Your money mindset is basically a snapshot of your personal financial personality, habits, behaviors, and beliefs. For most people, that picture is either a pretty good one or a pretty bad one.
Is the snapshot one you’d be proud to share with the world?
Before you can determine what your money mindset indicates about you specifically, you need to have a good understanding of exactly what a “money mindset” is and how to identify yours.
What is a money mindset?
The short answer is that money mindset is the way you think, feel and behave when it comes to money. The long answer is more complicated. Your money mindset is your attitude and perspective when it comes to earning, spending, debt, saving, and budgeting, and it’s usually influenced by your parents and your childhood, your financial experiences, mistakes you’ve made in the past, etc.
Your money mindset is behind every financial decision you make, including what you buy and how you save, as well as how you view others and their money. It’s also a pretty reliable indication of your future financial success.
Ask yourself questions like, “What money lessons did I learn from my parents?” “What did I do with my money when I first started working?” and “Would I describe myself as a saver, a spender, or somewhere in between?” These will help you figure out where you fall on the money mindset spectrum. Questions like this may also point to areas that need some introspection or improvement.
If you grew up with parents who weren’t the most responsible with their finances and you went on to spend your own way through your younger years, chances are good that as an adult, your money mindset isn’t a great one and you can expect more of the same for your future.
That being said, the opposite is also true. Someone whose parents modeled responsible financial behaviors and developed a healthy respect for money will probably continue to have a decent money mindset in adulthood.
You may also find comfort in knowing that your money mindset isn’t set in stone. With some effort, you can shift or improve your financial outlook and attitude, and develop a stronger, healthier money mindset.
How does your money mindset affect your finances?
Although your money mindset isn’t really a matter of how much money you actually have, it can influence your perspective of abundance in that having a scarcity mindset will make you feel like you can never have enough money (regardless of how much you have), and vice versa.
These thoughts and attitudes can get you stuck in a self-perpetuating cycle of limiting beliefs that keep you from feeling grateful for what you have and attracting abundance.
It may seem silly to think that you can will things to be just by believing you can, but it’s true. Your beliefs support your behaviors, and your behaviors support your beliefs. So if you are committed to the belief that you’ll be a millionaire someday, you can make it happen.
Ways to change your thoughts and attitude about money – tips for making it work for you
- Take the first step – Changing your money mindset is a lot like dieting. The first, and often most difficult part, is deciding to make a change and get started.
- Create awareness – Take note of today. (Tomorrow, take note of tomorrow.) Think about how you felt when you spent your lunch break shopping online. Notice your emotions when you logged in to check your bank account balance.
Did you make any decisions today that you were especially proud (or ashamed) of? At the end of the day, today’s decisions are made and you shouldn’t let guilt or stress linger over them, but use them to guide your thoughts and decisions tomorrow.
- Recognize that money is a tool, not a weapon or a magic wand- You are in charge of your situation and whether you choose to improve it or accept the status quo.
- Make a commitment – Set small goals and work towards them no matter what. Don’t be discouraged by hiccups or setbacks. Remember nobody is perfect and everyone makes mistakes, but allowing yourself to get off course after a lousy decision or a bad week can keep you from reaching your goals.
- Turn off your inner critic – Negative self-talk serves no purpose. If your brain starts broadcasting discouraging thoughts or replaying past failures, change the station. Be kind to yourself and try to avoid limiting thoughts and beliefs. Think positive thoughts, kind of a “fake it till you make it” thing.
- Embrace abundance and gratitude – Find ways to be grateful for what you have and for the things you’ve already accomplished, no matter how small they may seem.
The importance of a healthy relationship with money
As we mentioned earlier, your money mindset will bring you more of whatever you’re already having. So if you have a positive money mindset that will breed more confidence, more financial success, more abundance, more satisfaction. But if you’re struggling in a cycle of negative thoughts and actions, you’re going to be stuck on that Sisyphusean ride until you tell the ride attendant (which is you) that you want to get off.
Having a positive money mindset will encourage you to make better financial decisions, which will lead to a more stable financial well-being.
And let’s be honest: All of that negativity, stress, and worry can’t be good for your physical health, either.
How a financial advisor can help
If you still have questions or can’t seem to figure out where to start, talk to a financial advisor. Having someone you can trust in your financial corner can not only relieve some of the pressure of trying to figure it all out and get it all right, but it may also give you peace of mind and confidence in knowing you’re taking steps in the right direction to improve your money mindset.
Just remember: If you believe it, you can achieve it! With the support of a financial advisor in Texas, you can gain the financial confidence you are looking for. As fiduciaries in San Antonio, Texas, the PAX Financial Group financial advisors are legally required to put our clients’ interests first. For more on what this looks like or how we can help, contact us for genuine guidance.
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.