Money is a complicated thing.  It takes on many forms and is representative of different ideals.  For some, the number of zeroes in a bank account is a testament to their success and hard work.  To others, their savings and investments are a means to an end; a way to escape the captivity of being a “wage slave” in order to pursue their true passions.  To even more, a negative balance and mounting debt presents itself as an insurmountable obstacle to achieving a sustainable life.

Despite the vast differences in what money can symbolize and represent, I think our relationship to money can evolve into one of two forms.  The first is a healthy relationship in which a person focuses on taking the time to craft a sturdy foundation of sound financial habits, and continuously works to build upon this groundwork by making smart and well-thought-out choices.  This path will eventually lead this type of individual to not need to worry about their financial standing, knowing that the processes and habits are in place for their financial life to essentially be on autopilot.

The second type of relationship with money is a chaotic relationship resulting in constant obsession and internal grief.  How will I afford that next car payment?  What new toy can I buy with this tax refund?  What’s another $1,000 in credit card debt?  I surmise that these are some of the questions and thoughts that manifest themselves in this second type of relationship.

It was imprinted on me from an early age that the most efficient way to achieve success and internal peace was to start with a strong foundation of good habits.  If you do the “easy” things the right way the first time around, you can build on that and not find yourself in a scramble.  Complete your homework early and thoroughly, and you will not find yourself needing to pull an all-nighter to complete assignments for three different classes that you neglected in order to do something more fun.  Pick up after yourself as soon as you make a mess and you will not need to spend an entire weekend reorganizing your life.  Do not go into debt for a luxury item that you will spend years repaying, with interest.  Instead, save up for that purchase by prudently planning and budgeting.

Our relationship with money is no different than our relationship with work, with our friends, or with ourselves.  On a daily basis we are bombarded with seemingly simple choices that can escalate into an ever increasingly complicated web of bad habits.  Like anything, it is usually wise to forego immediate gratification and convenience to choose a path with more foresight in mind, and our financial decisions are no different.

If you are a new graduate, or just trying to play catch-up, I would plead that you make the “boring” and “unexciting” financial choices now in order to preserve your sanity later on down the road.  Yes, it is OK to splurge every once in a while and to make mistakes.  But as I previously mentioned, it is a lot easier to do things correctly the first time than to spend an exponential amount of mental energy later to fix critical mistakes that could have been avoided.

The universe of personal financial decisions can seem overwhelming at first, but it is totally manageable if you break it down into a series of small decisions and actions.  Live within your means, carefully budget for large purchases, don’t take on consumer debt to finance a lifestyle you cannot afford.  Invest early and often, take advantage of employer offered retirement accounts, work on building that emergency fund.  If you diligently tackle each of these items when they first present themselves, you will find that you have built that rock-solid foundation on which you can continue to grow your financial success.  Do not bury your head in the sand only to wake up years down the road with a financial house that is out of control.

You can do this. I believe in you.