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Money mindset can be a misunderstood topic. How much money we have, or don’t have, is a cold, hard figure. It’s clearly not in our mind, it’s in our bank account. So how is improving your money mindset actually going to improve your finances?
The truth is that how we think about money can have a big impact on how we manage it. Mindset alone won’t change the number in our bank, investment or retirement account – or in our wallet – but it’s part of the puzzle. And some simple daily practices can improve our mindset around money, with minimum effort.
Learn About Money and Personal Finance
Ignorance about the basics can result in a head-in-the-sand attitude when it comes to money. Knowledge is power, and acquiring knowledge can change how we feel about our financial situation.
Spending just 10 minutes a day educating ourselves on basic personal finance issues such as budgeting, credit cards or how credit utilization works can start to change how we think about the money we earn and how we spend it. Work out which sources you can trust, and spend a little time with them each day.
Change Your Money Script
We all have a money personality, and a closely linked money script, which defines how we talk about money both in our heads and to other people.
Common ways to flip the script include”
- Changing the thought or comment of “I can’t afford that” to “How can I afford that?”
- Changing the thought or comment of “I don’t earn enough” to “How can I earn more?”
- Changing the thought or comment of “I shouldn’t buy that” to “Is that a worthwhile investment for me right now?”
Being more mindful and open around money issues can change the way we look at money. It can persuade us to seek out new opportunities, delay gratification when needed, and make more considered and worthwhile purchases.
Try Some Money-minded Affirmations
Affirmations may sound a little woo-woo, but the reason they work, for many people, is because they change your thought processes. As most of us will admit, our thoughts affect our actions, and our actions affect our results.
I never bought in to the idea of manifestation until recently, when I realized that ‘manifesting’ is really just a way of focusing our thoughts (and therefore our actions) on what we really want.
Writing out – or just thinking – positive thoughts about money can help us re-set our money mindset and, over time, acquire more money.
Track Your Finances
Many of us genuinely don’t know how much we spend, and some of us, such as the freelancers among us, don’t really know how much we earn. Tracking your finances can change your mindset around money, and what you tell yourself about your finances on a daily basis. For example it could turn an attitude of “I don’t earn enough money” into “I earn a decent amount but spend a lot of it on things I don’t need”.
Tracking how much you have coming in can contribute to a feeling of abundance, as you realize it’s more than you thought.
Tracking how much you spend — and on what and for which reasons — can also give you a huge sense of control. Perhaps you’ll see that a lot of your spending is linked to situations and circumstances, many of which can be avoided or changed.
Celebrate Your Wins
Every financial goal reached deserves a little celebration. Maybe it’s a savings goal. Maybe it’s paying off a debt. Maybe it’s coming in within budget this month. Congratulate yourself.
Maybe allow yourself a little, affordable indulgence. Share your achievement with a trusted friend and get a high five. Just find a small but meaningful way to celebrate in a way that boosts your morale and inspires you to stay on track.
Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine. Learn More About Karen
To make Wealthtender free for readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a conflict of interest when we favor their promotion over others. Read our editorial policy and terms of service to learn more. Wealthtender is not a client of these financial services providers.
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