5 Ways You Can Change Your Relationship with Money

Money makes the world go round, or so they say. But let's face it, money is often the cause of most problems nowadays. The rate of inflation, as well as the lack of jobs or the mismatch of jobs to talent, has caused many people to become dissatisfied with their lives, leading us to think, why aren't we earning as much as we want to? The first step to answering that question is to first analyze one's way of thinking.

That's just one of the five ways You Can change your Relationship with money. Here's how you can improve that relationship and make your perspective on money and spending, change for the better.

1) Identify what kind of relationship you have with money in general

Forbes reported that sometimes, one's emotions are highly influenced by money and the abundance or lack of it. The first step to improving one's relationship with money is to determine whether you have a positive or negative relationship with it. For positive thinkers, you may see "the possibilities instead of limitations," Forbes reported.

While negative thinkers may discriminate against the wealthy and these feelings may prevent one from achieving wealth in the future.

2) Take stock of the way you talk about money

Words are powerful and just as our own thoughts can be harmful to our self-esteem, it may also influence the way we perceive money and the way we see our relationship with money. According to Forbes, statements such as "I work so hard but I can barely make ends meet," "I will never afford to have a vacation," or "This is the most I can earn, I can never get a big break" will negatively affect the way you perceive yourself and your capacity to go up the corporate ladder or develop your own business.

3) Accept that money is important

Fusion Academy and The Well-Heeled Warrior founder Michelle Rose Gilman wrote in the Huffington Post that we need to accept the importance of money in our lives because those who live in denial will "remain with little of it."

4) Pay attention to money

Just as we accept that money is important, it's also important to pay attention to it. Creative Money financial coach Mindy Crary wrote in Forbes that one must pay attention to the money you're making and determine how you want it to work for you. After budgeting for needs, pay attention to where the rest of it goes. An investment should be a consideration.

5) Determine the wants vs needs

One of the biggest problems when it comes to money is how we spend it and it's often divided into two main categories—wants and needs.

To ensure that your money is working for you, keep an amount for needs and necessities, and instead of spending on wants, put your money in investments or something that will earn more money in the future instead.