Self-esteem and money have a very close relationship. In contrast to how many believe money can bring you happiness, the relationship between self-esteem and money goes beyond a simple cause-and-effect equation.
The way you lead your financial life can end up affecting your personal life in numerous ways. Naturally, self-esteem is one of the first areas affected when there is an imbalance.
Do you want to understand why self-esteem and money are so tightly knit? In this article, we will go over the effect of money on our self-esteem and what we can do to fix it.
How are my self-esteem and money related?
First, it is important to understand that self-esteem isn’t always about body and aesthetics. While this isn’t particularly true most of the time, it’s important to learn that many other factors can affect one’s self-esteem.
Our self-esteem is related to the act of desiring or liking ourselves. It’s about practicing and building respect, self-care, and learning to know one’s self. And obviously, because it’s a process, ups and downs will happen. Due to this being the case, self-esteem can manifest both positively and negatively.
We are a social species and we live under the influence of different external stimuli: culture, work relationships, and even those we have amongst ourselves. All of this ends up manifesting itself in our bodies and our mind.
But how does money get involved with all of this?
Money is yet another external stimulus that manifests itself a lot in our daily lives. Self-esteem and money are directly related because of this.
Almost everyone with financial problems won’t have enough self-esteem to think about financial planning and organization. In fact, with a loss of self-esteem, we become more and more:
– unwilling to reverse the situation of accumulated debts;
– afraid of not being able to maintain the same standard of living;
– irritable and less willing to perform self-care.
In situations like this, self-esteem and money end up entering an eternal loop, and it’s a particularly tough one to get out of.
What happens when self-esteem and money are in a healthy relationship?
When your finances are in order, everything else flows better. It’s clear that money can’t buy happiness, but it’s hard not to admit that being financially secure isn’t a dream for most of us.
Financial worries are usually minor and manageable. You’re in control of your personal finances and can have a broad view of your situation. This, in turn, may bring additional tranquility to other spheres of your life.
At the very least, it may give you peace of mind to resolve other issues in your life.
Whether it’s the plans for future retirement, having food on the table, or being able to spend a little on yourself every so often, every goal can be valid.
All of this ends up contributing to positive self-esteem. For well-being based on our own image, we must strive towards and complete our aspirations and dreams.
One of the keys to balancing self-esteem and money is thinking about personal and financial planning.
#Tip 1. Seek support to build this balance
As we said at the beginning of this article, self-esteem is a building process, just like your financial planning. Establishing a balance between self-esteem and money may be a bit tougher than you thought at first.
Therefore, you should seek strength and support from those around you that have previously shown love and care for you, even in the toughest times.
If this doesn’t work, you can always look for a therapist. Taking care of self-esteem qualifies under mental health.
#Tip 2. Establish goals that give meaning to your financial planning
Part of good financial planning includes setting realistic goals. It is very important that you understand the purpose of your money and why you’re collecting it. You must also be able to tell the difference between dreams and goals, as well as learn to prioritize the more important ones.
Things like these are important if you’re looking to learn more about saving money. Taking time to think about your dreams can be a huge boost to your self-esteem. After all, thinking about our dreams is an act of care and self-love.
You can also get your friends and family together to make these plans. Having someone to share our desires with can be a huge help.
#Tip 3. Little by little adjust your accounts
Looking at debts can be a major letdown, but you shouldn’t let this distract you from the goals you’ve already set.
Gather all your bills in one spot: those that are up to date and those that are overdue. Put everything on the table and thoroughly identify the expenses, compare them with your budget and see how you dealt with your expenses over time. Identify the hits and misses you’ve made along the way.
After this, you should set a cost cap for fixed bills (rent and electricity, and water bills) and variable bills (meals away from home and travel). Adding all of this to your financial planning will make a huge change over time.
#Tip 4. Become more familiar with yourself
This tip may be somewhat self-explanatory, but it’s incredibly valuable. One of the important steps to building a balance between self-esteem and money is knowing yourself. Identify your likes and dislikes. What is good for you and what is bad for you? How do you see money, and if any of your beliefs are limiting your progress?
You should also take note of what matters in your life and what your core strengths are. Self-knowledge is a daily practice and you can start with the most mundane activities if you’re at a loss.
#Tip 5. Invest more in your financial education
That’s right, financial education! There’s no need to be afraid, because talking about money and learning how to manage it can be for everyone.
Seek to learn more about the financial market, personal finance, and financial autonomy. Knowing these can help you spend more consciously, avoiding impulsive consumption.
And who knows, maybe you start investing a little bit of your money and gradually increase your assets! Different from what many people say, investing is not as difficult as most sell it to be, although it does require a fair amount of knowledge for entry.