Developing a Positive Money Mindset | INVESTEDMOM
Imagine this scenario: You find yourself sitting at your kitchen table leisurely enjoying your morning cup of coffee. As you stare at that stack of bills in front of you, concern washes over you. You start contemplating just how you are going to make ends meet.
We have all been in that spot. That feeling of financial overwhelm, where every dollar feels like a drop in an ever-deepening money pit. Unfortunately, about 66% of Americans don't believe their relationship with money will improve in 2023. But here's the thing, that very morning was a turning point for me, and it should be for you, too!
I may not be an expert in a suit - I'm just like you, someone who has experienced both the highs and lows of the financial journey. Just like a healthy money mindset changed my life for the better, I truly hope it can do the same for you. Let's dive into maintaining a healthy outlook towards your finances.
Understanding the Basics: What is a Positive Money Mindset?
We must comprehend the psychology behind having a positive mindset towards money in order to grasp what that means fully. A positive money mindset isn't some elusive concept but a tangible approach to money management that can impact your financial well-being significantly. Your economic well-being will see all the difference with a supportive attitude.
On a bad day, when nothing seems to be going right, changing your attitude can work wonders in changing your day. It's like you are literally flipping a switch from negativity to positivity, having a transformative effect on your entire day.
The same logic applies when it comes to your money beliefs. Just as a positive attitude can change the course of a bad day, adopting a positive money mindset can reshape your financial peace of mind.
Definition and Core Principles of a Positive Money Mindset
A positive money mindset doesn't unquestioningly believe that money will magically appear whenever you need it. A mindset like this means maintaining a balanced and positive perspective on your financial situation, rooted in feelings of optimism and empowerment.
Of course we know that we should spend less than we make, set aside money in case of an emergency, and invest in manners such as retirement. However, a positive attitude also requires financial discipline and clarity.
Contrast with Negative Money Beliefs and Their Impact on Finances
To truly grasp the power of a positive money mindset, it's essential to recognize its counterpart – a bad money mindset. Toxic money habits contribute to a bad money mindset. These habits can include relying on credit rather than cash or debit, lying about how much money you have, or relying a little too much on retail therapy.
Once you get the hang of identifying and squashing those negative habits and thoughts, you'll be better equipped to tackle anything that comes your way. Learning about positive perspectives and recognizing their differences from negative thoughts can help you steer clear of financial mistakes and save money in the long run.
Some common negative beliefs are thoughts like, "I am no good with money," or "Money is evil!" When we hold ideas like these, we are holding ourselves back from what we can truly achieve.
Why Mindset Matters
Why does a money mindset matter so much when it comes to spending and saving money? The answer is about more than financial literacy or even just knowing how to budget. A healthy mindset encourages you to recognize the incredible connections between your attitude and success while learning from past financial mistakes.
The Psychological Connection Between Mindset and Financial Success
Imagine two individuals with similar income levels but vastly different financial outcomes. What sets the two apart?
It often boils down to their mindset. Thinking positively about money won't magically fill your bank account overnight, but it sure does give you a good starting point when it comes to making money choices.
Individuals that hold a positive mindset tend to approach the money they receive with a more proactive manner. A mindset like this is helpful in creating financial security and stability.
The Role of Self-Fulfilling Prophecies in Financial Outcomes
Ever heard the saying, "What you think, you become"? Well, it holds in the world of personal finance. Positive thoughts and affirmations can create a huge impact on your life and financial situation.
Some daily affirmations you can tell yourself include, "I am financially free," "I am grateful for the money I have," or "I attract money happily in my life." The possibilities are truly endless. It is important that you nurture a healthy relationship between yourself and your finances.
Believing in your ability to build good habits like other successful people is the essence of self-fulfilling. Implementing better practices like telling yourself daily affirmations will have a positive effect on your finances.
The Ripple Effect of a Positive Money Mindset
A positive money mindset is like a stone thrown into a calm pond. When the stone is thrown, it creates ripples that extend beyond the numbers that are in your bank account.
Like a stone, positive thoughts can influence your life in many ways. These influences include how you perceive your potential, the relationships in your life, and they can create a cycle of positivity with your current financial situation.
You will be more likely to stick to your financial plan when you believe in your financial abilities and approach money matters with optimism. This leads to improved outcomes that further reinforce your positive mindset about money.
Breaking Negative Money Beliefs
If you are subconsciously holding negative thoughts regarding money, they can be holding you back. These negative beliefs act as invisible financial barriers. It's time to recognize limiting myths and challenge them head-on.
Recognizing and Challenging Deep-Seated Money Myths
The first step in dismantling negative beliefs is awareness. We often carry these beliefs from childhood, cultural influences, or past mistakes without even realizing it.
Are you holding onto thoughts like "money is the root of all evil" or "I'll never be good with money"? What good does that do? Identifying these beliefs is the initial but crucial step toward transforming your mindset about money.
Techniques to Change Our Narrative
Here are a few financial tips to help you develop the right money mindset. These practical suggestions can pave the way for a healthier and more constructive relationship with your finances
Visualization: Visualization involves mentally picturing your ideal financial situation. Close your eyes and vividly imagine achieving your financial goals – whether it is paying off credit card debt, building wealth, or achieving long-term financial goals. Visualization can give you the motivation needed to make better decisions and work towards your goals.
Mindful Spending and Saving: Practice cautious spending by being aware of where your money goes. Consider the way each purchase aligns with your financial goals. Similarly, mindful saving involves setting aside money intentionally and regularly, acknowledging its positive impact on your future.
Forgiveness: Chances are, like everyone else, you've made one or two poor financial choices. Maybe you paid way too much for a car you fell in love with or maybe it was one too many shopping sprees. Whatever the case, the two most important things are forgiving yourself and learning from your mistakes.
The Role of Financial Education: Knowledge is Power
When you know the intricacies of personal finance, it can be a total game-changer. In this section, we'll explore just how the right resources can assist you on your journey.
How Understanding Finances Can Bolster a Positive Money Mindset
Financial education propels your positive money mindset. When you understand how money works, you gain the confidence to make informed decisions and achieve your long-term goals.
Embarking on your financial education journey can be manageable. Here are a few tips to get you started in your life:
Reading Financial Books: A ton of knowledge is available in books written by financial experts. Whether you're looking to learn more about budgeting, investing, or building wealth, there is undoubtedly a book that can help you with your needs. Start with beginner-friendly titles that relate to the matter you are interested in,
Attending Seminars or Webinars: These sessions are often designed to be informative and interactive, allowing you to ask questions about money and engage with experts in real time to gain new ideas and information.
Financial Coaching: If you prefer a more personalized approach, consider working with a financial counselor or coach. A coach can provide guidance and help you set goals. This one-on-one support is excellent for fostering an overriding attitude towards money.
Tools to Foster a Positive Money Mindset: Spend Money Wisely Through Daily Habits
While understanding the psychological aspects of a money mindset and gaining financial knowledge is crucial, putting that knowledge into practice is where the real magic happens. Your daily habits and routines shape your life; the same holds for your economic well-being. Create a strong foundation for a lasting money mindset by incorporating habits into your day.
Here are some practical recommendations to incorporate into your daily life to prioritize financial self-care:
Keeping a Journal: Keeping a money diary can be a great tool. Start daily by jotting down things you're grateful for regarding money. It could be as simple as being thankful for a stable income, being able to afford essentials for family members, or even paying off debt through money management.
Setting and Revisiting Goals: Goals provide a sense of purpose and direction. Set specific, achievable financial goals and break them down into actionable steps. Make it a habit to review your goals, track progress, and adjust the plan.
Celebrating Small Wins: Remember to acknowledge your achievements before significant milestones. Celebrate every financial victory, whether paying off a credit card or sticking to a monthly budget. Recognizing progress reinforces positive behaviors to help achieve those wins.
Keeping an Emergency Fund: Financial security is crucial to a positive mindset. Make it a daily habit to contribute to your savings fund. Knowing you have a financial safety net can reduce anxiety around spending and encourage focus on making confident financial decisions in daily life.
Conclusion: The Journey to Financial Success
In wrapping up our discussion on fostering a positive money mindset, it's clear that this journey isn't just a concept but a practical approach to reshaping your financial life. Throughout this article, we've explored the psychology behind money, the importance of financial education, and the daily habits you can implement today!
Here at Invested Mom, I understand the importance of a positive attitude regarding money. I am excited to introduce my Money Abundance Journal, which is perfect for those looking to shift their mindset regarding money.
Use the positive money mindset you cultivated, keep learning, and make the most of available resources. Your future is in your control, and I am here to support your financial wellness every step of the way!
Meet the Author:
Inge was born and raised in Cape Town, South Africa, and moved to Canada in 2010 looking for a better life. She always had an entrepreneurial spirit and started her first side hustle when she was 9 years old – selling fudge at school during lunch breaks.
It wasn’t until much later that she realized that saving isn’t enough to get ahead. She was always very interested in real estate, but saving up for a down payment was grueling and slow, and the demands of life kept getting in the way.
She started investing in herself and upgrading her skills while learning how to invest. She quickly became debt free and compounded her money at a staggering rate.
It wasn’t until she became a coach that she realized how significant an impact she can make in people’s lives by sharing her journey, learnings, and processes.
So here she is, advocating for everyone who is invested and wants to build their wealth, especially the mommas!