Financial well-being is a key aspect of overall personal wellness. Building and achieving financial wellness requires self-reflection and consistent work. The first step is to understand your money story. The second step encompasses the consistent work that comes in the form of healthy money habits.

Dear Spirited Earthling,

Money. It’s what makes the world go around. It’s what we work for. It sparks and fuels anxieties and inadequacies. It can be shrouded in secrecy and shame. With it having such a major influence in life, it makes more sense to develop a positive relationship with money – one that empowers instead of controls. Financial well-being is a key aspect of overall personal wellness that often gets overlooked. Having a healthy and positive relationship with money does not necessarily mean being wealthy, but rather understanding and managing your finances in a way that allows you to meet your needs and goals while reducing worries and shortages.

Disclaimer: This is Not Financial Advice. These are my personal ideas, opinions, and theories. It is recommended to do your own research.

Understanding Financial Wellness

Financial wellness refers to the state of being financially healthy. You know your income sources and your expenses, have an emergency fund, have savings and investment goals and plans, and can afford life’s pleasures without incurring debt. Financial security and freedom start with understanding financial wellness and then taking steps toward your financial goals.

Positive Relationship with Money vs. Negative Relationship with Money

If you have a positive relationship with money, you feel comfortable talking about money with trusted people (family members, friends, financial advisor) and believe money is a tool to enrich your life and achieve your dreams. This means you actively learn about managing your money well and improving your financial literacy in general. You feel in control of your finances and make informed decisions and mindful spending based on your goals and values. You feel financially secure because you have an emergency fund that will meet your needs, savings to support your goals, and investments to support your future. This empowerment and security help you have a positive attitude towards money and you feel grateful and appreciative for what you have and avoid comparisons. You are able to enjoy life and spend responsibly without feeling guilty.

If you have a negative relationship with money, you constantly worry about money and feel overwhelmed by bills or debt. You are unaware of your money habits and don't track your spending or have a clear understanding of your financial situation. There is this duality of feeling ashamed of your financial situation and guilty about spending money (even on necessities), and at the same time, you make impulsive financial decisions based on emotions rather than planning. You feel financially insecure and believe you never have enough money and fear future financial instability. Because of this, you avoid talking about money with others and constantly compare yourself to others. And yet, you avoid addressing your finances (missing out on potential opportunities for growth) and can restrict any enjoyment money can bring.

Just like any other relationship, cultivating a healthy and positive relationship with money requires understanding, communication, and effort.

understanding and building financial wellness through budgeting and saving

How to Build Financial Wellness

Financial wellness means having a positive relationship with money, so you need to look at your actions to see how you treat it. The Richest Man in Babylon is one of the oldest financial books that has money lessons taught by people today. Take having a genuine relationship with your money seriously, and treat it as you would any other relationship. Building and achieving financial wellness requires self-reflection and consistent work. The first step is to understand your money story. The second step encompasses the consistent work that comes in the form of healthy money habits.

Understand Your Money Story

We all have a unique "money story" shaped by childhood experiences, societal messages, cultural influences, and personal values. Your story has informed your money mindset. Take some time to reflect on your story:

What are your beliefs about money?
What emotions does money evoke?
What phrases did you hear about money growing up and how have they influenced you and your perception of money? (e.g., money doesn’t grow on trees)
Identify your underlying narratives to help you break free from limiting patterns. Acknowledging your money story and money mindset lets you know your starting point.

Think about your financial goals. If you don’t have any, set some. It could be to be debt-free, have a 6-month emergency fund, afford a dream vacation. Your goals are the compass on your financial journey, pointing your way with purpose.

Create Healthy Money Habits

Just as with self-development, building positive financial habits is crucial. Knowing where your money is coming from, going, and how it is working for you can help you better understand your current habits. Healthy money habits include budgeting, knowing your expenses, saving and investing. As with any habit, consistency is key to achieving long-term financial wellness.

With many of the upcoming habits, you likely have a negative, stressed, or avoidant response to them because of your money story. The truth is: you are the author of your story and you can change your outlook and actions by changing the narrative of this story you call life.

Therefore, I ask that you keep an open mind when reading the healthy money habits. You can tackle one of them at a time until you are ready for more change and expanding your comfort zone. Again, financial wellness is an important aspect of your overall wellbeing.

Have a Budget

Tracking your income and expenses helps you understand your money journey now. It tells you where your money is going, shows you what your future can look like, and suggests where your money can start working for you.

Because money is an anxiety-inducing topic, here is a situation to think about:

You have little to no savings at your grand age. You can either start now and in 5 years have savings at your new grand age.
Or, you can stop yourself because you’re overwhelmed or embarrassed or don’t want to deal with your current financial situation and be in the same position in 5 years' time.

Take a few breaths and do this one thing that your current-self may not enjoy so that your future-self thanks you greatly.

Track Your Spending

Part of having a budget is tracking your spending because awareness is the first step to change. Take control by tracking your income and expenses for one month. Seeing where your money goes can be revealing, and it empowers you to make informed choices.

Informed choices mean you will more likely practice mindful spending because you begin to better distinguish between needs and wants. Look at your values and start aligning your spending with them (value-based spending). Before making purchases, consider how this purchase will affect your financial goals.

You are allowed to spend your money. You work hard for it. Spending mindfully shows your money appreciation. You value it and what it can do to make you happier and your life better.

Pay Off Debt

Being more aware of your spending can not only help prevent you from getting into debt (buying things you don’t need to impress people you don’t like), but it can also focus additional financial resources to paying off debt.

Being debt-free is often not rewarded in the backward financial framework many of us live in. But it can greatly improve your relationship with money. Paying off debt is a way of showing your money accountability. You are sending it where it needs to go in order to create a better life for yourself.

Start Saving

There are different savings plans that are non-negotiable:

Emergency fund – this fund covers unexpected expenses, providing a safety net for peace of mind.
Retirement fund – even though retirement may seem far off, the earlier you start saving for your retirement the more you’ll have when do.
Goal fund – this fund covers the expenses of your goals (going on holiday, a new car, a deposit on a house).

Saving is a way of showing your money respect. You value it and are protecting it.

Start Investing

Investing is a way to grow your wealth over time. Whether you have a little or a lot to invest, invest. Educate yourself on different investment options and choose strategies that align with your risk tolerance and financial goals. Leave the gatekeeping of investing to the fools and learn in ways made accessible to you. Books like Girls That Invest: Your Guide to Financial Independence through Shares and Stocks explain terms and actions in understandable ways.

As someone who comes from an African country and now lives in a European country, I realised that interest on savings account is not a universal thing. Where we once could leave money in our savings funds to accumulate interest, we now have to look at other means of growing wealth because accounts here don’t have interest.

Investing is a way of showing your money nurturing. You value it and want to help it bloom and grow.

Be Grateful

It is okay to want to have more money and have your money work for you so you become more and more financially free. On this journey to financial freedom, it is absolutely vital to appreciate what you have at any given time. Choose to focus on what you have and not what you lack. Choose to focus on your abundance and not perceived scarcity. You will never find financial peace without gratitude.

Be Generous

Donating money shares your wealth, and what you put out comes back to you. This is the law of attraction or karma. Look for charities and organisations that are transparent in their dealings that align with your interests and experiences.

If you have experience with hospice, you may want to donate so more families can find support in end-of-life care. Your affinity may lie with animals so supporting animal shelters and rescues could be more interesting to you. If you have a family member who is struggling financially, buy a bag or two of basic groceries. There are big and small ways you can be generous with loved ones or strangers.

Be Yourself

Get out of the comparison trap and live your life for yourself. You are the driver, you are the writer, you are the one who will watch this movie back at the end. Ignore the trends and find your style. Ignore the hypes and find your loves. Choose stories over stuff. Choose adventures over things.

Forgive Yourself

What is done is done and what can be done starts today. Learn from your past and do better going forward. Letting go of past mistakes or beating yourself up for not doing things sooner or better will have you spiraling. Thank your past-self for the experiences and promise your future-self that your current-self will do better – and do better.

Learn Always

It is a fallacy to believe you know enough and can stop learning. There is always more knowledge to gain, more mentors to learn from, and more to know about yourself. Just as in self-development, financial education is a continuous process. Stay informed about financial trends, investment opportunities, and personal finance strategies. Being adaptable to changes in the economic world ensures that you can navigate it with resilience and confidence.

Talk about money with trusted and respected people in your life. There is often much to learn from those you know (whether it’s learning what to do or what not to do). Get a financial advisor who can help you on your journey. Don’t let money be a taboo topic in your home – start financial literacy early.

As you are learning and living it is always a good idea to regularly review your financial plan (budget, spending, saving, investing). This can help you stay on track and make adjustments when needed. And remember to celebrate your progress, big and small. See your progress as motivation to keep going.

Remember, money is a tool, not a master. By nurturing a mindful and positive relationship with it, you can create a life filled with security, opportunity, and healthy well-being. So, ditch the shame and start building a financial future that empowers and excites you. Share your tips and experiences in the comments below if you think they can help others.

Spirited Earthling is more than just a blog – it's a gathering place for kindred spirits drawn by an interest in self-discovery, the appeal of self-care, and a desire for a deeper connection to the world. Written and created for curious minds and spiritual hearts seeking meaning in everyday life, this blog aims to help you curate your wholesome personal growth with free weekly ideas and affordable resources for sale.

As you navigate your personal growth journey using the words and ideas shared here, consider sharing this blog with someone looking for inspiration or motivation on their own journey. We are all spirited earthlings, and can lift each other together with mindful, connected living.

Thank you for being part of this community.

Best wishes, warmest regards

Jordan

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building financial wellness: a positive relationship with money

Ways to Build Financial Wellness: A Positive Relationship with Money