Do you feel like you will never be able to get out of debt? Or that you will never have enough money to save for a long term financial goal?
Do you wish you could change that feeling?
Having a negative money mindset by saying ‘I’ll never get out of debt’ or ‘I can’t pay more than the minimum’ can be limiting your ability to reach financial freedom without you even realizing what you are doing.
Making a money mindset shift can help move you forward so you don’t feel like you are treading water anymore.
I will walk you through seven ways you can shift toward a positive money mindset, which will ultimately help you to move toward financial freedom.
what is a money mindset?
The current money mindset you have revolves around your beliefs about your money, how you spend money, and thoughts on your financial future.
Your money mindset will influence the decisions you make with your money.
Even if you haven’t heard of a money mindset, you still have one because your previous decisions and thoughts about money come from somewhere.
Read on to learn how you can make small changes to be more positive. Having a positive money mindset is key to believing you can succeed with whatever goals you want to set for yourself.
your current money mindset is probably influenced by the people around you
How do your parents, friends, siblings, or others in your life deal with money? This can have a profound and lasting impact on the decisions you make with money.
The takeaway is that while you may have been influenced by others, you can consciously choose to make a change. The past does not have to define you. Use this opportunity to gain awareness and embrace a change.
look to others in your life for inspiration
A very motivating and inspiring story came from a goal my brother had set for himself in January 2020. An ambitious goal, but one he still set for himself: make $10,000 in 2020 from side income.
How was he planning to do this? He told me he wasn’t sure when he wrote it down, but it was something he planned to do. After writing this goal down, he came up with a good idea. But then COVID hit and it shifted the ability for him to achieve that plan.
Then a couple of months later, he put another idea into action. Fast forward to September 2020 and he has already met that goal by more than triple. With an online side hustle. What?!
I honestly believe that a significant factor in driving his success to meet his goal well in advance is that he knew he could achieve it. Think about that again: in January he literally had no idea how he would achieve this goal but wanted to find a way…and he did. When his original plan didn’t work out, he didn’t give up. Instead, he shifted and found another path.
My brother and I share many of the same beliefs and positive thinking surrounding our finances and the opportunities to make money. By having a person in my life who thinks the same and I can talk to about our goals, ideas, and plans helps to propel me in the right direction.
You may not have someone in your life who aligns in this way. But that doesn’t mean a change is impossible. Others may see how you are acting differently with your finances and may ask you about what changed and why and how you shifted. How did you make the shift? Well, change how you think using the following seven ways to create a positive money mindset shift.
7 ways you can create a positive money mindset shift
1. be thankful for what you already have
While you may not be where you want to be financially, you still have so much to be thankful for.
Take a minute to appreciate all that you have. Put it in perspective: many people would be in a better position even to be where you are now.
As I accomplish each goal and make progress, I think back and continue to be thankful for the progress I have made.
After I paid off my student loans and was in the process of trying to have my husband’s loans forgiven, I took a moment to pause and think about how just a short time ago I had dreamed about where I was in the process.
It really is powerful to think back like that on each achievement, no matter how small. Try it along your journey and you will realize how far you have come even in the midst of it all.
2. find your why
What motivates you? What is the purpose behind the changes you are making? This is such an important first step when starting your journey to forever financial freedom.
If you don’t have a reason or direction of why you want to make a change, then it will be more difficult to achieve that goal.
Think about your reason why often, especially on the days where you are feeling down and like you are not making progress. This will remind you why are on this journey and why you should not give up.
3. visualize your future
One of the keys to shifting to a positive mindset is by thinking about what you want your future to look like and where you see yourself. By thinking about what you will accomplish, you are showing determination and visualizing that you can do what you have set out to do.
Think about it: if you believe you will never get out of debt or that you can never afford to do something, then your negative and self-fulfilling prophecies will probably turn out to be true.
If you don’t think that you can make a change, then you are setting yourself up for failure by thinking you can’t do it. One of the ways you can help to visualize your future is to set long term goals.
4. be mindful when making new purchases
When it comes to stuff I own or plan to buy, I have switched my mentality to become semi-minimalist.
Becoming a true minimalist is a bit much for my lifestyle with having kids and all. But when I was decluttering and sorting through literally everything, it really hit hard how much you accumulate. I realized that I wasn’t always mindful of what I was buying.
Now, I will think about if I really need something and how often I will use it. This not only makes my home less cluttered, but I’ve definitely saved money by not buying extra stuff.
I did finally buy dressers for our room that were exactly what I wanted. But I waited to find exactly what I was looking for instead of just buying something new. The dressers we had for years that were given to us for free from family were fine, but it was time for a change and I spent the money meaningfully.
Being mindful is not only for big purchases. Even smaller purchases can add up both with cost and turning into clutter. I’ve definitely bought smaller items in the past because it looked cute or seemed like a good deal, but then didn’t really end up using!
5. pay attention to your money
The only way to change your money mindset is to know where it’s going.
Having a budget and really looking into where you are spending your money gives you an idea of where you can cut back on spending. By looking at your current habits, you can see what is essential and where you can make some cuts.
I’m definitely not a fan of completely depriving yourself of joys in life while making a financial change. But…do you really need to get coffee to-go every morning? Can you cut back on one of the subscription services you use if two are pretty similar? One size does not fit all. You need to find what works best for you.
Checking in on your budget can also be important. My husband and I try to sit down together weekly to do a quick overview of our spending so far for the month. Sometimes it’s just me, but I like to sit down with him as often as possible to make sure we are on the same page and so we both know where we are at for the week with our spending.
If you have a partner, I suggest opening the door to discuss your finances. If you haven’t already, make a plan to create a budget together and then meet regularly to review the status. When we have not checked on things regularly, that is when we usually get off track.
6. don’t let your financial past determine your financial future
So you were only paying the minimum amount on your debt or you missed a payment or two. Just because you made mistakes in the past, does not mean you will continue to make the same mistakes.
Use what happened in the past as a learning opportunity and move forward.
By thinking differently and make a change, you can move on and don’t have to keep repeating the same choices over and over again. Your past does not define you or your future. Let that sink in.
Do not let yourself or others dictate the direction of your financial future by thinking you can’t change…because you can. And the first step to change your money mindset to be more positive is by believing that you can.
7. understand your current thoughts about money and your finances to find your limiting factor
What is holding you back? When you think about spending money, saving, or paying off debt, what comes to mind?
Ask yourself these questions:
- Do you believe that you can get out of debt?
- Do you feel you will be able to save enough for your future?
- Are you confident/comfortable with the spending habits you have?
- Do you feel you have control over where you are spending money?
If you felt unsure or uneasy answering any of those questions, then you have found the limiting factor in how you currently perceive money and finances. By finding what is holding you back, you know where to start when deciding where to make a change.
make the shift
Now that you have the tools you need to make a money mindset shift, put them into action! I truly believe that if you change your thinking surrounding money, you can set out on a path you might have previously thought could not be possible.