Improving your financial well-being usually involves a few basic categories, such as cutting costs, creating a budget and saving money.
We often forget to start with our mindset about money.
If you have ever read or listened to any advice on money, it usually involves diving into your own personal finances and creating a plan. You must first understand how you view money and what has been holding you back.
What are the chances of your success if you have a negative attitude toward money or think that results are impossible?
If you want to make better decisions and improve your financial situation, then it all starts with your money mentality.
Table of Contents
What is Money Mindset?
How is your money mindset formed?
How to change your mindset about money
What is Money Mindset?
Money mindset is your unique set of beliefs and attitudes about money. These ideologies may be influenced by your surroundings, family, friends and other influences as you go through life. Your views will also influence your decisions when it comes to managing money.
Healthy money mindsets share some common characteristics.
They view money as an instrument to achieve things
They don’t worry about other people or compare themselves with them
Some people believe that anyone can learn to manage their money.
A plan helps them achieve their financial goals
You can see the direction this is heading.
Your mindset is crucial to your financial success. It determines how much effort you will put in, your attitude towards others with money and whether you are confident about getting out of debt or investing.
What is a broken mindset?
Many people are broke in today’s society.
If you have a broke mind, you live in fear of money. You will believe that you won’t ever be able to achieve your financial goals. It affects your ability to manage your finances and whether you will make any efforts to improve your situation.
For my first years of college and afterwards, I had a mindset that was utterly broke. I lived paycheck to paycheck, but did nothing except feel bad about myself.
I thought that I would never earn more than $40,000, I’d be in debt forever, and I wouldn’t ever become wealthy.
Nothing changed until I corrected my mindset.
Positive changes in my finances began to happen the moment I understood my money mindset.
How is your money mindset formed?
Even though I mentioned earlier how your money mind is formed, I wanted to cover this more.
Your daily interactions and environment will influence the way you perceive money.
What, if anything, did your parents teach about money? Growing up, how was money managed in your family? Money was it treated positively or negatively in your household?
Money can be taboo in families, or even touchy. But the lack of communication can perpetuate the cycle of poor finances through the generations.
You can’t always blame your parents for their lack of financial knowledge. Their experiences as children have also affected them.
Your friends’ views about money may also change as you age. Their experiences may be very different from yours, and they can influence you positively or negatively.
Your money mindset will be greatly influenced by your neighbors, your school, your town, and if you are married, your spouse.
How to change your mindset about money
It can be difficult to change the way that you view money. You may need to take some time to adjust. Your beliefs are shaped by years of different influences, depending on your age.
It won’t be possible to change your mindset overnight. But you can shape it in a positive direction.
If you’ve found that you have a negative money mindset and need to change it there are some steps you can do to shift your perception.
- Take the step to ensure financial stability
You can start by committing to financial stability. Before you start investing or saving, you must be prepared to follow through with your plan.
This doesn’t just have to apply to financial stability. You may want to be wealthy or achieve financial independence as soon as possible.
You can boost your mindset by committing and being excited about your process. When you choose to be dedicated you subconsciously motivate yourself and lift yourself up.
- Personal finance books
Some people in your life are not money experts or can’t pass on the right mindset. There are many great books on personal finance that will guide you.
You’ll learn how to better manage your money by reading this book, but also change the way you think about money.
What I learned by reading personal finance books
It’s easy to learn how to manage money.
Money and finances don’t control me
I can manage everything without any help
Learn how to manage your money and you will find that life is less stressful.
- Practice Money Affirmations
Do you visualize how your finances can be improved? Do you visualize what you would like to achieve with your money and how you could do it? How often do your positive plans for the future come to you?
Money affirmations help you to visualize your results and stay focused on your goals. You will begin to push negativity away when you tell yourself positive things and all you can achieve.
You can’t just say that things will happen to your money. You’ll have to work hard and make a continuous effort. As you start to shape your money mindset, you can begin to change the way you think by creating affirmations.
- Do Not Focus on What Others Have
Fear of Missing Out (FOMO) is a mental and financial killer.
Have you ever felt jealous about what other people have? You may have felt that you were behind your peers when you saw the wealth they had.
Most of us can relate to this feeling.
You may spend money that you don’t need to “keep up” by worrying about other people.
Ironically, the people to whom you compare yourself may also have the same feelings about other people or not be in the best financial shape. All for show!
You can begin to relax once you understand that many people are just putting on a show. It was only after I read about this in personal finance books that I began to see it more clearly.
- Gratitude and gratitude are important.
It’s important to be grateful for your progress and what you have, rather than worrying about what others may have.
You will be more grateful for your achievements, your beliefs and your possessions when you begin to feel gratitude. Instead of focusing only on the negative aspects of your finances, it’s about seeing the good.
Your money mindset can be too focused on the negatives.
When you learn to be grateful, you will become more satisfied with what you already have. You won’t feel the need to spend money to keep up with other people or to get instant gratification by buying stuff.
Keep track of your small victories and write them down.
- Create Big Money Goals
You’ll mix short-term and long-term goals with some that may seem impossible. But dream big!
It is important to set goals you can achieve, even if they are not difficult. However, it is also important to think about your ultimate goal.
Do you have a dream of early retirement? You may have certain milestones in your wealth accumulation that you would like to achieve. Your goal is to become a multi-millionaire.
Focusing on larger money goals can help you change your money mindset. These big goals will help you focus on what is important and build a plan to work towards.
- Believe In Yourself
It can be difficult to change the way you view money if you don’t believe in yourself.
People often let their past life experiences dictate what happens to them.
Do any of these sounds familiar to you at all?
“I’ll be poor and broke forever because I was raised poor.”
“I’ll never be able retire because I do not know how to invest.”
I’m drowning and will never be free of debt.
You alone can change your life story, no matter where you come from, what you’ve experienced or who you grew up with. There is no doubt about it, some people are more able to improve their personal finances and mentality than others. It’s simply life.
By changing your attitude towards money and believing in yourself, it will be easier for you to form better habits. You are willing to work harder, even when it seems impossible.
Over time, your confidence and money mindset will improve.
