Now that you’re earning your own money, finances can turn out to be a huge thing in your life. How much you spend, how much you save, and how much you want to have for your retirement. We all know the basics of money – spend less that you earn, make sure you have an emergency fund, invest for your retirement.
It’s really that simple… so why are some of us still feeling urgh when it comes to money (or more accurately, our bank account)?
Because establishing a good money mindset is easier said than done.
Wait, what’s a money mindset? It’s basically how you think and act when it comes to money. For example, if you think money is hard earned, then you’re more likely to save than spend. But if you feel that money is earned to give yourself a treat, then shopping here we come!
It’s your perspective towards your money, and that can influence a lot of the way you manage, save, spend and invest your money. Those with a healthy money mindset is likely to feel secure and in control of their finances. Those with a more negative outlook may feel like their financial situation isn’t exactly ideal and are a bit more careless with money.
Of course we all want a positive money mindset to feel more confident about handling money. But what you also need to know that your current money mindset could have been formed even before you were earning your own moolah! For example, maybe you have a parent who is a bit more generous when it comes to money. Or you were always given money whenever you ask for it. Both are likely to influence the fact that you don’t mind spending, even when you really should be saving. Perhaps a parent is constantly stressed about money? This may make you be a little more anxious than necessary about money, constantly thinking about not having enough and therefore, putting a lot of stress on yourself to always make more, more more.
Can you change your money mindset? Of course. Is it easy to do? You can try now with these four tips.
#1 Stop comparing yourself
It’s easy to get sucked in to what social media is showcasing. Your friends may seem like they are living it up with café breakfast every weekend, fun (read: expensive) purchases ever so often. And here you are, wondering why you can’t seem to save,
First thing: The social media isn’t the holy grail. You don’t know the details of another person’s finances. He could be having a fantastic life with fantastic things… but all on credit. While you may not have what you want but at least you don’t have a credit card debt. Remember, all that glitters is not gold. Don’t compare your goals with others. What you should be focusing on instead is your own financial aspirations and how you can get there.
#2 Decide that you want to have control over your finances
Once you set your mind to this, you’ll be surprised how easy it is to want to save more and invest better. Simply because you’ve given yourself a goal: To be more financially wise. So tell yourself this: You want to be in a comfortable position when it comes to money (read: wealthy). Once you’ve decided this, you are telling yourself that you can do it and will work towards what it takes to build your wealth whether it is saving or investing more.
#3 Take charge
According to research by business theorist Thomas Stanley, millionaires spend on average 8.4 hours a month managing and planning out their finances. You may not be a millionaire but do you ever how much time you devote to your finances? Not doing anything equals to not having control over it or putting in the necessary energy to make your money work for you.
So do this instead: Set up a time every week to review your finances. Whether it is updating your budget, paying bills, reviewing your accounts, taking the time to focus on your finances says you are serious about wanting to take charge.
#4 Get new knowledge about money
One of the best ways to have a more positive mindset about money is to know it better. By this we mean reading books, blogs and articles about personal finances or even attending webinars concerning your finances. You could also engage the services of a financial planner to help address your money mindset and give you what you need to get to where you want to be when it comes to your finances.
Photo by Josh Appel on Unsplash