It’s time to change your money mindset. You might not know it, but your money mindset is what determines how much you earn and how happy you are with the amount of money that comes in.
Your mind and your thoughts have a lot to do with your financial success, so it’s important that you learn about yourself and make changes accordingly. If you want to win the money game then you need to work on creating a better money mindset.
Understanding what kind of beliefs influence your thoughts on money is the first step on the road to change.
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how your big money mindset is formed
You might not know it, but your money mindset is formed through a process of thoughts and experiences with money. This means that the way you think about money today is based on the thoughts and experiences you have had with money in the past.
It’s not always easy to identify exactly what formed your money mindset beliefs, but there are certain things that could easily have influenced you. For example:
- Your parents attitude to money and how they talked about money with you
- How you were raised in terms of religion and your beliefs
- The culture that you grew up in can also influence how you think about money
the importance of understanding your money mindset beliefs
Understanding your money mindset beliefs and how they were formed is the first step to changing your thoughts about money for good.
Changing your mindset can help you gain a better understanding of what brings meaning into your life by understanding where the balance is between making money and living well.
If your financial habits aren’t helping you be happy, then change them to something that will give you more happiness in life.
Changing your money mindset questions
What are the different money mindsets?
The two most common are the scarcity mindset and abundance mindsets which I have described below. But there are others who say there are 4 types of money mindset;
- being in debt
- breaking even but no more
- comfortable with what you have
- rich, you have more than enough
What is a scarcity money mindset?
When you have a scarcity mindset you are in the mindset of not enough. There’s not enough money to go round. For your own money it means you are in a perpeptual state of thinking you don’t have enough.
You find bills stressful and you’re constantly trying to save money but it isn’t working. Not fun is it?
How do I get rid of scarcity mindset?
To get rid of your scarcity mindset around money, and life in general, you need to stop thinking you don’t have enough. Focus on what you do have. Be grateful for what you have, not disappointed about what you don’t have.
Being grateful and practising gratitude can be an enourmous help when you are trying to win the battle of money scarcity vs abundance mindset creation.
How do you get an abundance mindset with money?
To create your abundance mindset you need to work on replacing your negative thoughts about money with positive ones.
- Be thankful and grateful for what you have,
- Ignore what others have
- Factor fun into your budget. A little guilt-free spending goes a long way to making you feel more positive about your financial situation.
- Replace ignorance with knowledge. Learn about personal finance so you can do more with the money you have.
- Learn about the psychology of money so you know why you think the way you do. Check out the books below to understand more.
What is a broke mindset?
A broke mindset is pretty much the scarcity mindset. With a broke mindset you have a perpetual fear of being in debt and running out of money.
Both of which become a self fulfilling prophecy because you are so stuck with the fear that you think nothing can be done. So you don’t try to change your financial situation or thought patterns.
How to have a money making mindset?
To create a money making mindset you need to have a money mindset makeover. First to master the abundance mindset and then get rid of that constant feeling of being broke and unable to do anything about it.
You need to work on believing that you CAN make money. That you CAN change your financial future. To do that you need to:
- Learn how to manage your money better
- Live below your means so you have spare cash each month
- Demand and expect more of yourself
how can I change my money mindset?
There are different ways to change your money mindset for better financial success.
The first step is understanding how it was formed, which you can do by asking yourself these questions:
- What attitudes did my parents have towards money?
- Did I grow up in a wealthy or struggling family?
- Were the people around me happy?
The second step is to ask yourself these questions:
- What are my beliefs about money?
- Am I happy with the amount of money that comes in?
The third step is to make some changes. For help, you could start by simply asking your friends how they think about money or learning more about money and finances.
The key here is not to let fear or shame stop you from trying to improve your own money mindset.
The fourth step is finding a new way of thinking about money that will be more helpful and motivating for you.
Using positive money affirmations and money mindset quotes are a great way to focus on the positive aspect of the changes you are trying to make. Affirmations are positive statements that you tell yourself.
They work by helping you change your belief system so perfect for helping you work on creating a more positive money mindset.
What is a money mindset coach?
A money mindset coach is someone who helps others become skilled in managing their money through money mindset exercises and providing important financial education.
With money mindset coaching you have someone who is looking out for you, someone who can be your accountability partner. A money mindset mentor if you like.
What are the best money mindset books to read?
You can be your own money mindset coach by taking advantage of the knowledge and help given in books you can pick up from Amazon or your local library.
These are among the best books on money mindset that can really help you create a healthy money mindset you are after.
7 Money mindset tips for lasting change
1. forgive your previous financial mistakes
It’s important to forgive yourself for any mistakes you might have made in the past. Forgiveness will allow you to let go of those feelings that are holding your financial success back and move forward with a fresh start.
Forgive yourself by releasing regret, guilt or shame about anything money related from your past. Doing so will give you the strength to make changes in your life.
If you’ve developed some bad money habits, then now’s the time to look at how to break them and create better ones.
Your money mindset determines how you see yourself, the world around you, and what type of financial success you will have.
Release the negative thoughts of past financial mistakes and focus on the future.
There are no mistakes in life, only lessons.Robin Sharma
2. set big financial goals
If you want to change your money mindset to an abundant money mindset, then start by setting big goals for yourself.
You can’t make a lot of money if you don’t have any financial goals in the first place.
The simple act of writing down what you want from your finances will help motivate and inspire that next step towards getting there. It’s important to dream big, but also to be realistic about your goals.
- What are my financial priorities?
- How much money do I want to make in the next year or five years from now?
- And how can I reach these goals by making a plan for myself and sticking with it?
9 Short Term Financial Goals To Set For Success
6 Medium Term Financial Goals You Should Have
11 Long Term Financial Goals You Should Have
3. inform yourself about money
Information is power as the saying goes. To understand money you need to learn about it, to educate yourself.
Read up on how to invest money, read about the difference in financial products and services can give you more knowledge on what’s out there. This will help when it comes time for making decisions.
The key here is not to be afraid of numbers or anything else that might make your head hurt. You are going to need an understanding of money in order to change your mindset about it.
Learn how the stock market works and why you shouldn’t be afraid of investing some of your money there.
You can also learn about different types of loans, mortgages, or other financial tools that will help make changes for you and better your life financially as well.
Get the information that will help you make money decisions and to change your mindset about how money should be handled.
These are my favorite personal finance books that are both easy reading and easy to learn from.
The Best Personal Finance Books
These are best personal finance books I recommend to anyone who wants to grow their knowledge and take control of their money. Try and buy a used copy - it's good money sense!
Clever Girl Finance: Ditch debt, save money and build real wealth
The perfect book for beginners focused on women. Women tend to earn less and live longer. We need to know how to manage our own money.
The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness
The 7 baby steps to a total makeover of your money and your ability to manage it. Get out of debt and build your savings.
Broke Millennial: Stop Scraping By and Get Your Financial Life Together (Broke Millennial Series)
Written by a millennial for the millennial. A beginners guide with a strong emphasis on the mental aspect of managing your finances.
Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence
This book changed my relationship with money forever. Focused on achieving financial independence (work becomes optional).
4. realize that you can get out of debt and be debt free
Debt is a tough cycle to get out of because you have the constant pressure or worry that it will never be over.
A key money mindset tip is to understand that paying off debt now gives you more money later. No more debt interest payments to pay.
Being focused on becoming debt free will help you change your mindset about money. It will give you the sense of freedom and independence that comes from not having debt hanging over your head any longer.
To help you keep your positive thoughts while paying off debt check out my post on the benefits of being debt free. Lots of great reasons there!
How To Pay Off Debt Fast And Still Have A Life
Should I Pay off Debt or Build Up Savings?
21 Brilliant ways to get by with very little money
5. determine your life values
Determining your life values is an important step in changing your money mindset because it will help you identify what’s truly important to you.
You’re going to need a set of priorities that are more personal and meaningful for you as well if the goal is financial stability. Which should be everyone’s goal, right?
To change your money mindset, you need to examine your life values.
This means looking at what’s important in your personal life and how those things can be translated into goals for the financial side of things as well. Such as buying a house or saving money for retirement.
Use this list of questions when determining your top priorities:
- What are my top five life values?
- Which of my top priorities would I like to focus on when it comes time for making financial decisions?
- What are the five most important things that money can buy me now or in the future?
Working through these questions will help you determine your own priorities and change your mindset about what’s really important.
6. focus on the future
When you’re focused on the future, it makes sense to be thinking about money and how financial decisions will affect your life in the long-term.
It’s not just about thinking of ways that you can make more money now but also understanding where all that money is going so that there are no surprises later. For example, when retirement comes around.
Don’t just think about having enough money today and tomorrow, you also need to need to focus on the future you. The you in 30 years time. The you that wants to be able to retire and enjoy your life.
You need to start thinking about how you can prepare for that future now.
This long term focus is what will change your mindset into a money making mindset so that you’re no longer living in fear of income or debt. Instead, spend time thinking about how to make money work for you.
When it comes time for making financial decisions, take into account your life values and the long-term future that’s waiting for you.
That way you can change your mindset to make money so there is no more fear or worry when it comes to handling money – only positive feelings of hope and success.
7. cut emotional spending
Emotional spending is a problem for most of us. We spend to make ourselves feel better. But it doesn’t end up feeling that way because actually we want to be saving money not spending it!
We want a saving money mindset not a scarcity mindset around money and feeling like we will never have enough of it.
It’s not just about saving money because it will feel good, but also knowing when to cut back on your expenses so that you have more money in the future.
While emotional spending can feel like it’s hard to control, there are plenty things that you can do. These posts of mine can help you make the changes needed:
How To Stop Spending Money On Unnecessary Stuff
Stop spending money on clothes: 10 Simple Tips for Success
How To Stop Spending Money: 12 Tips You Need
8. create a pot of money for fun – bonus tip
Everyone needs a little fun now and again.
It’s good to put aside money for the things that you want to do but can’t necessarily afford so far.
Create a pot of money that is just for having some downtime, indulging in something or doing whatever it is you really enjoy. Whether it’s going on vacation, a night out or a large bottle of wine!
Fun money is guilt-free spending that should feel like a reward for the hard work that you do every day. You might be knee deep in debt repayment but you can’t be money strict all the time.
That’s why a me-time fund is so important. It helps you keep your new positive money mindset and achieve the goals you have set yourself.
create an abundance money mindset and change your life
You might not be able to control the way your money mindset was formed, but you can change it.
You can change your mindset about money by changing the way you think and feel. The best way to do so is by starting with a positive attitude.
By understanding how your brain works and by following these seven tips, you will find yourself thinking more positively about money and feeling less anxious when using cash or credit cards in stores.
Take the next steps today to create your new money mindset.
Start taking back control of your money by grabbing your copy of the Money Saving Starter Guide today.
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Last Updated on 24th October 2021 by Emma