A money mindset is an overriding attitude that you have about your finances. It drives how you make key financial decisions every day. And it can have a big impact on your ability to achieve your goals. If you change your mindset about money, you tend to make better choices about how to overcome challenges. In this case, the power of positive thinking really does matter.
Have you ever thought to yourself…
I’m never going to be able to stop living paycheck to paycheck. I can’t imagine affording to have kids! I’m never going to have enough money. I’m never going to get out of debt. I’m never going to be able to retire. I’ll never be able to buy a home!
These are examples of a negative money mindset.
How to build a positive money mindset
You can counter these thoughts with positive affirmations…
I am a very capable person that can tackle all money obstacles and I am in control of my expenses!
Making choices to build wealth today can allow me to build the life I desire, and that includes raising a family!
I believe in my ability to earn more money.
I am committed to eliminating all debts that don’t serve me from my life.
Every dollar saved puts me closer to financial freedom.
My finances don’t scare me because I have a plan!
Changing the narrative in your mind about money can give you back control and completely change your relationship with your finances.
A word from the wise…
REMEMBER 💡 Even people with a positive money mindset may have debt or a trouble getting by BUT they are taking action to improve their financial situations and hey had to start by shifting their mindset.
How can you make the shift from a negative Money Mindset to a positive one?
1. Start with the WHY you want to improve your finances. Financial stability/prosperity sounds great, but WHY are these things people desire? Sit with that thought for a moment and see what surfaces in your mind. Could it be that you feel financial stability/prosperity will allow you to do more in life? What are those things you wish to do? Are they truly YOUR goals, or just what you see others doing? Perhaps it’s stress reduction that you desire and that better control of your finances will allow for that.
It’s often said that some of our stress is caused by inaction on the things we can control. We can become so frozen by our negative thoughts that we don’t take the small actions that can make a difference and as a result, reduce some of the stress we’re feeling. It all comes from the WHY. Our ‘Why’ is what drives us towards what truly means the most to us. Determine your WHY(s), write them down, note any actions that you can take (no action is too small!), and you’re well on your way to shifting your mindset.
2. Say NO to shame. In many areas of our lives, we are our own worst critics. This applies to finances as well. It’s important to separate yourself from past financial decisions that did not work out well. These do not define you and you made the best decision with the information you had at the time. Forgive yourself and take what you learned forward.
3. It's never too late to learn about saving and investing. The age of the internet brought unprecedented access to information! Find an author (or youtube channel) that you relate to and explain things in a way that resonates.
4. Visualize your future self in a state of financial freedom. Sounds corny, I know, but it works. Picturing what the little actions you can take that will please ‘future you’, such as paying down debt or saving for your child's education, can be very powerful in creating a positive money mindset. Just as we can sometimes dwell on the negative, we switch gears to visualize and dwell on the positive too.
5. Build better habits. Sounds pretty obvious, however getting into a consistent habit can be hard. Try focusing on just one thing per week to start. For example, not giving into temptation to purchase something discretionary. Or making a deposit (no matter the size!) into an investment account for yourself.
Lastly, and this one is very important to your Money Mindset: Focus on your own progress and celebrate the wins along the way, however small they may seem - they add up! (In other words, Stop comparing yourself to others - doing so is the sneaky thief of joy!)