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Ever wondered why that lottery ticket winner went broke ? Want to know what makes that employee live paycheck to paycheck and another live financially free ? ever wondered ways to improve your money mindset? It all starts with their mindset.
A mindset about money is your perception, operation and manifestation of your finances. It is what drives your decision about making money, keeping money, multiplying money and handling money.
Your mindset about money is influenced by: the books you read, the people you hang out with, personal experiences. Other complex factors contribute to how you perceive and use money. People with a poor money mindset believe that:
- More money will make them wealthy
- People who don’t work for money got lucky. It is true that risk, luck and hard work play a role in any success narrative. The people who work hard and smart are most likely to attract luck.
- Spend more than they earn.
- Money is the goal not the tool
- Gambling can make them rich
- Wealth is measured by how much they make.
Importance Of Money Mindset
You can be a seven figure earner and still struggle with seven figure debt, no savings, no second income stream, no assets, no goal for financial freedom. Though complex factors play a role in our financial life. One factor that is always consistent is our mindset towards money.
The right mindset towards money can help anyone spot opportunities, make money legally, save money, invest, make quality money decisions, increase wealth and money regardless of how much they earn.
5 Characteristics Of A Positive Money Mindset
When you express these qualities, you know you have a healthy money mindset:
- Understanding that money is a tool not the goal
- You See abundance where others see scarcity; you know the difference between scarcity vs abundance mind
- Giving more than you receive
- Commitment to accomplish your financial goals
- Giving gratitude instead of pouring out complains
Below, you’ll find the top five ways to improve your mindset about money:
Top Five Ways to Improve Your Money Mindset
Forgive Your Past
Forgiveness is vital to shaping your mindset, it allows you to let go of that feeling of anger, guilt, shame, sadness, or any other feeling you’re probably experiencing and move on. Give yourself permission to recognize and accept your past regardless of how badly it may appear.
Look at it this way; if you had $365 in your bank account and you wasted $10. Would you be upset and throw away the remaining amount of $355 ? Don’t let your past financial errors ruin your entire life.
Be thankful for at least a chance to rewrite the pages of your financial story. 365 days with a mindset shift about money can skyrocket your financial status regardless of how much you earn.
Get a journal or notepad, jog your brain and write down your financial flaws. Forgive yourself and learn from your mistakes, no one started as an expert in handling money.
Install Good Habits
Habits start with small daily steps. You start the journey by unlearning your old money habits to install new habits.
Introduce the new habits to your daily or monthly routine to improve your money mindset. Stick through until it becomes a routine and normal way of being.
Highlight the money habits to integrate into your life. Be sure to set realistic and achievable goals. Also, reward yourself when you crush your goals.
Read Financial Books
There’s tons of financial books out there to shape your mindset. The questions you’re asking about saving, investing, debts, reading financial statements, protecting your money e.t.c Books on finance have the answers.
You can borrow or buy. It doesn’t matter how you get them. Just read, the more you read and implement, the smarter you become and the better money decision you make.
The goal is to continuously accumulate as much information as possible, improve and install an abundant mind. Never stop learning if you want to continue growing.
Reading isn’t enough, implementation is how you truly learn. Consistency is the key to mastery. Read, implement and gain mastery. Your growth is guaranteed.
Craft An Affirmation
Affirmation is a written statement that is spoken frequently and repeatedly with the aim of bringing it to existence. A good affirmation should have three or four of these criteria: WHAT – the result you desire to accomplish. WHY – why you desire the results you want to achieve. HOW – how you can actually get the desired result. WHEN – the time frame required to take actions .
It simply creates clarity to your mind about everything that needs to be done to bring your desired outcome to existence because words need a back up to manifest- Action
Here’s a sample of a good affirmation that can produce results. I’m 100% committed to “improving my mindset about money” -What. So that I can secure my financial future – Why. To ensure that I’m improving my mindset about money, “I’m 100% committed to forgiving my past ” – How
Another affirmation:
I refuse to continue living paycheck to paycheck- What. Because I deserve to be financially free – Why. Every day, -when.
I’m going to take responsibility by learning relevant and necessary skills to escape the rat race- How
Make it a daily routine to recite your affirmation. Constantly update and evolve your affirmations.
Create A Plan For Your Money
A financial budget can help you pay off debts, track and plan your spending, cash flow, and savings. Overall, a plan improves your money mindset and the understanding of your boundaries while still allowing yourself the freedom to treat yourself from time to time.
A good rule of thumb is to put 50% of your monthly income towards needs: Food, house, transport, debts.
Put 40% towards Investment: stock, side hustle, books, rental, properties, courses, crypto. Put 10% towards want: restaurant, vacation, gadgets, entertainment.
This pattern may not suit you. Create a money plan based on your monthly income, needs, wants, and other factors to better manage your finances.
Conclusion and Recommendations
The law of attraction tells us that we create our reality with our thoughts. This is absolutely true. Have you been thinking of someone and a few minutes later you receive a call from that person. I guess yes. You see, the mind is a powerful place and your thoughts can affect you in a powerful way, which is why it is very crucial to have an abundant mind to attract financial abundance in reality.
The 33% rule should be considered as well. People you hang out with play a part in framing your mindset. Spend 33% of your time with people below you. These are the people you can assist in your own way and you’ll feel good about yourself.
Spend 33% of your time with people at your level concerned about mindset growth. These are most likely your friends and circle of influence.
Spend 33% of your time with people years ahead of you. They will make you feel uncomfortable but that’s how you will grow.
Spend 1% of your time with yourself to recharge, reflect, journal and work on yourself.
Practice the 33% rule if need be. It’s not restricting your circle, it’s about deciding you love the future you.
In the end, the person you’ll become starts with the mind. Mindset drives your thoughts, thoughts lead to choices, choices lead to results, results manifest your reality.