How Do You Define Your Relationship With Money?

Financial security is vital for everyone's well-being. However, there is always one unanswered question: Just how much money is enough? The pandemic taught us that wealth, no matter how much we may accumulate, is meaningless when faced with health uncertainties. Infact, a 2018 study found that any additional income does not result in happiness beyond a certain point.

Defining Relationship With Money

People are constantly driven to work harder, earn more, and build without taking a breather in today's world. This may even cause anxiety or fear. During times of financial abundance, this may result in greed or power. People also fear that too much wealth may harm their children’s values.

There is a popular saying that money is greed, and one should never mix money and relationship. Additionally, in money vs relationship: a relationship should always take precedence. A survey says that relationships are better when spouses are honest about money.

Here are certain questions that will define an individual’s relations with money:

Do money and happiness go together?

While it's true that money can't buy happiness, it can influence it in certain ways. For example, if people are not careful about spending it, they will only experience stress and financial inconvenience, especially in times of emergency. In the same way, focusing too much on earning more won't make the person content in the present moment, either. They will always feel that money is a necessity for their happiness.

Is it a positive or negative factor in life?

Relationships with money can either be positive or negative. When it is a positive relationship, a person understands its importance and does not spend it unwisely. Instead, they find a balance between spending and saving. Conversely, if the relationship is negative, one may be impulsive and willing to spend on things which do not matter. Here, money will become a necessary evil to own.

Can an individual make financial decisions without fear?

It may be possible that, despite having wealth, one may fear making financial decisions in their life. It could be due to poor financial decisions or limitations from the past. The fear will also make a person lose out on any favourable opportunities.

In what way does money influence self-worth?

Money can greatly influence a person's sense of self-worth. While it is largely beneficial in building self-worth from the idea of attaining financial freedom, oftentimes, it can become a burden as well. Sometimes we fall prey to comparing ourselves and our financial standing with others. It not only hampers self-confidence, but also potentially misleads one into taking financial decisions which aren’t a right fit, but do so anyway, based on others’ actions. It is therefore important to recognise when money is getting in the way of your self-worth and re-evaluate whether it is worth it at that moment.

In a nutshell

Each individual has a different relationship with money. In any case, no matter what, one should not let money dictate their life. Being in control of one’s finances indeed brings happiness and satisfaction from financial freedom. It is important however, to see both positive and negative factors of one’s relationship with money.