It’s not just about how much money you have or don’t have, as it turns out. It’s actually more about your mindset about money: If you have a negative money mindset, there will never be enough money, no matter what.
Hard as it may be to believe, there are plenty of millionaires who are unsatisfied and uncomfortable financially, and probably just as many average people with average bank accounts who feel like they have just what they need.
This suggests the difference has less to do with how fancy or expensive your car is and more to do with how you think and feel about that car, how much you paid for it, how you paid for it, and how much it’s worth to you.
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Because wealth isn’t just determined by how much money you have – it also depends on your overall financial mindset, what you believe is “enough” money, and how you feel about having (or not having) enough.
If you don’t currently have the right money mindset and you want to improve it, or if you do already have a positive mindset and want to foster that positivity, read on to learn about how having the right mindset can grow your wealth.
What is a money mindset?
Your money mindset is the way you think and act with regard to money. It’s usually rooted in your childhood experiences and your parents’ financial influences and it’s involved in all aspects of your financial life, from earning and spending to saving and budgeting.
Your money mindset is all about how you perceive money, and how you perceive others and their money. It also indicates your financial future – if you have a positive money mindset, you’re likely to be successful; if you have a negative money mindset, you’re more likely to have poor financial habits.
What is the ‘right’ mindset for growing your wealth?
Having the right mindset means finding your perfect balance between focus and motivation – to better your situation or meet your financial goals – and anxiety, with just the right amount of fear, which keeps you aware and vigilant.
No two people are identical, so while there’s no true way to define one ‘right’ mindset, we can clearly define a ‘wrong’ mindset and avoid it at all costs.
Remember that your money mindset isn’t actually about what you have, but it can influence your perspective – so if you have a scarcity mindset you’re likely to get stuck in a self-perpetuating cycle of feeling like you can never have enough, no matter how much you have.
Start by having a plan
It would be nice to get out of debt overnight or become a millionaire after saving for a few months. Unfortunately, it doesn’t usually work that way for most people. How it does work is by taking one first step, and then keep moving in the right direction.
Once you get that forward momentum going, your thoughts and beliefs should begin to align with your financial goals and shift towards a more positive money mindset.
Start small. Start somewhere (or stay nowhere). One percent is more than zero percent, right?
First, things first. If you don’t have a monthly budget yet, set and stick to one, tracking your income and expenses. Look at the data from a few months’ incoming and outgoing funds, which should give you a pretty good idea of where you might be able to make improvements.
Once you’ve worked out a budget, you can begin diverting money to establish a healthy emergency fund. Standard operating procedure says you should have about six months’ worth of expenses set aside, but don’t freak out if you just did some mental math and realize you need to get from $0 to $15k.
Stay calm, and start somewhere. Saving $1 a day for now, then increasing to even $2 a day when you’re able to afford more, will begin to move the needle. Before you know it, your savings will start to snowball.
Having done all that, now you can begin saving toward your retirement.
Invest in yourself and your future
Remember what we said about taking that first step to growing your wealth? The same simple adage holds true for investing in your future and retirement. If you don’t actually start you’ll never save a penny.
The younger you start when you start putting money aside for retirement the better, of course, but it’s never too late. Talk to a financial advisor about how much money you’ll need for your retirement years, then work towards achieving that goal.
As with contributing to your emergency fund, determine how much you can afford to save, no matter the amount, and do it. If your employer offers a 401(k) plan with matching, you should aim to contribute at least as much as the company is willing to match. Then if raises, bonuses, or changes in circumstance allow you to contribute more in the future, you can increase the amount you are setting aside. The growth will be exponential.
Putting this plan in place will give you peace of mind and contribute to a positive money mindset.
Where money mindset really comes into play here, of course, is figuring out that ‘how much is enough?’ number, and then being able to recognize and be satisfied with it. That abundance mindset is likely to bring about more of the same, just as a scarcity mindset will increase your financial anxiety and make you feel like you’ll never have enough, even when you do.
Another way you can invest in yourself and your future is to take good care of your health now. Keep up to date on well visits and vaccine schedules. Stay protected by adequate health insurance coverage, and have a plan for health care after you retire. Healthy body, healthy future, healthy mindset!
How to find the right financial advisor for growing your wealth
Finding the right financial advisor for growing your wealth is no different than finding the right financial advisor for you for anything else.
Find someone, preferably locally, who offers the services you need. Understand their fee structure. Confirm their background and experience with the Financial Industry Regulatory Authority (FINRA) Broker Check or Securities and Exchange Commission (SEC) Advisor Check.
If a financial advisor is still in the running after all that, meet with them and talk about your goals and expectations. A good financial advisor will give you more than just an investment strategy – they can also be your cheerleader and accountability coach, helping you get and stay on track so you can maintain a positive money mindset and a healthy financial situation.
At PAX Financial Group, we are passionate about helping you achieve your life goals. We have more than 100 years of combined experience and are totally focused on your needs. We will take the time to construct a custom comprehensive financial plan created just for you.
The team at PAX Financial Group is here to help with all of your financial planning needs! Schedule a no-obligation conversation today.
This material is provided by PAX Financial Group, LLC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The information herein has been derived from sources believed to be accurate. Please note: Biblically Responsible Investing(“BRI”) involves, among other things, screening for companies that fit within the goal of investing in companies aligned with biblical values. Such screens may serve to reduce the pool of high performing companies considered for investment. Investing involves risk. BRI investing does not guarantee a favorable investment outcome. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product and should not be relied upon as such.