How to Shift to a Positive Money Mindset

You may think that your financial well-being is only based on the number in your bank account or the salary you are being paid. But did you know that your mindset can have a major impact on your finances? Cultivating a positive money mindset sets the stage for a life of financial stability, less stress and much greater overall life satisfaction.

In this post, we will explore the simple changes you can make to shift to a positive money mindset and how it will impact not only your financial decisions but also your overall outlook on life. As with anything, it is difficult to change your mindset. But if you start with an open mind, slowly building a positive mindset towards your finances will greatly improve your life and will be well worth the effort.

What is a Money Mindset?

Your money mindset encompasses all of your attitudes, beliefs, and thoughts about money. It’s the lens through which you view every financial situation and make all of your money-based decisions.

You may not think that you have many opinions on money, but you would be surprised how much you would have picked up over the years. Your parents, your education and even your first job can have a major impact on how you view money. Even hearing clichés such as “money doesn’t grow on trees” would have helped to shape your money mindset.

Understanding your money mindset is the key to transforming your relationship with money and finally having a more positive attitude towards your finances.

Most people fall into one of two categories when it comes to money mindsets. We will now discuss both the scarcity and abundance mindset to see which one you identify most with. Don’t worry if you feel like you have parts of both mindset, this is very normal and you will still be able to use the tips we will share to shift to a more positive money mindset.

Scarcity Mindset vs Abundance Mindset

A scarcity mindset is when you constantly believe that there is not enough of something. That can be that there is not enough time, not enough opportunities or in our case not enough money. This mindset is often thought of as the glass half empty. You believe that you never have enough money and that you will never be able to earn “enough”.

While a scarcity mindset focuses on the limitations of your money, an abundance mindset embraces the idea that there is always enough and to spare. If you have an abundance mindset then you believe that there is plenty of resources, money and time for everyone in the world. Meaning you have more than enough money to achieve your goals.

The abundance mindset allows you to live life without being afraid of being limited. Of course, you may not always have the money to buy your dream house, but with an abundance mindset, you believe that you have the capability and opportunity to be able to save up for it.

Shifting from a scarcity to abundance mindset can be incredibly transformative for your finances, as well as your personal journey through life.

Now, we will discuss some tips and tricks you can implement to shift to a more positive, abundant, money mindset.

Understanding Your Current Beliefs

To start shifting to a more positive money mindset, you must first understand your current mindset and discover where your limiting beliefs may have come from.

The majority of our negative money beliefs will often stem from our childhood experiences as well as more current societal influences. For example, if you knew that money was tight growing up, then you would have picked up on your parents stress. This would have made you always stress about money, even if you don’t need to anymore.

Childhood experiences like this would contribute heavily to a scarcity mindset.

You may have also developed a scarcity mindset as a result of social media. If you are being bombarded by influencers who always have the latest gadgets and are constantly on 5 star holidays, then this could make you feel like you never have enough money and that everyone else is “ahead” of you.

This is one of the many reasons that social media can be damaging. It simply is not real. I guarantee you that you are not “behind” everyone else. Those influencers show you the best of the best and mostly, do not show any of their struggles. They make up a very small minority which then makes you believe that everyone has much more money than you.

Take 5 minutes to sit with a pen and paper and write down all of your beliefs about money and where you think they come from. Understanding the connection between your past experiences and your current money mindset is crucial for you to be able to let go of your limiting ideas and adopt a more positive money mindset.

Let Go of Your Money Past

Now you know what money beliefs you have and where they come form, it is time for you to let them go. Clearly, that is easier said than done. But given time, you should aim to rid yourself of your limiting beliefs. Knowing where they came from in the last tip should give you a great starting point.

You also need to let go of and forgive yourself for any past money mistakes. Maybe you made a large purchase you regret, or maybe you didn’t set aside enough savings when money was flowing more freely to you. One major money mistake you may regret is getting into debt.

Although all of these things can heavily impact your financial journey, you should not spend time regretting them. Regret wastes energy and will only keep you in a negative frame of mind. Because of these mistakes you may even believe that you are bad with money.

Squash this belief right now! No-one is “bad” with money. You are just at the beginning of your financial education.

Forgive yourself for any past mistakes and understand that mistakes are all part of the learning process.

Set Long-Term Financial Goals

Setting clear and achievable financial goals is essential for building a positive money mindset. It is the first step that says “I’m looking forward to my financial future”. Once you have let go of your money past then you are finally free to look to the future with optimism.

Having something to aim for will always provide great motivation. So it is time to set some long-term financial goals. Whether that is saving for a house deposit or even preparing for retirement, these goals will help you so much when you are having financial doubts.

These goals may seem out of reach, especially at the beginning, but it is only once you have set real goals that you will take actionable steps towards achieving them.

Working towards and eventually achieving these milestones will not only bring financial rewards but will also boosts your confidence and reinforces a positive money mindset.

Be Grateful for What You Have

Gratitude is a powerful tool for fostering an abundant mindset. According to the law of attraction, appreciating what you have will help you open the door to attract more opportunities and wealth into your life.

Practicing gratitude is a great exercise in all parts of life as it can help to boost your mood and increase your overall happiness. Being grateful for what you have financially can help you become less materialistic and can help you focus on how much you have as opposed to what you don’t.

If you have a roof over your head and can afford three meals per day then you are already much better off than many millions of people. I know we all still have many problems to face but sometimes it takes a little perspective to see just how lucky we are.

Realising how much you have is a massive step towards building an abundance mindset.

Learn to Love Money

If money is a taboo, then loving money is practically a social sin.

Which is ridiculous!

Money isn’t a bad thing! You have earned it! You should be proud and should be able to say that you like having money. But in society, saying you like money sounds very selfish and materialistic.

Although money can’t buy happiness, it can provide freedom. So loving it is only natural and shouldn’t be something to be ashamed of. Allow yourself to love money and you will soon develop a much more positive money mindset.

I would also encourage you to take an interest in money for your financial education. Financial literacy is key to building a great relationship with money. So, no matter how old you are or at what stage of life you are in, try to be open to enriching your financial education with books, blogs and podcasts.

There are some great resources out there you just have to be willing to invest time in your financial education. The more you learn, the better your mindset will become.

Conclusion

Cultivating a positive money mindset is a long journey that goes far beyond budgeting and salaries. It’s about embracing abundance, challenging limiting beliefs, and setting intimidating yet empowering goals.

Remember, this journey is ongoing, and although it can be challenging, every step you take will have a major impact on your financial well-being and overall happiness.

I encourage you to share your thoughts and tips for reaching and maintaining a positive money mindset in the comments section below. Let’s create a supportive community where we can learn from each other and grow together on this journey towards a healthy financial mindset. Join the conversation now!