Personal finance, Money, Financial freedom
"Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver." -Ayn Rand
- In this Article -
What is a money mindset
How is your money mindset formed
Creating and maintaing a healthy money mindset
Money affirmations
Books to improve your money mindset
According to authors Brad Hewitt and James Moline, there are 3 goals that people focus on which drive their financial decisions. These goals include (1) how much does it take be successful, (2) how much does it take to be significant, (3) how much does it take to be secure? People often believe that having more money or more stuff will answer these questions when, in reality the answer has very little to do with money and everything to do with a mindset.
1. What is a money mindset
A money mindset is collection of beliefs and way of thinking about money. It influences the choices you make regarding how you handle money and how much money you save and invest.
2. How is your money mindset formed
There are many factors that influence your money mindset. Your mindset and relationship with money is formed at a young age. What you are told and what you experience as a child has the ability to shape your thoughts and attitude about money. Take a moment to consider what you were told about money when you were growing up and how it affects the financial decisions you make today. Ask yourself whether you have an abundance or scarcity mindset.
An abundance mindset is when you believe that there are enough resources in the world for everyone and that you have access to these resources. People who have this mindset have the ability to look for more ways to earn, save or invest.
While the scarcity mindset is the opposite, it refers to the belief that there aren't enough resources or they are only limited to certain people. This mindset often creates fear, stress, anxiety and insecurity. Therefore, it is imperative to work towards creating and maintaining a healthy mindset.
3. Creating and maintaining healthy money mindset
What you believe about money drives your behavior. Left unchecked you could go through your whole life settling for less or living in fear.
Many people have an uncomfortable relationship with money. They often find it difficult to talk about their finances or seek help. This often creates a hide-and-seek relationship were money is seen as a master and not a servant.
Creating and maintaining a healthy money mindset requires effort and is often a life-long journey because our lives are constantly evolving. Having a positive or an abundance mindset will,
Improve your confidence
Increase your earning potential
Allow you to dream big
Enable you to enjoy what you have
Empower you to give more
Here are 5 ways to achieve an abundance mindset,
1. Take the time to interrogate your beliefs - write down how you feel and think about money (please don't use this as an opportunity to shame yourself). Use this exercise as a way to get to know what you have been doing well and notice your areas of improvement.
2.Take note of the power of your thoughts - recognize that your thoughts are powerful and you have the ability to align your thoughts with your goals.
People who have a healthy money mindset believe things like:
I have the ability to achieve my financial goals.
My personal finances are unique to me, I will not compare myself to others.
I can spend, save and invest. Nothing is off limits for me.
I have the ability to give generously.
3. Stop comparing yourself - comparison destroys confidence, creates jealousy, anxiety, fear and feelings of inadequacy.
4. Express gratitude - being grateful enables you to be positive and enjoy what you have.
5. Use positive money affirmations - affirmations can eliminate limiting beliefs and create a positive and growth mindset. Check out the affirmations below, you can use them as they are or as a guideline for you to write your own.
4. Money affirmations
I forgive myself for my past money mistakes
I am worthy of forgiveness and financial wellness
I am capable of handling money
I can be trusted with money
I am good with money
I am making financial decisions that are good for me and my future
The more I learn about money, the better my ability to make sound decisions
I am living a life of financial freedom
I release financial stress over my life
I welcome the ease that comes with financial freedom
I am living in abundance and money comes easily to me
5. Books to improve your money mindset
Think & grow rich - Napoleon Hill
You're not broke, you're pre-rich - Mapalo Makhu
What's your move - Nicolette Mashile
The Total Money Makeover: A Proven Plan for Financial Fitness - Dave Ramsey
The Psychology of Money: Timeless lessons on wealth, greed & happiness - Morgan Housel
"Money is a terrible master but an excellent servant "
-P.T Barnum
References
Hewitt, B & Moline, J. (2015), Your new money mindset: create a healthy money mindset, Tyndale House Publishers.