Many people worry about their financial situation and struggle to make ends meet, and you are not alone. This financial anxiety has become particularly prevalent in the wake of widespread job loss and business closures over the past year, perpetuating a scarcity mindset about money. I, too, have experienced this financial strain.
I did not readily understand money management. It was through my personal journey of grappling with debt and money-related stress that I developed a deeper understanding. I’ve had fears about spending money, or ended up spending it instantly upon receipt.
The stress and emotional feelings linked to money are primarily a result of one’s “money mindset,” a belief system I held, feeling like I would never have enough money or that I could ever succeed financially.
Understanding Money Mindset
Your “money mindset” refers to your specific beliefs and attitudes about money. It impacts your decisions about saving, spending, and managing your money. Your financial behavior, good or bad, is anchored in this mindset. It fuels your thoughts, perspectives, and attitudes towards your finances.
Those with a healthy money mindset believe:
– They have the freedom to spend but also the power to deny a purchase.
– Generosity towards others who are struggling is rewarding.
– Achieving financial goals is possible.
– Comparisons to others are unnecessary.
Recognizing your money mindset is key to developing better habits that will help accomplish your financial goals.
Factors Influencing Money Mindset
Very few people grew up with an attitude of abundance towards money. In my experience, common admonitions like, “money doesn’t grow on trees,” and “do you think we are rich?” shaped my fundamental beliefs about money.
Your money mindset is shaped by your early experiences with money, the teachings of your family, and the habits modeled by those around you.
The environment we currently live in also plays a significant role. The people you associate with, your community, the books you read, and the podcasts you listen to can greatly influence your mindset about money. You are more influenced by your surroundings than you may realize.
4 Steps to Revise Your Money Mindset:
1. Forgive Your Past Money Mistakes
We all make financial mistakes and often feel terrible about them. Your initial step to a better money attitude should be to shift focus from shame and towards habits that foster a healthier relationship with money.
2. Define Your Financial Goals
After forgiving yourself, the next step towards a positive “money mindset” is setting and pursuing financial goals. Identify what is most important to you to achieve financially and write it down.
3. Develop a Generous Spirit
Start by contributing to a cause you believe in, or treating your loved ones or even a stranger to a meal. Generosity fosters a mindset of abundance, affirming that there is more than enough to share.
4. Learn More About Money
The more knowledgeable you are about financial matters, the healthier your relationship with money will be. Take advantage of the various resources – people, books, blogs, articles – available to increase your financial literacy.
In conclusion, transforming your money mindset requires conscious effort, but with practice, you will see dramatic changes in your financial situation. Understanding the origin of your money mindset empowers you to transform it. You are not doomed to a scarcity mindset. Change is possible with you taking the first step. Start with one small goal, and celebrate every little success along the way. Recognizing that you can control your financial future is empowering and emphasizes that you have the keys to change your monetary reality.
