Manage Your Finances

How to Alter Your Money Mindset for the Better

In the last 3 years, we have seen a dramatic shift as to how money is earned, and also how much money is being spent. The term ‘money mindset’ has been well known amongst the richest people for some years, but it is only recently that people on a lesser financial scale have begun to work towards shifting their money mindsets, and ultimately creating greater wealth for themselves.

The question of whether a great money mindset will make you rich is a difficult one. Without a strong mindset, you will struggle to have the respective financial goals, but without taking actionable steps, you won’t achieve anything. 

With so many financial burdens that have been placed on the population with economic stains we have seen since the Covid pandemic, it’s very common to have a poor relationship with money. Adopting a good money mindset is to shift your perspective, and see money as ever-green instead of scarce.

What is a money mindset exactly?

A positive money mindset can be defined by how it influences you. If money is not considered to be a burden for you and you can effectively manage any sums as an investment into yourself and your future, you can be considered as having a great money mindset. This should be a core belief that is embedded into your thinking. Money doesn’t bring up feelings of stress and worry, but instead ignites a feeling of abundance, no matter how much you have.

What does a poor money mindset look like

A poor money mindset, as mentioned, has been a prevalent trait amongst a lot of the population. This is understandable, however recognizing a need for change is the first step towards shifting your perspective of money. If you resonate with any of the following statements, you likely are in a poor money mindset:

  • You worry about paying your bills each money, even with a full bank account 
  • You do not consider any other streams of income and settle with your current amount 
  • You don’t see yourself having wealth and resent people who have it instead
  • You think people with wealth did not earn it, and were instead lucky 
  • You struggle with debt and can’t seem to get out of it 
  • You don’t think money can be used for good

Although these statements can be subjective, if you resonate with any you likely are in a rut with money and how you look at it. Being pessimistic about what your future will look like is the clearest sign that your relationship with money is due a change.

How to start making a change

If you are willing to accept your current situation and start to work towards change, consider taking the following steps: 

Come to terms with the present 

If you want change to happen, you need to accept the present. Whilst dreaming of being a rich and successful millionaire in the future is reasonable, this is not what will shift your mindset. Accepting that you need to change for now and then taking actionable steps to change your thinking will get you the future you hope for. If you are struggling right now, that’s okay, but reflection is required when understanding how you got into this position. Once you know where you have gone wrong, you can work towards shifting the behaviors and mindset that you are currently operating with, and exchange them for better, money-proficient ones. 

Understand that you are in control 

If you have not heard about concepts of internal and external locus of control it is well worth reading up on. Essentially, people who operate with a poor money mindset likely have an external locus of control, meaning they feel as though they are not in control of their own lives. The outcomes of their lives are determined by fate and how you decide to change will not affect where you end up. If you wish to have a good money mindset, you need to adapt to an integral locus of control. This will determine that any outcome that happens is a direct result of your hard work and actions. Making this shift will allow you to feel much more in tune with yourself, and make much more informed financial decisions. 

Write a financial plan 

Financial plans are important if you wish to take actionable steps to improve your money mindset. As boring and time-consuming as it may sound, they are so helpful when it comes to creating a tangible and realistic plan to start making change. This plan can be as simple as writing down your incomings and outgoings. The first plan must be a clear reflection of what your current expenditure is. Once this is some, begin to weave through what unnecessary spending is being made with areas for saving. Being too tight with money is not a realistic option, so if you are being strict with spending but still struggle each month, it is time to increase your income and expand the streams.

Be open to abundance 

Being open to an abundance mindset is very important. Although it can sound cliche, feeling as though you have the world at your fingertips is a key part of having a good money mindset. Considering money and being limited and scarce can of course be a result of how you were raised and how your environment shaped you, but there is always room to develop your money mindset.

Reward your efforts 

Once you have begun to start making the changes to implement a money mindset, you need to consider rewarding yourself for your efforts. That does not mean to say you should fall back into bad spending habits and spend like a millionaire, but you should allow yourself to treat each milestone you reach. For example, if your new and improved money mindset has led you to increase your income and you have been wanting a new watch band, treat yourself. This is also considered positive reconditioning. Make sure you do not excessively treat yourself., but allow something small each time you see improvement in your lifestyle and finances.

Bottom line

Overall, changing your money mindset will not happen overnight, but it can be done. No matter your upbringing or your current financial state, there is the opportunity to pull yourself out of struggle and find peace and security. Money will be a burden as long as you perceive it to be. Shift your mindset, and financial abundance will flow.

By Amy Jones

Amy Jones is a freelance writer for many different business publications. With a range of knowledge in the business and investing sector, she is an avid researcher and writer in the field. Having worked with a number of different businesses, Amy is now a freelance writer looking to specialise in the topic.

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