Mindful Money Management: Strategies for Creating a Healthy Relationship with Your Finances

Mindful Money management is the process of learning to understand and manage your finances in a mindful and balanced way. It means paying attention to your spending, saving, and investment habits.


There's nothing wrong with wanting to create a life of financial security, but the problem arises when we use fear and panic instead of clear-headed judgment. This is why I've developed the 5 steps to create a mindful money relationship with your money.

Step 1: Accept Yourself as an Unfiltered Consumer

When was the last time you bought a new piece of clothing without looking at the label first? That's because you know that a certain brand of clothing is expensive. That's why you tend to look at the price tag before buying anything.

The same principle works for your finances. Your finances are no different than any other item you buy. That means you have to know your costs before you spend your hard-earned money.

It can be hard to accept that you are an unbranded consumer, especially when you start thinking about what other people might be able to buy. But when you know how much your rent and bills are going to cost every month, it can help you see past the numbers.

Once you can accept yourself as a branded consumer, it's time to get serious about your finances. Start by tracking how much money you're putting into savings, retirement, and debt repayment accounts.

Step 2: Track Spending With Your Spending Diary

When I started using a spending diary, I was shocked at how much money I was spending on things that didn't make me feel fulfilled. The real reason why you're reading this post is probably to track spending, right?

Well, you have to start with the end goal in mind before you can begin to make meaningful progress toward it. So the first step is making a plan to increase your savings and reduce your debt. Then you'll need a way to track your spending so that you can see exactly where you're losing money.

Use an online spending diary that tracks purchases from the moment they're made. I recommend checking out Mvelopes because they're free to use and have a robust reporting dashboard.

Step 3: Save, Spend Wisely, and Save Some More

You can always save more money. There's no doubt about it. But saving money is rarely a passive activity. It usually requires planning, dedication, and willpower.

However, saving money isn't about being disciplined, it's about being smart. For example, most financial experts agree that you should have at least six months' worth of living expenses in savings if you plan to maintain your current standard of living.

Savings is a means to an end, but the end shouldn't be your desire for money. Savings should only be there when you're doing it for a specific reason. The most important reason is to prepare for the future. This means setting up a college fund or retirement fund.