For the longest time I saw money through a negative lens. This unfavorable perspective caused me to have a pessimistic money mindset and, as a result, I often found myself struggling financially.
I can remember having conflicted feelings about money, probably because of my upbringing. At times I would find myself saying things like “Money just slips through my fingers” or “I don’t care about money because it isn’t that important.”
I can even remember misquoting the Bible, saying, “Money is the root of all evil”.
Maybe this has happened to you too.
If it has then keep reading because today, we’re going to talk about how you can adopt the type of mindset that attracts money while staying loyal to your principles.
What is a Money Mindset?
Often your money mindset has been shaped by your family, friends, as well as the neighborhood you grew up in. It can also be shaped by more recent daily interactions such as a sudden financial windfall or a setback.
According to the Motley Fool, “A money mindset is a manifestation of your attitudes and beliefs about money.” It can be further defined as beliefs, which are often subconscious, that you have about money.
The mindset you possess about money determines your relationship with it.
The Two Money Mindsets
Your relationship with money is bound to fall somewhere on the spectrum between two money mindsets, scarcity and abundance.
Let’s look at them both.
· The Scarcity Money Mindset.
When it comes to money, do you feel you have a lack of control? Does talking about your finances bring anxiety and fear?
For people with a scarcity money mindset, there is a negativity that surrounds the topic of money. This often causes them to be affected by defeatist thinking, having thoughts like “I’ll never be good at handling money.”
So, to determine if you’re being affected by the scarcity mindset, ask yourself if any of these apply to you.
Feeling stressed about money.
Believing you’re not good with money.
Thinking or believing that money is for “rich people”.
If you feel these apply to you, you might have a scarcity money mindset.
When you have a scarcity mindset, it can cause you to subconsciously believe that money is limited or scarce resource.
· The Abundant Money Mindset.
On the other side of the spectrum, you might have an abundant mindset when it comes to money.
Do you feel generally optimistic about your financial future, even in the face of uncertainty?
Are you usually generous with money?
Do you have confidence that you will always be able to make and receive money when you need it?
If you answered ‘yes’ to these questions, you probably have an abundant money mindset.
With an abundant mindset, you do not fear spending because you believe there is enough money, and you feel confident that money will come in.
How These Mindsets Can Affect You
If you believe you’re “not good” at math, you’ll suck at math. The same goes for money. Whether it’s math or money, your beliefs shape how you perform.
This is why it’s so important to understand what type of money mindset you have and, if needed, change it. Because your money mindset can be your most important financial asset.
With a scarcity mindset, you might find yourself equating your self-worth to your net worth. You might feel so anxious about your finances that you avoid looking at your bank statement.
Even worse, believing in scarcity can result in you living paycheck-to-paycheck, just scraping by.
But what would happen if you felt in control of your finances, would it help you to stop living paycheck-to-paycheck?
I’m sure you agree it could help.
Let’s see how you can shift your beliefs.
5 Tips for transforming your money mindset:
1. Examine your existing beliefs.
The first step to changing any belief is to become aware of it. This is why it’s so important to examine the beliefs you hold about money.
For many people, their money mindset was formed as a child and has continued to follow them for their entire life. Starting with this awareness can help you see how different things influence your behavior with money.
Take a moment to answer these questions:
What are your feelings about money right now?
How was money handled at home growing up?
When your parents talked about money, what did they say?
What beliefs/opinions do you have about rich people?
2. Reframe negative beliefs.
Reframing is simply looking at something differently. You can reframe your subconscious beliefs by taking a different perspective.
One of the simplest ways to reframe the way you look at something is to repeat positive affirmations.
I am a generous person.
Money is attracted to me.
I am confident and in control of finances
My financial future is secure.
Of course, there are many more of these positive money affirmations you can find and use.
As you use these affirmations, you’ll find your mind shifting from a scarcity to an abundance money mindset.
3. Create financial stability for yourself.
Financial overwhelm often results from lacking a financial plan.
To move from feeling overwhelmed and living paycheck-to-paycheck, the most important thing is to create a plan for developing financial stability. As you build your plan, think about the type of financial goals that will help you feel comfortable.
Look at your current income and spending. As you examine your findings, figure out where you can cut costs. Use this “extra” income to reduce your debt.
One of the best things you can do to improve your money mindset is to create a budget.
I know many people resist this but having a budget can give you the financial freedom you desire. It does this by helping you learn the discipline needed for long-term money management.
Having a budget can also help you cut your emotional spending habits. By having a plan, you’re less likely to start spending when you’re feeling stressed or sad,
4. Focus on you.
Some people have the money game all figured out. Be okay with this.
Let go of any envy you have about others having a lot of money. They have that money because that’s the path they’ve taken.
Instead, focus on your journey. While you can plan for an even brighter future, learn to be happy with what you have right now.
5. Adopt an attitude of gratitude.
Every day spend some time thinking about what you are already grateful for. Acknowledge the things in your life you already have, like friends, family, shelter, water, and even the Internet.
Study after study shows that grateful people make better choices. They also take better care of themselves and are healthier.
When even the smallest financial windfall appears, celebrate. Having this mindset will help attract even more money into your life.
Stop letting your money mindset sabotage you!
Your money mindset isn’t about how much money you already earn or have. It’s about what you think about money.
You can change your money perception by using these tips.
Here’s to you having a more stable and happy financial future!
Would you like to be able to focus on creating the life you want? You can by developing a positive money mindset using the tips you’ll find in Secrets of the Black Belt Mindset: Turning Simple Habits Into Extraordinary Success.