Are you always looking for the best ways to beat debt? Do you find financial planning for the future impossible? You may have a toxic relationship with money.
You may not ask yourself ‘what is my relationship with money?’ very often, but the symptoms of bad financial habits are often easy to recognize.
Australians owe nearly $32 billion on credit cards, according to ASIC MoneySmart data. The average person’s debt clocks in at more than $4,000.
Credit cards are just the tip of the iceberg, with personal loans and car finance deals also popular forms of borrowing. If you’re reliant on ‘bad debt’ to get you through each month, you may need to reassess your relationship with money.
— MoneySmartTeam (@MoneySmartTeam) November 14, 2016
Are you quick to change the subject when people bring up money? Feel embarrassed talking about your finances? You may be avoiding the topic because you aren’t in control of your money management.
Alternatively, if you’re only interested in chatting about your finances, this could also signify a toxic relationship with money, as obsessing isn’t healthy either. Talking about money can be difficult, but you have plenty to gain by having the right conversations.
Why do I never have any money? If this sounds like you, but you’re too scared to check your bank balance and analyse spending habits, you have your answer.
Battling a toxic relationship with money is one of the best ways to beat debt and feel better about your finances.
The first step to solving a problem is admitting there is one. Financial planning tools can help you gain a better understanding of your current money situation.
Personal finances are the biggest cause of stress in Australia. Forty percent of consumers in the country experienced some sort of financial hardship in the first three months of 20171.
It’s important that you tell someone if your financial situation is having an effect on your mental health. Financial planners can also help you resolve your toxic relationship with money.
— NAB (@NAB) June 15, 2017
Financial planning for the future can seem daunting, so it may be tempting to bury your head in the sand. However, battling a toxic relationship with money is one of the best ways to beat debt and feel better about your finances.
What you need to know
This information is provided by Invest Blue Limited (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.
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