If you are looking for more wealth in life, you may need to consider adjusting your money mindset. Changing your mindset can help you save more, be more financially literate, and allow you to make more money. If you are looking to transform your money mindset, keep reading!
What is a Money Mindset?
What is a money mindset? A money mindset is unique to each individual as it is your personal belief and attitude toward money. How you save, spend, donate, handle debt, invest, etc. are all factors that can affect and shape your money mindset. Some have a very healthy money mindset and others do not. If you are trying to understand your money mindset, ask yourself these questions:
- Do you allow yourself the freedom to spend?
- Before making a purchase, do you think through how it will affect your budget?
- Do you have the ability to say both yes and no to making a purchase?
- How often do you compare your money, budget, and spending to others?
- Do you set financial goals? Do you believe you can reach them?
- Have you met a financial goal?
As you begin to form an idea of what your money mindset is, remember you are influenced at a young age by many factors and attitudes toward money.
Why Should You Change Your Money Mindset?
Our mind is extremely powerful, so to change how you think about money you must address what you are doing, what you know, and what you’ve learned up until this point. If you have a narrow mindset, it is time to put the blame on yourself and open it up to new ideas and opportunities. Every day we are in control of the financial decisions that ultimately put us ahead or pull us behind.
How to Change Your Money Mindset
To shift your mindset, you must come to terms with where you are currently at. A healthy money mindset allows you to stay within the boundaries of your budget but also make those unnecessary splurges here and there. Yes, it is healthy to make those purchases but also have the ability to say no sometimes.
1. Educate yourself with positive influence.
Discuss saving and investing options with American State Bank to learn more about how you can grow healthy savings for later in life. Change up your summer reading for a finance-based or money mindset-based book to grow more positive habits.
2. Think about your mindset up until now.
Challenge yourself to break any bad habits and research positive solutions to change them. Rework your budget and spending habits up until now.
3. Brainstorm your goals and what you need to be successful.
Stating your goals and money dreams are crucial to reaching them. Create short and long term goals as well as what you need to change and implement to be successful in reaching them.
4. Do something positive with your money.
Think about doing something positive with your money, whether that be donating, investing, or adding a lump sum to an emergency fund, savings account, or retirement fund.
5. Tell yourself you CAN change your money mindset.
To change your money mindset, you must believe you can. Changing your habits and mindset take time, so be kind to yourself as you learn and possibly make mistakes.
Don’t give up on changing your money mindset because it is possible if you put in the effort to make a change. Your mindset’s health is wealth, so keep working on your habits to achieve your money goals!
