The Power of Kindness in Our Finances:

Why Financial Wellbeing Starts with Your Mindset, Not Just Your Money

When we think about money, kindness isn’t usually the first word that comes to mind. Many people assume financial wellbeing is numbers, budgets – simply a matter of earning more or making the right investments. But what if improving your financial wellbeing had less to do with figures and more to do with mindset?

One of the most overlooked yet powerful aspects of financial wellbeing is kindness—both towards ourselves and others. As we discussed with Dennis Harhalakis, a certified money coach, on our Financial Wellbeing Podcast, understanding our emotional relationship with money can transform how we manage it. Whether you’re looking to improve your own financial habits or seeking a healthier perspective on wealth, these insights can help you move towards a more fulfilling financial future.

Understanding Your Relationship with Money

We all have a personal relationship with money, shaped by our upbringing, life experiences, and subconscious beliefs. Some people see money as a source of security, while others view it as a means of achieving success or freedom. Without self-awareness, these deeply ingrained beliefs can influence financial behaviours in ways we don’t even realize.

For example:

• Do you feel anxious when spending money, even on necessities?
• Do you struggle to save, even when you know it’s important?
• Do you find yourself comparing your financial situation to others, feeling envious or inadequate?

These emotions stem from learned financial behaviours. The key to financial wellbeing is to recognize these patterns and work towards a healthier mindset—one that balances responsibility with joy and purpose.

The Power of Self-Compassion in Financial Wellbeing

We often judge ourselves harshly when it comes to money. Whether it’s regretting past financial decisions, comparing ourselves to others, or feeling guilty about spending, our internal dialogue can be unkind. But beating yourself up over money decisions doesn’t help—self-compassion does.

• Accept that managing money is challenging—it’s not something we’re naturally wired to do.
• Recognize that mistakes are part of learning—no one gets everything right the first time.
• Give yourself credit for small wins—whether it’s setting a budget, paying off a bill, or having an open conversation about finances.

Being kind to yourself is the first step toward financial confidence. When we approach our finances with self-compassion, we make decisions based on long-term wellbeing rather than short-term fear.

Why Kindness Leads to Financial Fulfilment

A surprising factor in financial wellbeing is kindness—both to ourselves and to others.

One of the most powerful (and underrated) financial habits is generosity. Research consistently shows that acts of generosity improve our sense of wellbeing. Whether it’s giving money to charity, buying a thoughtful gift, or simply sharing knowledge, helping others has been linked to increased happiness and lower stress. This is because giving strengthens relationships, creates meaning, and reinforces a sense of abundance.

Kindness also plays a role in how we interact with money in relationships. Financial stress can cause tension between partners, friends, and family. But approaching money with openness and generosity—rather than secrecy or competition—helps build stronger, more supportive connections.

🗣 Dennis Harhalakis on kindness and money: “Money is most powerful when it’s used to strengthen relationships, not just increase wealth.”

Finding Joy in Others’ Success

We live in a world where comparison culture—especially on social media—makes it easy to feel inadequate about our financial position. Have you heard of compersion? If you’re familiar with schadenfreude (taking pleasure in others’ misfortune), compersion is its opposite: taking joy in someone else’s success.

Why is this relevant to money? Well, in our society, we are conditioned to compete. Seeing a friend land a high-paying job, buy a dream home, or go on a luxury holiday can trigger envy instead of joy. But if we shift our mindset towards compersion, we allow ourselves to celebrate others’ achievements rather than view them as a reflection of our own shortcomings.

Practicing compersion helps combat the comparison trap that often leads to financial dissatisfaction. Instead of feeling left behind, we can focus on our own values and financial journey, understanding that success looks different for everyone.

Practical Steps to Improve Your Financial Wellbeing

Ready to take control of your financial wellbeing? Here are some simple yet powerful steps to build a healthier relationship with money:

• Develop Self-Awareness: Pay attention to how you feel about money. Keep a money journal or reflect on past financial decisions without judgment.
• Practice Self-Compassion: Stop beating yourself up over money mistakes. Focus on learning and moving forward.
• Use Money for Joy and Purpose: Spend intentionally on experiences, relationships, and things that bring genuine happiness.
• Talk About Money Openly: Whether with a partner, friend, or financial planner, having honest conversations reduces stress and increases confidence.
• Give Generously: Even small acts of financial generosity can boost wellbeing and create stronger relationships.
• Celebrate Others’ Success: Shift your mindset from comparison to compersion to cultivate a positive outlook on money.

Final Thoughts

Financial wellbeing is about more than just numbers—it’s about mindset, self-awareness, and how we use money to enhance our lives and relationships. By practicing kindness, self-compassion, and intentional financial habits, we can reduce stress, increase happiness, and create a sense of abundance that benefits both ourselves and those around us.

As Dennis Harhalakis reminded us in our podcast conversation, kindness—towards ourselves and others—is a powerful tool for financial wellbeing.

If you’d like to explore these ideas further, come and chat with our financial planners at Ovation.