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GOBankingRates aims to empower women to take control of their finances. According to the latest statistics, women hold $ 72 billion in personal wealth – but fewer women than men consider themselves “good” or “excellent”. Women invest less and are more in debt, and overall women still earn less than men. Our Financially Savvy Female column examines the causes of these injustices and offers solutions to change them. We believe that financial equality begins with financial literacy. That’s why we provide tools and tips for women to take control of their money and help them live richer lives.
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In today’s column we chat with you Lindsay Bryan-Podvin, LMSW, financial therapist and author of The Financial Anxiety Solution, on how to determine if you have a healthy emotional relationship with money – and what to do when you don’t.
What are some signs that a person has a healthy emotional relationship with money?
A person who has a healthy relationship with money understands the ins and outs of their personal finances and understands that mistakes happen. They like to talk about money and ask questions when they don’t understand something financially.
What are some signs that a person is not having a healthy emotional relationship with money?
You could avoid looking for money not to negotiate pay increases, over-spend, or spend recklessly.
If someone does not have a healthy relationship with money, what steps can you take to improve it?
1) Identify your current relationship with money. If you are unsure, I recommend that you write down your thoughts and feelings as you interact with money or financial tasks. Remember: watching your paycheck come in on your bank account, handing over your credit card when you get your car repaired, or listening to a story about the stock market on the radio. Knowing where you are now can help you find where you want to be.
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2) Identify your version of a healthy relationship with money. Most of my clients say they want a relationship with money that feels simple, that gives them confidence and peace of mind. These words may or may not resonate with you! You decide what a healthy relationship with money looks like.
3) List your unhealthy financial thoughts or practices. For example, “I’m not paying my credit card bills” or “I’ll wait until April 14th to file taxes.”
4) Decide what sound financial thoughts or practices to adopt. I’m not here to tell you what to do or not to do with your money. You are the expert on how you want your relationship with money to be.
Here are a few questions to get you started: Does checking your bank account weekly feel like a healthy financial habit? How about starting your day with a mantra like “I am confident enough to understand money”?
5) Create a roadmap to implement changes. Reverse engineering from your current location to your desired destination. Create small, manageable steps to get there and practice in a cadence that works for you, be it daily, weekly, or monthly.
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This article originally appeared on GOBankingRates.com: Do you have a healthy emotional relationship with money?