How Does Money Affect Your Self-worth And Self-esteem?

There is a connection between money and self-esteem, and that connection is more than having the latest gadgets and living in a nice big home. Self-esteem is something we all work on until we get it right. Since each person is a complex individual, there are many ways that can lead to a path of happiness and confidence.  So, if you’re looking to improve your finances and your self-esteem, here are some reasons why money can help you tap into self-worth.

Lack of money can hurt your self-esteem

Poverty and lack of self-worth often go hand in hand, and that’s quite understandable. However, once you reach a healthy level of personal wealth, you’ll be less inclined to feel frustrated and compare yourself to those who own more than you. Comparing is not necessarily a bad thing, but if you do it and feel bad later, then it means that you’re not doing for a good reason. Some people simply have more luck or better resources, but that doesn’t mean that you’re lazy or unmotivated. So focus on your own growth rather than feeling insecure for not having enough.

Rejecting materialism will help you grow

Wanting something new and getting into debt to obtain the newest car is not the same thing. Every person wants something that’s out of their reach, whether it’s the latest phone or an expensive vacation. But it’s important to learn that, just because you want something, that doesn’t mean that you have to have it, especially if you already have a lot of expenses, to begin with. Therefore, focusing on things that truly matter, and rejecting empty materialism will do much more for your sense of self-worth than buying things to impress random people. 

Managing expenses will help build self-discipline

Photo by Windows on Unsplash

Almost every person deals with expenses on a daily, weekly, and monthly basis and there’s nothing to be done about that. However, learning how to wisely manage them will help you practice self-discipline and also save money in the process. So removing all the unnecessary subscriptions and other spendings from your list is a great way to start. If possible, try curbing those spendings that tend to accumulate without much noticing such as eating out and drinking expensive takeaway coffee. Doing these things will help you become more disciplined, which will positively affect your self-esteem.

Feel free to borrow, but be smart

The economy nowadays requires many of us to borrow money in advance. A lot of people happily do it without paying much attention to the consequences. Therefore, if you feel like you absolutely need to borrow, make sure to get informed beforehand. Using personal loans is a great way to manage your finances, even if you have a poor credit score. Don’t refrain from using these methods to bridge financial gaps, but remember to be smart and learn as much as you can prior to borrowing money from banks and other financial institutions.

Base your worth on what truly mattersmoney

Living in the age of constant financial pursuit can convince a person to base their worth on productivity and wealth accumulation. Even though there’s nothing inherently wrong with that, it’s essential to point out that your worth should not stem from your fortune. Your friends, family, hobbies, and experiences make up a huge portion of your being so don’t neglect personal relationships in favor of raising your purchase power. Remember that you are so much more than your possessions and that people should respect you for you who are, and not for things that you own. 

Focus on things that cost next to nothing

There are so many things in life that cost almost nothing. Watching the sunrise with a steaming cup of coffee warming your hands is a more valuable experience than a shopping spree after a bad day. And if you still want to spend, then you should know that it’s been proven that buying experiences is better than buying things. Still, if you’re currently struggling with your finances, then it’s definitely best to wait and save your money instead. 


There is a connection between money and self-confidence, however, it’s up to you to decide which one should dominate your life. If you’re taking loans, then don’t do it on a whim. Also, aim to learn how to budget, so you’ll be able to afford things without dealing with financial difficulties and unnecessary stress. 

About the Author

Lauren Laporte is a Sydney-based content writer with a passion for healthful, mindful and plant-based living. She believes the human body is hardwired to heal on its own so you’re better off learning how to listen to its cues! She’s nuts about all kinds of animals (the weirder the better), nature and food. Her blog is dedicated to teaching people how to follow their gut, live from the heart and understand that, in the end, true well-being is inevitably an inside job.

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