In the same way that having a healthy relationship with the people in your life is good for your well-being, having a healthy relationship with money can improve your quality of life in many ways. When you reevaluate the way you think about money and handle your finances, you open a world of possibilities that will benefit you now and in the long run.
What does it take to develop a healthy relationship with money?
Unlearn negative beliefs and practices.Every person grows up with financial beliefs and practices inherited from their family and background. These are called money scripts. There are four money scripts, according to Brad Klontz, a research associate professor at Kansas State University. One script is money avoidance, which means you tend to ignore financial statements, overspend, and think negatively of those who are financially comfortable. On the other side of the spectrum are money worship and money status. Money worshippers tend to think that money is the only way to attain happiness, while money status seekers put their self-worth in their net worth. Both money scripts lead to overspending and debt.
Money vigilance seems to be the most ideal of the money scripts defined by Klontz. When you are money vigilant, you spend conservatively and tend to have a higher income and higher net worth. However, being too vigilant can keep you from enjoying the benefits of being financially comfortable. The key is to figure out your money script and make a conscious effort to correct your ways.
Monitor your money flow. Are you familiar with how you earn and spend money? Remember that money is not something to be feared, avoided, or worshipped, but simply a resource to be used for your unique needs.
Take what you earn in a month and list down what you spend on bills, transportation, groceries, eating out, shopping, debt payments, emergencies, and so on. Take note of your savings and investments as well. Using an app or a simple spreadsheet, track each peso as every single one adds up.
Eventually, patterns will emerge. What do you spend on the most? Is this a reasonable amount given your earnings and financial goals? Where can you cut down on your expenses? Are you hitting your saving and investment targets? Do you earn more than you spend, do you just break even, or do you find yourself in debt at the end of the month?
As you start to become familiar with your money flow, you can figure out how to cut down on unnecessary expenses, find ways to supplement your income, and make smarter decisions about where you spend and invest your hard-earned money.
Seek professional help. As you continue to develop a healthy relationship with money, you may encounter financial concepts that are difficult to understand. For instance, if you are looking to invest in life insurance, you’ll need an expert to talk to and put your mind at ease. After all, this is a big decision in terms of the amount and the length of commitment.
Head to a reputable bank that is licensed to sell life insurance. Simply put, this partnership between a bank and an insurance company is called bancassurance. With BPI AIA Bancassurance, there are over 900 branches of BPI nationwide that you can visit to explore your options. Serving as your link to the bank and insurance company, the BPI AIA Bancassurance sales executive will expertly answer your questions, guide you through the products they offer, and handle your purchased plan.
Think ahead. A major benefit of developing a healthy relationship with money is being able to carve out the means to insure your future. Plan for your future through BPI AIA’s Life Ready Plus, an affordable insurance plan that protects you and provides your family insurance. Through Life Ready Plus, you can get access to financial planning for as low as PHP 2,100 per month. Giving you faster access to coverage and benefits, it provides coverage for as much as 30 times your yearly payment. What's more, Life Ready Plus helps you live an active, healthy, fit lifestyle with AIA Vitality, a wellness program that offers instant rewards.
Armed with the knowledge and tools to help you develop a healthy relationship with money, you’ll surely improve your relationship with money, become confident that your money works for you as hard as you work for it, and have the motivation to continue your financial wellness journey.
Discover what Life Ready Plus has to offer as you strive to create a healthy relationship with money. Simply head to the nearest BPI branch and discuss your options with a BPI AIA Bancassurance sales executive.