#FinanceFriday: How to balance your relationship with money
Family discussions around money is important and will help you determine how your finances have been managed and maintained in any household.
The common notion is that money makes the world go around, and for many, this stands true.
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Ester Ochse, a Product Specialist, at a well established bank firm said money was viewed as a tool that enables our dreams of a better life.
She said it helped validate our success and amplifies how successful we really are.
“Our relationship with money is an emotional one, and it’s derived by our needs, wants and ultimately the fear of missing out.”
Lack of effective money management skills can put a strain on your pockets and even hamper family relationships.
“Ultimately, we should live within our means and ensure that our money is managed in accordance with current financial situation.”
She said the fundamental principle around effective money management is to understand your finances and acknowledge what your responsibilities are.
“We need to trust ourselves enough to save more and spend less. This doesn’t mean that we should suppress our desires, but rather focus on things that are important like a retirement, education or buying a house.”
Relationships are solely based on trust and transparency, and by having a view of your household expenses and spending, you can ascertain how you use money on a monthly basis.
“Family discussions around money is important and will help you determine how your finances have been managed and maintained in any household. Have a truthful conversation with your family as this will help determine were unnecessary spending takes place,” said Ochse.
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She advised households to consider the following money management questions when discussing finances as a family:
– How much money do we earn each month?
– First save or pay our debts?
– What do we spend our money on? Entertainment/groceries/rent/clothing etc
– Do we have appetite to save or invest once our monthly expenses are covered?
– Have we considered family emergencies?
– Is our budget up to date?
– Do we consider our needs, wants and responsibilities?
– Are we covered for future retirement and rainy days?
These questions can help in defining your financial goals.
“Sticking to your money goals is important as this will help you steer clear of financial burdens. This should be practiced from a young age,” concluded Ochse.
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