How to Finally Feel Good About Your Money
Since becoming a financial advisor in 2007, I've had the privilege of working with hundreds of individuals and couples, and gaining a deep understanding of their experiences and feelings about money. Over the years, I've noticed that feeling good about your money doesn’t have much to do with how much you earn or own.
Wealthy people are often just as anxious about their finances as those with more modest means, that’s for sure. But what do the people who are “good” with their money have in common?
Here are the most important things in common I've noticed:
1. Save for the Future
One of the most consistent traits among those at peace with their money is a habit of saving. It doesn't matter if they're high income or not; they are putting money aside on a regular basis.
This usually starts with a consistent amount in a 401K or other retirement account. Once that is covered, an automated transfer to a high-yield savings account and a taxable brokerage account will further increase wealth over time.
The act of saving consistently builds a powerful sense of security and control. It's about showing yourself that you are actively building and planning for your future, rather than living purely for today.
2. Take Care of the Serious Stuff
Leaving crucial financial and legal matters undone can be a silent source of anxiety, festering in the back of your mind. People who feel truly good about their money have faced these responsibilities head-on. This includes securing adequate health insurance for unexpected medical needs, having life insurance to protect loved ones, and tackling estate planning with a will or trust. Knowing that these essential protections are in place provides immense peace of mind and reduces the "what if" stress that can plague even well-off individuals.
3. Get On The Same Page About Money With Your Partner
Money is often cited as a leading cause of conflict in relationships, and for good reason. If you're hiding spending from your partner, if money is a constant source of arguments, or if you simply avoid talking about it altogether, it's incredibly difficult to feel good about your financial situation – let alone your life together.
The financially happy couples I've worked with have dedicated time and effort to fostering open and honest communication about money. They set joint goals, understand each other's financial values, and work as a team. This doesn't mean they never disagree, but they have established healthy ways to discuss, decide, and move forward together.
4. Pay Your Credit Cards Off Every Month
This might sound simple, but it's a huge differentiator. The cycle of carrying a credit card balance, paying high interest and fees, and feeling perpetually behind can be a tremendous source of stress. I’ve been there, and I see people with all sorts of incomes making the same mistake.
Individuals who feel good about their money typically pay off their credit card balances in full each month. This practice avoids accumulating costly interest, keeps debt from growing out of control, and ensures that credit cards are a tool for convenience, not a temptation to shop until you drop. It's a fundamental habit that keeps cash flow healthy and reduces financial anxiety.
5. Know What It Costs to Run Your Life
You don't need a tight, line-by-line budget to feel good about your money, but you do need awareness. The individuals who are truly on track have at least a rough estimate of how much is coming in and how much they spend on a monthly basis. This understanding allows them to make informed decisions, identify potential areas for adjustment, and avoid the constant surprise of where their money went. It's about having a sense of control and predictability, which is far more comforting than living in the dark.
Ideally, your cash flow will include room for savings and progress toward your goals. There are plenty of apps and spreadsheet templates to help you. (I personally like Monarch Money if you want to try one).
6. Give Money Away
It might seem counterintuitive, but those who feel good about their money often share it. Whether it's donating to causes they believe in, or helping out friends and family, they regularly give money away. This act of generosity isn't just about altruism; it fosters a sense of abundance and gratitude. It reinforces the idea that you have enough to share, shifting your mindset from scarcity to sufficiency. The positive emotional return from giving can be profoundly impactful on your overall financial well-being.
Your charitable instincts may change over time. In my experience, parents with young kids in the thick of childcare expenses may not have the mental or financial bandwidth to think about their charitable goals.
You can be strategic about how your donate for increased tax efficiency. It may make sense to create your own Donor-Advised Fund (DAF) to bunch multiple years of contributions into a single year. But the most important part is getting started.
7. Build Your Own System or Team
The most financially confident people often have a system or a team in place to support them. This could be a personal finance app, a spreadsheet you’ve been updating for years, or relationships with a financial advisor and accountant. Crucially, they take ownership by developing their own system, rather than relying on a parent or relative to manage things for them.. They understand that their time is valuable and that specialized expertise can save them stress, time, and potentially, money. They leverage professionals to navigate complex decisions, manage investments, and ensure they stay on track, freeing themselves to focus on what they do best and enjoy most.
From Anxiety to Confidence: It is in Your Hands
Feeling good about your money isn't a destination you reach once your net worth hits a certain number. As you can see from the points above, it's a gradual process built on intentional habits. It's about trading anxiety for awareness, chaos for control, and secrecy for open communication.
You don't have to tackle all of these at once. In fact, the most lasting change comes from small, consistent steps.
Your challenge is this: Pick just one. Which of these seven habits resonates with you the most right now? Is it automating a transfer to savings? Having that overdue money talk with your partner? Or finally setting up a system to track your cash flow?
Choose one, commit to it for a month, and see how you feel. You might be surprised at how one small act of financial self-care can begin to transform your entire relationship with money. Need help? Schedule an Introductions Call with one of our advisors.
The information presented in this article is the opinion of Cultivating Wealth and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. Past performance is no guarantee of future performance.
