Kacey Musgraves Says She's 'Evaluating What Love Means' and 'Making Room for Things That Matter' (Exclusive)

Kacey Musgraves' new album represents her "most grounded" era yet.

To hear the country singer tell it, Deeper Well, out March 15, is a reflection of what "feels right and real to me."

"I know myself better than in previous years, previous albums, and I just feel like I'm right where I need to be," Musgraves, 35, tells PEOPLE in a candid interview. "I definitely think the music reflects that."

Just one listen to the title track by the same name, and it's clear that the Grammy winner, who recently confirmed her breakup from writer Cole Schafer, is leaving all the negative energy behind.

“It’s been a real good time / But you got dark energy, something I can’t unsee / And I’ve got to take care of myself / I found a deeper well,” Musgraves sings on "Deeper Well."

"Ultimately, the song sums up where I'm at in my mid-30s and really evaluating what love means to me, what friendships mean to me, what are the things that I need, what is really serving me and not serving me," she tells PEOPLE. "It's [about] taking stock and making room for the things that actually do really matter."

Musgraves' new music marks professional and personal growth for the star, who says her focus remains on putting her must honest and authentic self forward.

"This life is so short. I think that you have to be a little bit ruthless in removing obstacles for growth," she says. "That could mean adjusting your expectations with family members. That could be putting a pause on a friendship. It could be a breakup or dropping a habit that just doesn't serve you well anymore. It's being awake enough to be tuned in to paying attention to what the flow of nature is trying to tell you about what you need."

Never miss a story — sign up for PEOPLE's free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories.

And while this is the singer-songwriter's fifth studio album, she says she still has nerves anytime she's releasing new music.

"I don't have children, but I can imagine it's like sending your kindergartner off to school for the first time. It's scary, but it's exciting ... you're proud," she shares. "There's also a letting go process to it, where you make the music and then you put it out and it's not quite yours anymore — it's everyone else's. But then, the next wave of inspiration will come along and there's beauty in that too."

As part of her album release, Musgraves released a second candle collaboration with cult loved beauty brand Boy Smells, offering her fans a "more 3D experience." (The album sheet inside the record is even scented!)

"It's just really fun for me to think about taking something from a one song dimension and expanding it into other senses, like scent," she tells PEOPLE of the "Deeper Well" candle, which follows her hotly popular "Slow Burn" launch from 2020. "Songs are tied to memories, and scent is one of the main things that trigger memories for people. I think blending and creating a world where a song can have a life as a scent is so fun."

Musgraves and Boy Smells latest sound-to-scent interpretation, available now exclusively on BoySmells.com and kaceymusgraves.com, combines earthy notes like mushroom, beetroot, oakmoss and with the freshness of eucalyptus, raspberry, and lavender. In April, the $56 candle will launch in retail stores worldwide including Sephora, SpaceNK and Nordstrom.

The back-to-nature, earthy vibes which inspired the candle are also seen in the music video for "Deeper Well," which Musgraves says is very intentional and representative of her own aesthetic.

"It's a video for the witches, the cottage girls, the soft girls and the nature ladies," she says, adding, "I just love a cottage core moment."

For more from Kacey Musgraves, pick up the latest issue of PEOPLE, on newsstands everywhere Friday.