Changing your mindset might be the most important step to changing your financial situation. It’s definitely the first step, because changing your mindset will make the rest of the steps a lot easier. Here are 8 ways to change your money mindset:
1. Recognize your current money mindset.
What the heck is a money mindset anyway? It really just means the way you think about money and it’s role in your life.
I’ll be honest, I never really heard the term money mindset or thought about it until a couple years ago, but I’ve realized there are two types of mindsets you can have around money - either abundance or scarcity.
Scarcity is the most common, and it’s always been my mindset too without even knowing it. If you’re in debt or have trouble sticking to a budget, most likely you have a scarcity mindset too.
A scarcity mindset causes you to have thoughts like, “I just can’t stick to a budget”, “There’s never enough money”, and “I’ll never get out of debt”.
Once you realize you have a scarcity mindset though, you can work on changing it to an abundance mindset.
And no, this doesn’t mean you have to wait until you have a lot of money!
It just means you start thinking of money as something that keeps coming into your life and that there’s always more on the way. As opposed to thinking of money as something that just keeps leaving you, and that there’s never enough of it.
You can absolutely change your financial situation, but first you need to change your mindset.
2. Eliminate negative words from your vocabulary, like can’t and never.
Your thoughts and words become your reality. So if you mostly think or say negative things like “I’ll never be able to get out of debt” or “I just can’t stick to a budget”, then that’s exactly what will be true for you.
Instead, start saying things like “I’m ready to get out of debt”, “ I’ll make a budget and stick to it”.
3. Focus on abundance and gratitude.
Again, what you focus on is what your life becomes. If you focus on what is missing, you’ll always want more.
So remind yourself of everything you already have - family, friends, home, food, clean water, clothes, etc.
You’ll start to realize you already have everything you need, and your life will feel full instead of lacking.
4. Forgive your past mistakes.
If you continue to blame yourself for all your past mistakes with money, you’ll end up stuck there.
You’re human, just like the rest of us. We all make mistakes.
The important thing is that we learn from our mistakes and keep moving forward.
5. Realize that money is everywhere.
Money really is everywhere, but we usually don’t notice because we’re not looking for it.
If you start looking, you’ll find it.
You’ll notice coins, or maybe even bills in the street, as well as opportunities to make additional money in your free time.
You might even be able to think of something right now.
What is something you’re good at that you might be able to start helping people with for a fee? What is something people always ask your advice on? Maybe you can turn that into a freelance gig somehow.
The point is that once you start looking, you’ll finally start seeing new ways to make more money, or literally find it on the street.
6. Read books and articles about money.
This will do wonders for your money mindset. The more I learn about money, the more confident I feel in my ability to manage it well in my own life.
It doesn’t mean you need to become a financial expert. You’ll just naturally become more confident in your financial skills by reading about money and learning more over time.
7. Repeat a positive money mantra daily or whenever you need it.
If this sounds a little too woo woo for you, I hear you. I’ll admit, sometimes I feel a bit silly saying a mantra out loud to myself, but just give it a try.
I’ve started doing this recently and I think it really can help. Not immediately of course. Don’t expect to say a mantra once and have your life change instantly.
The way mantras work is by changing your thoughts over time. Remember, your thoughts become your reality. So you want to change your thoughts from a scarcity or negative mindset to a positive, abundant mindset.
Pick a mantra that reflects the mindset or reality you want to create for yourself and repeat it to yourself every day, or even multiple times a day.
And set a calendar notification on your phone to remind yourself to say it. Otherwise you’ll forget – let’s be honest. When I’m trying to develop a new habit, there’s no way it’s going to happen unless I get that notification on my phone!
8. Stop comparing yourself to others.
This is a big one! When you compare yourself to others, you start to feel like you need what they have, pulling you away from the abundance mindset and back into scarcity.
It can be pretty difficult to stop comparing though. I’m working on this one all the time.
Just try to stay clear on what’s most important to you, so you don’t get distracted by everyone else’s shiny toys.
If this is difficult, like it is for me, two things that can help are:
- Remind yourself of all the wonderful things you already have.
- Create a mantra to help you work through it.
If you need help creating a mantra, I created a free downloadable for you of some mantras you can try out. Each one is the size of a credit card, so you can print it out and put in your wallet, or you can type it in as a calendar reminder to pop up on your phone each day. Enter your name and email below to get the free PDF.
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