Improve Your Money Mindset!

Hate being broke before your paycheck comes in? Instead of thinking of how to make more money or whether to ask for a raise, start by changing your money mindset! First, what is a money mindset? Essentially, it defines how you think about money and influences how you save, how you spend, and how you manage your debt. It’s your attitude towards money and this includes what you want to do with your money, how much money you deserve, your ability to grow your wealth and ultimately, your overall financial confidence.

Now, how does your money mindset impact the way you save? A lot! If in your mind, you think money is for spending and treating yourself, then you are most likely to do exactly that as that’s how you treat money. Or maybe you don’t feel in control of your money – this will cause you to be wary about investments. When this happens, your financial standing stays stagnant as you’re not able to reap the benefits of investing your money.

These are all considered a negative money mindset – where you are pessimistic about your financial future, don’t think you’ll ever learn to manage your finances, and doubt you’ll reach your financial goals. Another way to think of a negative money mindset is relating it to scarcity. Signs of it include living in the short term (because you just don’t see any long term when it comes to money), feeling upset about your current financial situation, and being overwhelmed by your finances.

PO$ITIVE THINKING
What you want is a positive money mindset, one where you associate money, earnings, and savings with something positive, something in abundance. When you view money in that manner, you’re more likely to achieve your financial goals. For example, if you think of money as something that needs to be saved before spending, you’re more likely to do exactly that when you get your paycheck. Believe that money should be working harder to make even more money? Then you’re more likely to be the type to think of ways to invest your money!

Attaining a positive money mindset means working on the way you think about money, working on discipline to be careful with money, and doing what it takes to get to your end financial goal. The question now is… how do you get there? Here are some food for thought:

#1 Commit to being more involved with your money
You want to be in control of your finances and one way to do this is to know what your financial standing is! Keeping yourself in the dark is a sign of a negative money mindset as you may not want to be shocked when you find out you don’t have a lot! But being positive means accepting your financial standing whatever it is and aiming to do better. Try this: Look at your financial statements for five minutes a day. Take a look at your daily transactions on your credit card and e-wallet. Track your expenses.

#2 Create a budget that makes you happy
Hear the word budget and you shudder. We don’t blame you, budgets tend to make people nervous as the whole idea of budgeting is to confine and restrict how you spend your money. It doesn’t have to be that way. Your budget after all should suit your needs. It should make you save some and then spend some – but all within your parameters.

A good rule of thumb? Put half of your income towards bills and necessities. 20% goes to paying off debt or savings. That leaves you 30% to do whatever you want! By doing this, you see money in two different ways – one to save, and the other to spend. It’s a win-win!

#3 Decide you want to be financially stable
That’s really the first start to being positive in your money mindset. Being financially stable starts before you bank in your first savings. It begins with the simple decision to take charge of your finances, commit to it, and trust the process. When you decide you want to be financially stable, you’re telling yourself you can do it. And you will find ways to get there. Try it!

#4 Learn all you can about money
Don’t shy away from the topic; embrace it! Don’t adopt a lackadaisical attitude towards money because when you do that, you’re also going to be lackadaisical about how you spend it. Learn to improve your money knowledge to boost your money mindset. The more you know, the better informed you’ll be to make smarter financial decisions.

Where to learn more about money? There are many fin-fluencers you can follow to be inspired. Listen to personal finance podcasts, read books, blogs, and watch YouTube channels to give you the motivation to turn your negative money mindset into a good one. It’ll change your behaviour with money.

Photo by Mathieu Stern on Unsplash.