How do you feel about money? Your relationship with money – how you spend and how you save – is determined by your money mindset. So, how do you create a money mindset that delivers abundance?
What is your money mindset?
Your money mindset is the core values and beliefs you have surrounding money. Your relationship with money is developed from a very early age. It is this relationship that affects your money mindset. Answering a few simple questions will help you understand your current money mindset.
1.What is your earliest memory of money?
2. How was your parents’ relationship with money? Were they spendthrifts or spenders?
3. Did you come from a wealthy home, a middle-class family or did you live on the poverty line?
4. When did you become financially independent?
Reflecting on your answers to these questions will help you understand how you formed your current relationship with money and your behaviours when spending money. Is it purposeful or purposeless? Are you stressed or empowered? Are you living your financial dreams, or is it a nightmare? Your money mindset determines how you feel about debt, how you think about giving and how you feel about people wealthier or poorer than you.
How can I develop a healthy money mindset?
First of all, forgive yourself. Everybody makes mistakes, and we’ve all had a financial blunder in our time. Step one in developing a healthy mindset towards money is recognising past mistakes and moving forward. By moving away from any shame you have surrounding your money practices, you make room for new habits and behaviours to form. Where are those new behaviours coming from? Well, interestingly, not just you… If you want to change your money mindset, it’s also important to surround yourself with positive reinforcement. Read books, like Dave Ramsey’s Total Money Makeover. Practice gratitude. Remember to give to others. Switch the dial from selfish to selfless. Now, set yourself some measurable goals. This includes understanding the ‘what and how and when’ of your money habits. So get yourself a journal and diarise your spending. See exactly where your money is going. Once you’ve got this straight, set some savings goals.
Ever hear of the law of attraction? There’s a saying – ‘we become what we think about – so if you want to have an abundant life, you need to start planning now. Set yourself up with a vision board. Dream big! Picture the details. Once you have your dreams in focus, they will be easier to achieve.
Hone in upon what you have and appreciate it. Part of forming an abundance mindset is appreciating what you have now rather than focusing on what you don’t. Give generously. If ever you’re feeling yourself slip back into that old scarcity mindset, think about giving instead. Nothing opens you up to abundance like giving. It could be as simple as shouting a friend a coffee or leaving your change as a tip. When you are generous, it reinforces the notion of abundance.
Finally, while it’s important to save, it’s vital to have fun too. When you’re making your budget remember to set aside some ‘mad money’. That is money that’s yours to do with whatever you deem fun. Whether that’s treating yourself and your partner to a night on the town, a new outfit or anything you’d otherwise say you can’t afford. Remember, you work hard, so it’s essential to reward yourself too.
So, what are you waiting for? Chart a path to a more abundant mindset. Your journey starts now!