How to Transform Your Money Mindset
When you think about money, what are the first thoughts that come to mind?
Have you ever thought to yourself, “Money disappears fast,” “Money is the root of evil,” or even “Money is not that important”? If those thoughts have ever crossed your mind, you might have limiting beliefs around money.
Your money mindset is the beliefs (oftentimes subconscious) you have about money that determine your relationship with it. Your money mindset can be influenced by your family and surroundings growing up, or even more recent daily interactions.
Your relationship with money falls somewhere on the spectrum between scarcity mindset and abundant mindset.
● Scarcity Mindset. If you find yourself feeling stressed about money, believe you’re not good with money, or believe money is for “rich people,” you might have a scarcity mindset. A scarcity mindset causes you to subconsciously believe that money is limited or scarce.
● Abundant Mindset. On the other side of the spectrum, you might have an abundant mindset when it comes to money. If you are generally generous with money and confident that you will always be able to make and receive money, you probably have an abundant money mindset.
When you realize how much your beliefs around money influence your decisions, you realize that your money mindset can be one of the most important factors in how you handle your money and your relationship with money.
If you have a scarcity mindset, you might attribute your own self-worth to net worth. You might feel so anxious about your finances that you avoid looking at your bank or credit card statements, which can result in uncontrolled spending. A scarcity mindset might result in unnecessarily living paycheck-to-paycheck.
But what if you could shift your beliefs, feel in control of your finances, and stop living paycheck-to-paycheck?
Follow these tips to begin transforming your money mindset:
Look at your existing beliefs. Sometimes our beliefs around money follow us our entire lives. Starting with this awareness can help you see how different things influence your behavior with money.
● How do you feel about money right now?
● How was money handled at home growing up?
● What was your parents’ relationship with money?
● What beliefs/opinions do you have about wealthy people?
Reframe any negative beliefs to be more positive/abundant. How can you reform your subconscious beliefs and shift from a scarcity to abundance mindset with money?
● Building wealth is possible.
● I am in control of my financial life.
Create financial stability for yourself. If you are overwhelmed with debt or living paycheck-to-paycheck, the most important thing is to create a plan to become financially stable. Having a financial plan allows you to meet those goals that are important to you, and to feel comfortable that you can handle the inevitable financial bumps life throws our way.
● Look at your current income and spending. Do you have money left over at the end of the month to fund your goals or are you always coming up short?
● Decide where you may be able to cut costs and contribute extra to any debt you may have so that you can start paying yourself instead of the banks! Carrying debt robs you of your future.
● Get a handle on your monthly expenses. Know what it takes to cover the necessities in your life and start sinking funds for known non-monthly expenses. Make sure that your income covers both of these types of expenses
● Create an emergency fund with a minimum of $1,000 and a goal of building it to 3 months of your necessary expenses. This will protect you in the event of illness, job loss, or any of those annoying but part of life emergencies like a flat tire, unexpected car or home repair, or pet illness.
● Cut emotional spending. Make a plan to prevent yourself from spending when you’re stressed, sad or bored. Don’t carry credit cards with you. Have a spending plan and pay with cash or a debit card. Only use credit cards when your purchase has been pre-funded.
Stay in your lane. Let go of any resentment because others have a lot of money. Focus on your journey rather than everyone else’s. Learn how to find happiness in the present with what you have and improve on your own situation.
Adopt a gratitude mindset. Study after study shows that grateful people are more likely to take care of themselves and make healthier choices.
● Celebrate every time money comes into your life!
● Do a gratitude practice at least once per day.
● Acknowledge the things in your life you have, even the basis like food, shelter, and transportation.
How are your money beliefs sabotaging you?
Remember that money mindset has nothing to do with the amount of money you earn or have. It’s about ingrained beliefs that you may not even be aware of.
You alone are in control of your financial life, and your financial situation isn’t determined by how much money you have, but how you manage the money you have.
Reach out if you are in need of help with any of these issues. With financial coaching you have an experienced guide and cheerleader by your side who can help you maneuver through these financial waters and provide you with a plan.
You deserve financial stability and happiness!