Your money mindset is your attitude and beliefs about money. It determines how you handle, spend, save, and even earn money.
Depending on your mindset, you may always be broke, a super saver, or you may be able to earn money with ease. While you may think your financial situation is dependant on outside factors, much of how you relate to money starts in your mind. Knowing this, it’s understandable so many people want to improve their money mindset and create financial stability in their lives.
If you are struggling financially and think it might be due to an unhealthy mindset, this guide is for you.
Understand Your Relationship With Money
The first step in changing your money mindset is to understand your relationship with money.
What were your earliest memories of money? Did you have jobs for teens when you were growing up? How does money make you feel?
Answering these, and similar, questions will help you understand if you feel primarily negative or positive about money.
Challenge Your Limiting Beliefs
One of the best ways to shift your mindset is to challenge your limiting beliefs. Do you believe you have to have a certain educational background to make six figures? Then research jobs and careers that are high-paying and require no formal education.
Do you believe people with money are all bad, greedy, and evil? Then research wealthy people who have charities and are always participating in philanthropy.
Challenging these beliefs will help you see much of what you think about money is wrong.
Change Your Money Story
Your money story is the impact of your childhood on your money mindset today.
Most of your money story comes from your parents or events that happened as a child. Without knowing it, your parents could have passed down a scarcity mentality by openly worrying about money, consistently telling you they couldn’t afford items, or by tightly controlling money.
To change your money story, write down all of the things you were taught about money. See if those ideas are hurting you or helping you today. Be consistent with this exercise and you will gradually start changing your money story.
For many people, a driving force behind their negative money mindset is a lack of financial education.
If you were never taught, and never learned how to manage your money, you may have the belief that money is difficult to handle. This belief will become a self-fulfilling prophecy and you will always have problems managing your money.
By learning personal finance, you can also learn methods that will help you better handle your money. Consider reading personal finance books, following finance blogs, and listening to helpful podcasts. Not only will this help you with money management, but it will also positively influence your money mindset.
Use These Tips to Shift Your Money Mindset
By using these tips, you can shift your money mindset from negative to positive.
Start by understanding your relationship with money. You can also challenge your limiting beliefs, change your money story, and educate yourself on financial matters.
Follow these tips and you can greatly improve your money mindset.
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