Before we start talking about debt payoff and investing strategies, we need to talk about mindset. Sorry, thems the rules.
I’m going to be totally honest with you, I didn’t want to write a post like this at all.
I used to think about finance as a more black and white thing.
You have $x amount of money, bills are a certain amount, and whatever is leftover is for spending and saving. Boom. Done. Eaassssyy.
But it’s not that easy, right?
If almost all of us know basic personal finance principles, why don’t we all have good financial habits? I think it comes down to mindset.
What is Money Mindset?
Money mindset is a combination of your thoughts and feelings about money.
Everything you experienced growing up (did your family have money, or did your family struggle?), how your family and friends talked about money, the choices you made regarding money… All of it has influenced your money mindset.
Some people have healthy money mindsets, and other people may have some work to do on their money mindset.
Why is your Money Mindset important?
Your money mindset can have an affect on your money decisions and your level of motivation towards reaching your money goals.
Think about it, if you believe you don’t deserve money or you aren’t smart enough to handle money… Do you think you’ll be successful in trying to save more money or make more money?
Money Mindset Shifts
Don’t worry, I’m not going to for you to make vision boards or talk about the law of attraction.
But I do want to address some things that will hopefully get you to start thinking differently about yourself and your finances.
These are what some people call mindset shifts.
Don’t worry, I’ll keep the cringe to a minimum.
Maybe you made some mistakes before. Had too many credit cards, spent more than you earned, maybe you even ignored your finances and hoped things would just go away.
That’s all in the past now, okay?
The financial mistakes you made in the past aren’t a reflection of who you are today. They don’t define you. They are NOT tied to your self-worth.
Also remember that you can’t go back, what’s done is done.
The best thing you can do now is make better decisions moving forward. And that’s what we’re gonna do!
Don’t Be Scared
Are you one of those people that avoid opening bills? Do you dread checking your balance? Does the thought of investing make you queasy?
I was the exact same way a year ago.
Here’s the thing: we spend so much time making our money.
Do you have a typical 9-5 job? That’s over 160 hours a month that you spend working for your money.
You owe to yourself to take control of it.
Yes, you might not be in an ideal situation financially, but you can’t fix it by burying your head in the sand. Don’t be scared, okay?
Know Your Why
Okay, yes, finances can feel like smooth-sailing once you get everything organized and you have a plan.
But this is a long-term game. Your finances are something that you’re going to have to manage for the rest of your life.
So to keep yourself going you’re gonna need a north star. A why.
To get a sense of what your why is, here are some questions you can ask yourself:
Why are you doing this (getting your finances together)?
How will you feel when you get your money under control?
What do you want your money to do for you?
What do you see in your future?
Whenever you want to throw in the towel on this money management thing, just think of your answers to these questions. Hopefully, it motivates you and helps you push forward.
Focus on Yourself
It’s really easy to get sucked in what everyone else is buying and doing.
You then start comparing yourself to other people, you wonder why you aren’t doing as well financially, then you start to go crazy.
Other people’s finances have nothing to do with you.
Just because someone else has something, doesn’t mean you’re lacking something.
And just because someone else has something, it doesn’t mean that something was taken away from you.
“Mind the business that pays you”.
You might only have $2.36 to your name right now.
At least it’s something.
It might sound totally cheesy, but for the next seven days, here’s what I want you to do: Instead of saying “I only have [$xx]” or “I wish I had [x]”, change it to “I’m happy I have [x]”.
Trust me, after awhile you’ll start to feel a change. Until then, fake it until you make it.
Where to Go From Here
These aren’t all the mindset shifts that you may need to make.
As you go forward and try to reach your money goals, keep checking in with yourself.
Ask yourself “why” often. Why do I feel this way? Why would I have negative thoughts about this?
When you check in with yourself and ask yourself why you feel a certain way, you can catch other money mindset shifts you may need to make and you can begin working on changing them.