How do you view money? What is your personal relationship with money? Everyone has a relationship with money as it is an integrative component to our lives. Is this relationship negative or positive?
I need every one of my nurse practitioner sisters and brothers to answer these questions right now:
Are you a big spender? A big saver? Or somewhere in between?
Are you running away from wealth because you spend? Or are you afraid of loosing it all and are considered by friends and family as being “cheap?”
Being on either extreme is not healthy nor wise. You must develop a healthy relationship with money.
Being an ultra-saver and never spending money is not healthy.
Being careless with your money and spending everything that comes in is not healthy either.
As with anything in life, you must find BALANCE to live an optimized nurse practitioner life.
The solutions to these extremes are simple:
If you are a big spender, then start putting away a pre-determined amount into your savings or retirement accounts EVERY month at a MINIMUM. Simply increasing your 401k contributions can make a HUGE difference in your long-term financial health. If you are self-employed, then have a pre-determined amount come out of your business checking account every month into your self-employed 401k or IRA. Set up automatic contributions into your savings or retirement accounts so you DON’T have to think about it. Every bank and brokerage firm has automatic withdrawal capabilities.
If you are an ultra-saver and are too cheap, then you need to have a “whatever” amount of money. A “whatever” amount of money is a pre-determined amount of money that you don’t THINK about. This is money that can be spent on whatever you want, such as cloths, shoes, food, coffee, etc… What is an amount of money that doesn’t really matter to the grand scheme of your long-term financial health? Personally, I could care less about an $8-10 lunch. It is “whatever” money. Also, you shouldn’t stress about living life either. Do you have $100,000 in savings but stress out about a $5,000 vacation of a lifetime? That is ridiculous, unhealthy, and not wise. You only live once after all…
Determine your relationship with money. If you are either too much of a saver or too much of a spender, then go to the dark side of the opposing relationship and meet in between around 60-70% saver and 30-40% spender. I save a large amount of my income every month, but I also have no problem taking my family out to a $150 dinner or staying at a 4-5 star hotel from time to time. Finding that balance is CRITICAL to your long term financial and MENTAL wellbeing! So, what is your relationship with money?