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If you’re like most people you may find yourselves living paycheck to paycheck or “struggling” to get by every once in a while. This is unfortunately very common. With the cost of living always going up and the income remaining the same, it’s easy to fall into a financial rut and get stuck in a money mindset that says this is the best it’s going to get.
Truth is, that financial mindset is a big fat lie.
You CAN do better. You CAN get out of the financial rut you find yourself stuck in and you CAN create a better life!
The biggest way to get out and find financial success is by changing your mindset about money.
What is a money mindset?
A money mindset is an attitude in your brain that determines how you respond to money and how you manage your money, usually tied to or triggered by emotions. There are two major types, a scarcity mindset, and an abundance mindset, we’re just going to be focusing on these two.
A scarcity mindset is when you always feel like you never have enough money. You could feel hopeless or even be afraid to touch or use any money that you do have because you’re afraid you won’t have enough for something else.
An abundance mindset is one where you always feel confident in the amount of money you have. You know everything will work out as you remain optimistic and never feel like you don’t have enough money. You keep in mind all of the favorable outcomes and know that you can always meet your financial goals.
Obviously, if you had to choose between the two money mindsets the latter of the two sounds better, right? So if you could shift from scarcity to abundance, why wouldn’t you?
More reasons to want an abundance mindset
- You know and understand that there is plenty for everyone.
- Plenty of money, happiness, opportunities and more. You don’t fear the inability to find a job because you know there are a ton of jobs and side hustles out there. You know that we all have it in us to make a lot of money.
- You’re optimistic and hopeful.
- You’re always looking for the brighter side of things and confidently know that things will work out in the end.
- You know that the past doesn’t define you.
- No matter where you came from or what happened to you in your past, it does not define your current or future situations in life.
- An abundance mindset also understands that money isn’t the root of all evil.
- While yes, there are a lot of bad things money can (and does) do, there is also a lot of good that comes from money too. Focus on all of the good that you can do when you are in a better financial spot and then let that drive you towards success.
The biggest thing that you can pull from an abundance mindset is to stop underestimating your self-worth and to think of yourself as someone that deserves success and an abundance of money.
While women (especially SAHMs) undervalue their worth, men can fit into this category too. Even if you don’t feel like you contribute much, you’re still contributing something and you are no doubt more valuable than you may realize.
Why shifting your mindset can make a big difference
Just like your physical money needs a direction to go, your mindset about finances does too.
If you’re a frugal person or simply good at managing your money then you probably have a budget already. Having an everyday budget for your bills and expenses and a grocery budget in place for food is a great step towards financial success.
These are both two different ways that you take control of your money. You tell it where to go and what to do, you are the boss of it, not the other way around.
Having this controlling mindset already gives you a little leg up on the money mindset shift and puts you a little further towards reaching your financial goals.
You may have heard the phrase, “you attract more flies with honey” or something similar about how when you put out a good attitude, good things happen to you. While some people seem to have all of the luck, the reality is that they’re putting out a more positive vibe that attracts the good things back to them.
If you want to attract money and be financially successful, you’ll never get there by thinking you don’t have enough funds, or it’s a waste of time. Hustling hard and changing your money mindset are two large parts of attracting the wealth and the lifestyle you are seeking.
How to change your mindset about money
The theory of changing your mindset sounds easy enough, but putting it into practice can be rather difficult. Luckily, I’ve got a great list of suggestions you can use to shift your money mindset to the proper positive attitude.
1 Cut your emotional spending
It’s no secret that money is linked to emotions. Research shows that people spend more wisely when they shop with cash vs card because there is an emotional tie to the spending but even more than that are those of us who shop as an emotional outlet. [Source]
I can’t be the only one filling up virtual shopping carts online when I’m sad or feeling bored, right?
Emotions are what drive so many of us in our lives and with money representing power, it’s no wonder that so many of us turn to emotional spending as a sense of relief and to help us feel better.
Unfortunately, this isn’t the best financial mindset to have and should be something that we stop doing. When you realize that you fit into this category and that you use the money to help your emotional state, start proactively working towards stopping it.
2 Don’t compare your finances to others
My husband is always telling our 6 year old to stop looking in her little brother’s bowl to see if he has more and to simply make sure that he has enough.
As a parent, you know your kids fight over the biggest portion of the sandwich or that they’ll point out if something is “fair” or “unfair.” They have that “gift.” But as adults, we need to stop comparing ourselves to make sure it’s fair, and simply be happy with what we have.
Many people refuse to talk about finances with others because it’s such a personal topic or considered taboo to talk to your coworker about how much money you make. It can create jealousy, despair, envy, and drive people crazy.
Don’t think of the new cars others are driving or the fancy vacations they’re funding. Don’t think about the financial situation of others in comparison to your own. Simply think of your own and how you want it to become for your own sake, not theirs.
To change your money mindset you’ll want to be appreciative of what you have and stop being insecure about what you don’t have.
3 Change the money script in your mind
How many times do you go shopping for new clothes and love the item until you see the price tag and you put it back? You tell yourself “I’ll never be able to afford that” or some other negative speech about why you shouldn’t get it.
Money scripts are the small speeches you tell yourself in your mind about money. When you tell yourself something negative like “I’ll never be able to afford that” or that you’ll never make as much money as someone else, you’re telling yourself a negative script. This also gives you a negative money mindset.
Think of these scripts as a roadblock or a brick wall in your path to financial success.
Every time you tell yourself a negative script you have now paused your success and have to get around this obstacle that you’ve placed in your own path. As you can see, negative scripts can be disastrous, because they’re like self-sabotage.
When you give yourself a negative script, identify it immediately and correct it to a positive one.
This can change your mindset for the better and give you a better more positive financial mindset that helps to attract a better financial life.
4 Fake it until you make it
You won’t make yourself go from one extreme to another overnight, but mindset changing if a lifestyle change that takes time and perseverance. You don’t gain 10 pounds overnight and expect to lose it after eating a single salad, right? Be patient.
While you’re patiently waiting, fake it. You don’t need to tell people lies about your life or go to any extremes to impress others, but simply pretending to be optimistic and seeing the brighter side of things can do wonders for your mind shift.
“Fake it till you make it” is one of those famous English proverbs or quotes which basically suggests that you imitate and pretend to have an optimistic and confident mindset. The theory is that through the practice of pretending, you’ll start to gain a better understanding of how this mindset is achieved and begin to do it naturally.
5 Create a vision board if needed
For many people, myself included, having a visual aid helps to keep you motivated. Some people choose to have a bulletin board full of post-it notes, pictures, debt pay off coloring charts, print off money saving challenges, and more.
I’m a little nerdier and organized with my financial goals and keep them all inside of a Google Doc spreadsheet. If I had wall space, I’d no doubt get colorful and creative with it all but I like my neat and tidy goals kept where the kids can’t color on them with a crayon or marker.
What I’m trying to say is that whatever motivational style works best for you, try it. If it helps to have photos plastered on your wall or reminders set on your phone, go ahead and try it.
6 Live a minimalistic lifestyle
People who live a minimalist lifestyle are generally happier because they are surrounded by things that they love. Frugality comes from a minimalist lifestyle.
When you live more minimally you stop impulsively shopping for things that you don’t need, you stop buying things to impress others, and you downsize your possessions so that your home and life and less cluttered and more open and organized.
By embracing a minimalistic lifestyle you can change your financial mindset and get a refreshed and more positive view on life.
7 Set huge goals
Having something to work for can be really motivating. The hardest part of this is to make sure that it is, in fact, a goal and not just a dream. The difference between a dream and a goal is that you simply wish for a dream to happen, but you work hard to make a goal happen.
Goals have steps to follow through to get from point A to point B.
You can think of it similarly to a New Years Resolution. You set a goal at the beginning of the year and steps to get to where you want to be by that time next year.
Set yourself goals for this week, this month, this year, 5 years from now, 10 years from now, and so on. This can be done more easily by figuring out what your biggest goal is, and break it down into smaller goals between here and then.
If it helps, you can add your big goals to your vision board so that you can be reminded of them every time you look at it.
8 Create and maintain those good habits
Make room in your budget for happiness.
As much as I will stress the importance of paying your bills if there are a few dollars per month that you can spend without missing a bill payment, try to get yourself a small treat.
If possible, set up a small “fun money” account for yourself (and your spouse) so that you can each get a small treat while being financially responsible. This keeps you sane, happy and maintaining good money mindsets.
Be thankful and practice gratitude.
Practicing Gratitude- I’ve learned its easier to accept a gift with a simple thank you than to give a big reason why you don’t want it. If someone wants to offer you a free meal, or $20 just because (and there are no tied strings attached) say thank you and move on. Sometimes people just want to be nice, and giving a smile and thank you makes the other person feel good.
While this is one important way to be grateful, you should also be grateful for everything you have and are given.
Being Thankful- While you may not have a big luxurious house or a fancy new car, feel thankful for what you do have. Enjoy that you are doing as well off as you already are (some people aren’t even that lucky). Even if times are tough and you’re struggling to get by, you’ve already survived all of your worst days. Always look for the positives.
By changing your current lifestyle and doing any of these suggested tips, you can see drastic changes in your life, mind, and finances. Changing your money mindset may not be easy, but it is beneficial in making a positive lifestyle change.
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