Budgeting & Saving
If you’re ready to welcome bigger and better things into your life, it’s time to upgrade your financial beliefs. In this article, we’re going to cover steps you can take to change your money mindset.
How to Know That Your Money Mindset Needs a Change
In our article “What is a Money Mindset,” we talked you through the basics. After reading through it, you may have realized that your relationship with money isn’t where you’d like it to be and needs a change.
It’s okay to realize that your money mindset hasn’t been benefiting you all these years. Don’t get caught up thinking about the “should haves” or “could haves”. Your new challenge is building a better financial mindset. This will require you to live in the present. With some time, effort, and the guidance of our suggestions below, we have a feeling your mindset will be healthier than ever in no time.
When thinking about the four stereotypes of money mindsets we used to clarify what your starting point could be, remember: All of those fictional characters made progress throughout the story. If miserly Scrooge, who was caught in a scarcity mindset, can become a cheerful philanthropist, using his money to do good, you can change your mindset, too!
Ways to Shift Your Money Mindset from Scarcity to Abundance
There are simple things you can do to change your money mindset. Here are five tips you can implement immediately.
1. Get Your Budget in Check
If you haven’t managed a budget before, there’s a chance it could feel restrictive when you start. Instead, switch your perspective to appreciate what it can provide you.
Think about Family Banks in Mary Poppins. They’re using their budget to surround themselves with things they like, like good clothing and high-class materials. They also use their money to hire staff, making everyday life easier. Mr. and Mrs. Banks spend every penny wisely, yet they live in wealth. We can conclude that this is all possible due to a well-managed budget. After all, George Banks is a Junior Officer in a bank.
A budget can also help to free you from financial anxiety because you have all expenses covered and can rest easy knowing that. You’ll also learn that you have enough money to cover your expenses. Focus on all these positive things it can bring you to change your money mindset. Remember – abundance over scarcity.
2. Check-In With Yourself Before Making Financial Decisions
Maybe the most important takeaway from The Great Gatsby is that emotions and money often go hand in hand. With budgeting, you’ve taken care of the logical side of your money mindset – but it does not take the emotional aspects of money into consideration. Practicing mindfulness can help you here, especially if you sometimes struggle with guilt after making a purchase.
Remember: A key aspect of a healthy mindset is having the freedom to spend money but being alright with the decision not to. So, next time you see something you want to buy, take note of your immediate emotional reaction but resist the urge to buy it. Once that emotional wave of excitement or desire passes, try your best to engage your logical mind. Ask yourself questions like:
- Do I really need this?
- Will it meaningfully improve my life?
- Was my life lacking before I knew this existed?
The more times you successfully keep yourself from buying things you do not need, the stronger and healthier your financial mindset will become.
3. Start Reading
One of the main reasons many of us don’t have the healthiest money mindset is because we were never taught how to build one. Fortunately, countless respected authors have set out to change that, working to shift their readers’ perspectives on money for the better.
Wake up your inner Hermione Granger, that book-loving muggle from the Harry Potter novels, and start doing your research. Here are a few of our favorite selections for improving your money mindset:
- Think and Grow Rich by Napoleon Hill
- Your Money or Your Life by Vicki Robin and Joseph R. Dominguez
- Atomic Habits by James Clear
As they say, knowledge is power – and the quick shift in perspective these books provide is all you need to discover the true power of an abundance mindset. If you’re not a fan of reading, no problem! All of these selections are available to download as audiobooks as well.
4. Start Writing
A key aspect of the scarcity mindset is that we focus on what we lack rather than what we already have. A gratitude journal can help you to change that and your money mindset in the long run.
Gratitude doesn’t have to be the only thing you write about. Through journaling, you can also learn more about your current money mindset and how you can improve it. We’ve included a few self-discovery prompts for you to get started on this journey:
- What’s your personal definition of financial success? Why?
- What’s your ideal way of generating income? What’s keeping you from doing that?
- What barriers in your life are keeping you from feeling financially confident? How can you remove them?
Spend 10 to 15 minutes journaling about your money mindset every day for a week. We guarantee that after the week is up, you’ll have a much deeper understanding of the beliefs you hold about money. Not only that, but you’ll also know where those beliefs come from and how you can work to change them.
PS: We also recommend writing by hand, as this will help you with internalizing your new money mindset.
5. Keep Your Financial End-Goal in Mind
It’s crucial to keep your financial end goal in mind when you’re trying to change your money mindset. The more connected you are with your end goal, the easier it will be to brush aside the temptations that will inevitably come. If you’d like to learn how to be better at goal-setting, read our article on setting up financial goals.
Another tip: If you’re a visual person, one great way to keep your goals at the top of your mind is to surround yourself with images. Rewatch the movies we have talked about to help you sharpen your mindset. Take a closer look at the characters’ features you would like to achieve or avoid. A vision board can also help you with manifesting and focusing on your goal to change your money mindset.