What is a Money Mindset?

A money mindset is essentially the beliefs, attitudes, and thoughts you hold about money, whether intentional or not. The money mindset influences financial decisions, behaviours, and outcomes, and it typically takes root during early childhood, shaped by parental influences and experiences.

Because a money mindset takes root so early and gets built upon further as we age and progress in life, a money mindset can intertwine with your self-value, self-worth, and self-confidence, influencing how you perceive success, failure, and worth in relation to financial achievements.

Our attitudes toward money play a significant role in our lives, shaping how we interact with it, use it and perceive and manage debt. One such example of this is how some people see debt as a burden and something to avoid, whereas others view it as a useful tool and leverage it to reach their goals. Another example is the way in which some people enjoy the present moment, whereas others prefer to prioritise saving and investing for the future. Everybody’s experience is unique and differs based on experience and exposure to different financial theories and education. Because of this, money mindsets are diverse and come with varying levels of risk tolerance.

Can a Money Mindset Be Changed?

Absolutely! There are several ways you can transform your money mindset, but the first step is to be patient with yourself. Changing your mindset can take time because it’s often deeply rooted. But it isn’t impossible. Not by any stretch, so here are my tips for helping you shift from scarcity to success and fostering a healthier relationship with money.

Be Aware

It sounds overly simple, but the first step of ANY change is to recognise where you’re at. Reflect inward and take a moment to dive into your beliefs about money. Think about how your upbringing, culture, and past experiences may have influenced these beliefs and identify any negative thoughts you may be holding onto.

Look and Learn

Spend time delving into personal finance through books, podcasts, and reaching out to financial experts for advice. The more you understand how money works, the more confident you’ll become in discussing and managing your finances. Knowledge is power!

Question Yourself

When you look at your financial beliefs, ask yourself if they are based on previous experiences or just an assumption. Is it a fact or a feeling? Questioning yourself enables you to notice when you’re operating from a past belief, which is a vital step in reshifting your focus to your new beliefs. You can then level this up by correcting yourself, and replacing any negative beliefs with positive mantras and affirmations to help reframe your thinking. For example; “I am capable of managing my finances effectively.”

Create a Support System

Defining your financial goals and creating a plan to achieve them is one step. But every goal in life is easier when we’re not doing it alone. Surrounding yourself with people who have a positive money mindset can be a great way to build a support system and community. It enables you to have a safe space to discuss money and goals, and the positivity and new perspectives can be invigorating - helping to positively influence your own to see what a useful tool it can be.

Carve out Time for Gratitude

Cultivating an attitude of gratitude for what you have, rather than constantly focusing on what you don’t have can shift your perspective and reduce feelings of financial scarcity. It makes you stop and take note of where you are, forcing you into the present rather than begrudging previous spending habits, or worrying about future oneness.

Check Your Progress

Once you’ve set your goal be sure to check in on your progress, either by regularly reviewing your spending activity or by checking your account balance. Some people say ignorance is bliss, but when it comes to your financial well-being, knowledge is power!

But above all, remember, you don’t have to do this alone! Our mindset can affect numerous aspects of our life, from how we approach money, to what we think we’re capable of achieving for ourselves. So, whether you want to work with a mindset coach, a financial advisor or a therapist, know that there are plenty of people out there who can provide expert guidance. You’re worth the investment!