off your list.
How Do You Feel About Wealth?
Another consideration is how you feel about wealth. Think about how you feel about making money, and what you would do about wealth. There are a number of people who are frightened of making more money, due in large part to the possibility of lifestyle inflation, as well as concerns about what they would do with that extra money.
But your feelings about wealth aren't just about how you feel about making more money. Sometimes it has to do with your definition of wealth itself. For some people, “wealth” is having enough for their needs, and some of their wants, and being able to be financial free — while still having plenty of time to spend with their loved ones. Wealth isn't always just about making more money.
Think about how you define wealth, and then make a plan to live so that your values are in line with your spending. Really think about how you feel about money, and wealth, and what's next in your life. Working out your relationship with money can help you make better decisions in the long term and in the short term, and help you achieve the lifestyle you want.