Our money mindset affects so many different things.
Alright, that sounds a little cheesy or too good to be true… I know but hear me out.
How you feel about yourself and your happiness is included there. Before we dive into money mindset beliefs and exercises to improve, let’s start with the basics.
What Is Your Money Mindset
Credit to Aimee Cerka for this amazing article – “The Money Confidence Coach and founder of Money Masters Inner Circle. This means I equip you to master your money by creating confidence in your ability to solve the money problem, so you can stop living paycheck to paycheck and instead create options, security, and build wealth.”
Money Mindset is the thoughts and emotions which you have around finances and money directly and indirectly.
Your day-to-day decisions and your ability to achieve goals all stem from your money mindset.
The part that most people don’t realize is that our brain wired, how we react to things, and our money mindset when we were young, like really young. For most people, they were under 10.
How we perceived, experiences, conversations, etc. we, created these stories in our mind (because it’s crazy powerful), and those stories are what we tell ourselves when our money mindset kicks in.
Now let’s talk about how you can create a positive money association, which translates to an improved money mindset so that you can accomplish those dreams and that financial success you’re looking for.
Here are a series of questions that you should ask yourself out loud and write down your answers. Handwritten is going to be the key because it allows true articulation and the ability to look back on your answers which will probably surprise you.
Money Mindset Questions:
- How do I feel about money?
- What is the purpose of money?
- What did I see from my parents that I never want to happen to me regarding finances?
- The positive things I learned from my parents about money?
- On a scale of 1-10, how confident am I that I know how to create the financial security and success I am looking for–for myself and my family?
Once you’ve handwritten these responses, look at them; what emotions come up reading your answers?
Do you feel confident in your relationship with money? If you’re like most of us, the answer is no. And it is perfectly fine!
Simply realizing you have something you should improve upon is a huge first step – so congratulations to you! Celebrate!
If you are thinking that isn’t something worth celebrating… Then welcome to your first assignment to improve your money mindset.
Celebrate your wins!
Yep. That is affecting your money mindset. You need to be able to celebrate when you achieve something, take action or receive recognition. How many times have you received a compliment and then said; it should have been this or discounted it in some way instantly?
That is called deflection.
When you deflect your compliment or wins and actions – you are negating the progress that you made. It creates a vicious cycle of not feeling good enough. This cycle often stems from an experience that we had as a child where we didn’t feel good enough, nor heard, we weren’t worthy of something, etc. This cycle comes from… yeah, you guessed it, your money mindset.
Action Step #1 to improve your money mindset – write down a minimum of 5 things you accomplished every day. Yes, every single day! Create the habit, set a reminder on your phone, something until you’ve done this for about 45 days.
You’ll feel better about yourself, which in turn relates to your happiness. See how this is starting to come together?
Healthy Money Mindset Action Step #2 – write down 10 things you are grateful for every morning. These should vary. You are not using the same 10 things every day; however, sometimes they will overlap. It can be little things; we often take those for granted. Here are some examples to get you started: your vehicle, vision, electricity, family members, children, employment, food on the table, health, etc.
If you really want to power up your money mindset and happiness, I’d challenge you to make a list of 100 different things you are grateful for. The fastest you complete this gratefulness challenge, the more it shows how you feel about money and the blessings you already have.
Money Mindset Beliefs
These are some of the main things I hear that rooted in the money mindset. Tell me if you relate to any of these.
- I have to pinch pennies to be able to be wealthy or financially stable.
False – couponing and pinching pennies is not a way to create long-term wealth.
- Budgeting means I can’t spend money on what I want.
False – often, media teaches us that budgeting is done out of a space of lack. That is not what budgeting is designed for. The act of budgeting is simply telling your money what to do, and if you don’t do it, someone else will.
- When something is on sale, that is a perfect reason to buy it.
False – this is impulse spending. There are exceptions when you should buy things on sale, but the strategy you need to use is what I call the 24-hour rule. You can learn more about that here and how to implement it into your life. It does not mean that you will never buy anything again, but it means that you’ll stop ending up with a bunch of stuff for a garage sale you bought on sale and never used.
- I’m “doing pretty good” we make a good income – we aren’t living paycheck to paycheck.
False – this is deadly. High income can give you a false sense of security, but we find statistically that you are much more likely to end up in a worse financial state if you haven’t made the proper financial security measures. But what’s worse is all the unhappiness and the fights come to the surface when you achieve a higher income, and you aren’t ready for it. To combat this work, with a coach to uncover the root of these feelings and reactions.
Lastly, let’s discuss how your personality plays a part in how your money mindset.
There are 4 main financial personalities that I see – find out what yours is here with this quiz.
Your personality does predict how your money mindset blocks appear.
How do you react essentially?
Do you bottle your emotions up?
Are you on a roller coaster of emotions going from extreme happiness to extreme sadness?
Do you stay steady?
Or somewhere in between?
Start to document how you’re feeling and when. Journaling is a great avenue for this. Once you can determine when your ups and downs happen; and what you were doing around that time, you can start adjusting. Then at the moment, take a step back and objectively say this is actually what is going on.
It’s not going to happen overnight. Like most things in life, it’s the slight edge, our continual habits overtime.
What you need to do now: Find out your money personality with this quiz, write down your wins for the day, and plan to start each day off with 10 things you are grateful for. Those 3 steps will put you on the path to mastering your money mindset and a life of happiness.