Developing a positive money mindset for financial success
Money is that one topic that brings up feelings of anxiety and stress for most people. Money habits, and our mindset around them, play a crucial role in our financial well-being. Whether we realize it or not, our approach to money often shapes our financial success. From how we manage our expenses to how we view our financial goals, every decision we make has an impact on our financial future.
What does money mindset even mean?
Simply put, your money mindset refers to your beliefs, attitudes and behaviors towards money. It encompasses how you think and feel about money, as well as how you approach financial decisions and circumstances. A positive money mindset involves having empowering beliefs about money, viewing financial challenges as opportunities for growth, and developing healthy attitudes towards wealth and abundance.
Conversely, a negative mindset involves beliefs like “I’m not good with money”, “money is the root of evil” and makes you believe you’ll never achieve financial success.
What forms our money mindset?
The short answer, everything. The long answer, well our beliefs around money are shaped by a variety of factors outlined below.
Family – the way you were raised, and how you experienced the adults around you with their money have impacted your own beliefs around money. Was money something you talked about? Did your parents fight and argue about money? Did you live in a constant state of lack when it comes to money?
Culture – What we get told to believe based on our culture will influence our beliefs about wealth, success and financial behavior. Different cultures have different attitudes towards not only the concept of saving, spending and investing but also whose responsibility it is to deal with finances. “The woman’s role is to tend to the family; the man takes care of the finances” is a great example of a gender-based belief you may have been raised with. Or “money is the root of evil” is another belief you may have been told. And they’re so ingrained in our beliefs we often don’t even realize we believe them, until they are questioned.
Education and personal experiences: Our level of education, as well as our personal experiences with money, can inform our beliefs about finances. Positive or negative experiences with money management, investing, debt or financial success can influence our attitudes towards money.
Peer influence: The beliefs and behaviors of our peers, friends and social circles can impact our own money mindset. Peer pressure, comparison with others’ financial situations, and social norms around spending and saving can influence our financial decisions.
How do we improve our money mindset?
Many do not even realize they have any negative beliefs. So where do you start?
Self-reflection is the first step in changing our money mindset. Take time to reflect on your current beliefs and attitudes towards money. Identify any negative or limiting beliefs you may have and work on reframing them into more positive and empowering perspectives. Challenge your beliefs by seeking evidence to the contrary and replacing them with positive affirmations that support your goals.
Once you’ve identified them, the next step is to decide what you want to change about those beliefs.
Educate yourself to increase your financial literacy by reading books, attending workshops or taking courses on personal finance. The more you understand money management, investing and wealth-building strategies, the more confident and empowered you will feel about your financial decisions.
Be more mindful. It is very easy to fall back into mindset traps. Stay present and mindful of your financial decisions and behaviours. As you feel those beliefs creeping in, check yourself and change that inner dialogue. Keep working on your goals because having specific goals to work towards can give you direction and motivation to stay committed to improving your financial mindset.
Money habits and mindset may seem like abstract concepts, but they have a concrete impact on your financial well-being.
By nurturing healthy money habits, setting clear goals and fostering a positive money mindset, you can take control of your financial future.
Remember, it’s the small changes you make today that can lead to big financial wins tomorrow.
– Canadian Immigrant
