How making friends with money will reap benefits for your savings

What’s your relationship with money? Maybe your personal finances are like a distant cousin you barely think about – or an unsettling stranger you avoid. Or perhaps money feels like your enemy, frustrating you and rarely doing what you want.

In fact, 31 per cent of respondents to a 2020 NerdWallet survey said they feel anxious when thinking about the current state of their personal finances.

That sounds exhausting. What if you thought of money as your friend instead? A positive relationship can help you feel more confident and empowered to make the most of your money.

Addie McHale, a Denver-based certified financial planner, gives the following tips for befriending your money.

“These are things you can start to do today,” she says. “You don’t even have to get out a calculator.”

Give your time and attention

If you’ve ever grown apart from someone, you know that friendship takes work. Making quality time for each other – and not scrolling through your social media feeds while you’re supposed to be listening – is key.

So spend meaningful time with your money. Schedule check-ins to review your recent spending. Hop into your retirement account to monitor its progress. Peek at the debts you’re repaying.

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Ms McHale says “miracles happen” when her clients start paying attention to their money and taking action. They gain momentum, she says.

Spend time tracking your spending and you may spot opportunities to cut expenses. You make those trims and now you’ve saved money. Next, you’re looking into where to put that extra cash. Now, look here, you’re investing, contributing to a savings goal or putting more towards paying off debt – all because you took the time to scan your spending.

Take an interest

You know that friend you know everything about – their birthday, beverage of choice, feelings about their mum? You know that stuff because you took an interest and learned it.

Same goes for your friendship with money. In addition to giving time and attention to your finances, make an effort to learn more. Seek out articles and books about money, discuss it with friends and family or consider getting professional guidance.

Ms McHale recommends trying a money podcast. “There are lots of ways to learn and incorporate it into your life very easily,” she says. “Anyone can listen to a podcast while they’re walking outside.”

Show appreciation

Of course, you want more money. Ms McHale points out that society often pushes the mindset that “you never have enough and should always buy more, more, more”. But, she says: “We have to get off that train and start to appreciate what we have.”

Try reflecting on what your money has allowed you to do. Or appreciate yourself for trying to understand your finances better. Or follow Ms McHale’s advice: “Get in the habit of saying, ‘What am I grateful for today?’”

This gratitude won’t make you rich, but it will help you develop a more positive relationship with money. It’s like associating your friend with their warmth and thoughtfulness rather than their perpetual tardiness.

Start paying attention to the language we're using around money, because those are connected to our thoughts

Don’t talk ill about money

Good friends don’t say mean things to each other. Similarly, saying more positive words about money can help improve the way you feel about it.

“Start paying attention to the language we’re using around money because those are connected to our thoughts,” Ms McHale says.

Listen for phrases such as “I’m terrible with money” or “I don’t care about money”. Those kinds of words can act like crutches. Why try to improve your finances if you’re bad with money? Why save for retirement if you don’t care?

If you’re not comfortable with personal finance, consider reframing to say “I don’t understand this, but I’m going to take small steps to learn more”, Ms McHale says.

Also aim for more empowering language. Rather than claiming you can’t afford something, Ms McHale suggests saying that you’re choosing not to spend your money.

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Drop the judgement

Any friend who has confided in you likely expected a judgement-free zone. Give yourself that same compassion and try to let go of money shame.

Ms McHale suspects that many people aren’t friends with their money partly because “it’s an emotional topic that they want to avoid”. But she adds: “If we come from a more neutral place, maybe we can drop some of our money baggage.”

Aim to be more analytical and less emotional about money by scheduling times to check on your finances when you’re feeling calm and level-headed.

Prepare to forgive

“If you’ve ever had a falling out with a friend, you know how important grace is and letting things go,” Ms McHale says. Money friendships take hits, too. Finances can be hard to understand, so you’ll likely make mistakes.

Maybe you miss bill payments or overdraft or rack up debt. Beating yourself up is unproductive and can lead to resentment and avoidance.

“You must forgive yourself for past or current mishaps and mistakes,” Ms McHale says. “It doesn’t mean condoning, but accepting it and learning from it and moving on.”

UAE currency: the story behind the money in your pockets

Key facilities

Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills

Tomb%20Raider%20I%E2%80%93III%20Remastered

%3Cp%3EDeveloper%3A%20Aspyr%0D%3Cbr%3EPublisher%3A%20Aspyr%0D%3Cbr%3EConsole%3A%20Nintendo%20Switch%2C%20PlayStation%204%26amp%3B5%2C%20PC%20and%20Xbox%20series%20X%2FS%0D%3Cbr%3ERating%3A%203%2F5%3C%2Fp%3E%0A

Results

6.30pm: The Madjani Stakes (PA) Group 3 Dh175,000 (Dirt) 1,900m

Winner: Aatebat Al Khalediah, Fernando Jara (jockey), Ali Rashid Al Raihe (trainer).

7.05pm: Maiden (TB) Dh165,000 (D) 1,400m

Winner: Down On Da Bayou, Royston Ffrench, Salem bin Ghadayer.

7.40pm: Maiden (TB) Dh165,000 (D) 1,600m

Winner: Dubai Avenue, Fernando Jara, Ali Rashid Al Raihe.

8.15pm: Handicap (TB) Dh190,000 (D) 1,200m

Winner: My Catch, Pat Dobbs, Doug Watson.

8.50pm: Dubai Creek Mile (TB) Listed Dh265,000 (D) 1,600m

Winner: Secret Ambition, Tadhg O’Shea, Satish Seemar.

9.25pm: Handicap (TB) Dh190,000 (D) 1,600m

Winner: Golden Goal, Pat Dobbs, Doug Watson.

The%20specs

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KILLING OF QASSEM SULEIMANI

National Editorial: Suleimani has been killed, now we must de-escalate

Mina Al Oraibi: Air strike casts a long shadow over the decade ahead

Jack Moore: Why the assassination is such a monumental gamble

Matthew Levitt: Iran retains its ability to launch terror attacks

Hussein Ibish: Trump's order on solid constitutional ground

Simon Waldman: Cautious Israel keeping a low profile

Rashmee Roshan Lall: Sound of silence in South Asia

Fanar Haddad: The Iranian response will be gradual

Richard Olson: Why Afghanistan will be very wary

Sanchez's club career

2005-2006: Cobreloa

2006-2011 Udinese

2006-2007 Colo-Colo (on loan)

2007-2008 River Plate (on loan)

2011-2014 Barcelona

2014–Present Arsenal

On Women's Day

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The National Editorial: Is there much to celebrate on International Women's Day 2021?

Justin Thomas: Challenge the notion that 'men are from Mars, women are from Venus'

Sole survivors

Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.

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Test series fixtures

(All matches start at 2pm UAE)

1st Test Lord's, London from Thursday to Monday

2nd Test Nottingham from July 14-18

3rd Test The Oval, London from July 27-31

4th Test Manchester from August 4-8

Company profile

Name: The Concept

Founders: Yadhushan Mahendran, Maria Sobh and Muhammad Rijal

Based: Abu Dhabi

Founded: 2017

Number of employees: 7

Sector: Aviation and space industry

Funding: $250,000

Future plans: Looking to raise $1 million investment to boost expansion and develop new products

Towering concerns

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Honeymoonish

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Retirement funds heavily invested in equities at a risky time

Pension funds in growing economies in Asia, Latin America and the Middle East have a sharply higher percentage of assets parked in stocks, just at a time when trade tensions threaten to derail markets.

Retirement money managers in 14 geographies now allocate 40 per cent of their assets to equities, an 8 percentage-point climb over the past five years, according to a Mercer survey released last week that canvassed government, corporate and mandatory pension funds with almost $5 trillion in assets under management. That compares with about 25 per cent for pension funds in Europe.

The escalating trade spat between the US and China has heightened fears that stocks are ripe for a downturn. With tensions mounting and outcomes driven more by politics than economics, the S&P 500 Index will be on course for a “full-scale bear market” without Federal Reserve interest-rate cuts, Citigroup’s global macro strategy team said earlier this week.

The increased allocation to equities by growth-market pension funds has come at the expense of fixed-income investments, which declined 11 percentage points over the five years, according to the survey.

Hong Kong funds have the highest exposure to equities at 66 per cent, although that’s been relatively stable over the period. Japan’s equity allocation jumped 13 percentage points while South Korea’s increased 8 percentage points.

The money managers are also directing a higher portion of their funds to assets outside of their home countries. On average, foreign stocks now account for 49 per cent of respondents’ equity investments, 4 percentage points higher than five years ago, while foreign fixed-income exposure climbed 7 percentage points to 23 per cent. Funds in Japan, South Korea, Malaysia and Taiwan are among those seeking greater diversification in stocks and fixed income.

• Bloomberg

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On Women's Day

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Justin Thomas: Challenge the notion that 'men are from Mars, women are from Venus'

Defence review at a glance

• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”

• Prioritise a shift towards working with AI and autonomous systems

• Invest in the resilience of military space systems.

• Number of active reserves should be increased by 20%

• More F-35 fighter jets required in the next decade

• New “hybrid Navy” with AUKUS submarines and autonomous vessels

Company%20Profile

%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A

The%20Specs

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Tearful appearance

Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.

Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.

She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.

A spokesman said her upset demeanour was due to a personal matter.

Diriyah%20project%20at%20a%20glance

%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%0D%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%0D%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%0D%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%0D%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%0D%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%0D%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%0D%3C%2Fp%3E%0A

EMIRATES'S%20REVISED%20A350%20DEPLOYMENT%20SCHEDULE

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While you're here

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Benefits of first-time home buyers' scheme

Priority access to new homes from participating developers
Discounts on sales price of off-plan units
Flexible payment plans from developers
Mortgages with better interest rates, faster approval times and reduced fees
DLD registration fee can be paid through banks or credit cards at zero interest rates

No Shame

Lily Allen

(Parlophone)

FULL%20FIGHT%20CARD

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