I get it. In today’s fast-paced environment, we’ve all had a moment or two like that—and a little self-deprecating humour can help to lighten the load. But dwelling on and repeating these negative beliefs about our financial abilities only perpetuates a cycle of financial mismanagement. Our thoughts become reality, and therefore, it’s important that when experiencing moments of financial uncertainty, we don’t let it consume us.
The good news is that we all have the potential to improve our financial circumstances. It takes time of course, but by adopting a growth mindset and making conscious changes, we can reframe our outlook and transform “I’m bad with money” into “I am learning to manage my finances with confidence and purpose.”
You can find more mantras for reframing your attitude to money here, but for now, let’s explore some empowering steps for taking charge of our financial well-being.
Reflect on Your Financial Past
Our past gives us insights that we can use for the future, and a vital part of understanding and reframing our relationship with money starts with acknowledging past mistakes and recognising the impact that it had. There’s no point dwelling on it too much, but taking the time to reflect and look at any financial missteps as learning opportunities, not character flaws can help us to see what we can do differently moving forward and recognise any triggers.
Identify Your Limiting Beliefs
If you’ve ever told yourself “I’ll never be good with money” or “I don’t deserve financial success” then I’m afraid to say you have limiting beliefs. Unravelling these beliefs is crucial to reshaping financial narratives. Limiting beliefs can hold us back, and they often run deep seated in past experiences or the way in which we are brought up. Challenging these beliefs is vital, and can be done by checking in with yourself and acknowledging your triumphs and accomplishments—for example, not impulse buying when you set yourself a budget or reaching a financial goal that you set yourself. Celebrating your wins is a key part of changing the story you tell yourself, and preventing these limiting beliefs from reoccurring.
Invest In Your Education
Education doesn’t have to mean student debt and a fancy degree. Empowerment comes from knowledge, and there are numerous ways you can obtain this. From free articles, podcasts and YouTube videos, to paying to attend webinars, workshops and courses. Taking the time to educate yourself will never be wasted time or money because it will help you understand your finances in greater detail, empowering you to budget, save, invest, mitigate risk and manage debt for yourself. Helping to take away your financial reliance from others, and empowering you to act in your own best interest.
Cultivate Healthy Habits
When it comes to making changes, small consistent habits have a more significant impact over the long run. Not only is it more manageable, but it becomes a normal part of your routine as you do, making it more likely that you’ll stick to anything new you create. Start small, but meaningful, such as saving a percentage of your income every month, or tracking your spending and analysing the results each month. The more time passes in doing so, the more you’ll develop discipline and financial literacy, helping you to make a positive and sustainable shift in your money management skills.
Set Smart Goals… Literally!
Establish specific, measurable, achievable, relevant, and time-bound (SMART) financial objectives—because concrete goals provide direction and motivation, and when it comes to becoming better with money, both are needed! Whether it’s paying off debt, building an emergency fund, or saving for a significant purchase, having a roadmap will help you stay on track and feel comfortably in control of your finances. Your budget doesn’t have to be restrictive or complicated, (it’s not a burden!), it should be something that helps you align your finances to facilitate your long and short-term goals.
And last but not least…
Be Patient!
Progress takes time, and it can be easy to get frustrated because we aren’t exactly where we want to be. But financial growth is rarely instantaneous (unless you get lucky on the lotto!). Be patient with yourself and celebrate the progress you make, no matter how small it may seem. Remember that every step forward is a step away from the mindset of “being bad with money.”