Money can be an emotional subject especially when you’ve grown seeing money as a touchy topic. Not sure if you’ve read my money story but emotions with money can come out in many ways and change your money mindset. Growing up I was very fortunate to have a loving and very supportive family who were always there for me. I grew up financially secure and comfortable. But in my career, I have seen people take control of their finances and their financial future, apart from the tangibility of money itself there is something less tangible something like a good financial mentality that leads one towards financial freedom and independence.
When it comes to improving your personal finances your money mindset is a critical base. Your financial goals could be anything from saving money to becoming debt free or investing but without a good money mindset, all those will be hard to accomplish.
But what is Money Mindset?
Money Mindset are your set of unique beliefs about money. These beliefs drive your important financial decisions like saving, spending, investing etc. People have healthy and unhealthy money beliefs. People with a good money mindset believe:
- I don’t compare myself to others
- I can achieve my financial goals
- I have the freedom to use money but I know where to stop
- I like to help others (monetarily, and give generously) etc
Why is it important to know about your money mindset?
Like any other important work that needs calibration, it is good to sit and edit what is not right. The first step of the path to attain financial freedom is to know what your money mindset is and how to improve it. Your beliefs affect all areas of your life. Do you believe making your girlfriend special on your anniversary? Or do you have a job to pay the next instalment of your home loan? Your behaviours support all those beliefs. Which means you’ll send texts to your girlfriend all day on your anniversary and also you will show up on time at work. Your money mindset grooms the way you feel about debt, your attitude toward people who make more or less money than you, your ability to invest with confidence, your attainment of returns and then how you use it in your favour or just waste it away and more.
How can you improve your money mindset?
- Decide- The first step is to decide that you need to make a change. Getting wealthy actually starts before you open that investment account or when you start putting money in your savings accouunt, it starts when you decide that you are going to be wealthy. And decide to commit to the process and the journey that comes with it.
- Learn about your discomforts and bottlenecks- It is important to know about these things as these are the ones that hold you back. That jealous feeling when you see your neighbour buying the new Tesla or when your friend talks about his Crypto hustle while you don’t know much about it- but the real question to ask is where is that jealousy coming from? The first choice is to let such discomforts keep you stuck, but the second and a far better choice is to embrace it and ride the tide of change. The start of every journey is full of fear and anxiety (the fear of unknown as they say), but the outcomes are the sweetest.
- Know your values- While building wealth, you have to determine why you need this financial success. Your ‘why’ drives a deep purpose and helps you keep your motivation high at all times. You have to know what works for you and it’s important not to get tied up in standards that the world defines for you.
- Financial goals- In this road to knowing yourself, once you are done with the ground work. Healthy money mindset will also lead you to develop clear financial goals. Be it your retirement planning, planning for your child’s education, buying that house that you always wanted or plan for your own further education. The future is limitless and that should be your belief always.
Knowing your money-mindset is the first step towards your holistic wealth planning. Once you know it, you can start developing a good money mindset. There are a lot of fin-fluencers, podcasts, books that can help you achieve this. You can also book a 15 minute free coaching call with me to talk more about your money mindsets and if you want to start on this holistic wealth journey.