Balancing your relationship with money
Money enables our dreams and validates our success.
So our relationship with money is emotional and derives from our needs, wants and ultimately the fear of missing out (FOMO). “But lack of effective money management skills can put a strain on your pocket and even hamper family relationships,” says Ester Ochse, Product Specialist, FNB Wealth and Investments.
The fundamental principle around effective money management is to understand your finances and acknowledge your responsibilities. “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” says Ochse.
Here are a few money management questions you should consider when discussing finances as a family:
1. How much money do we earn each month?
2. First save or pay our debts?
3. What do we spend our money on? entertainment/groceries/rent/clothing etc
4. Do we have appetite to save or invest once our monthly expenses are covered?
5. Have we considered family emergencies?
6. Is our budget up to date?
7. Do we consider our needs, wants and responsibilities?
8. Are we covered for future retirement and rainy days?