How to Change Your Money Mindset

By Nan Nan Liu-Maffetone | Strong Female Leaders | Reading Time: Five Minutes
How to change your money mindset?
There are things in life that you cannot control, like bank rates, the economy and inflation. Your money mindset, however, is something that you can control. Money mindset refers to personal financial health, including how much you save, spend and invest. Having a healthy money mindset is the result of activities such as setting goals, planning for the future, and building wealth. If your money mindset doesn’t feel as healthy as you’d like it to be, then it’s time to take control. Like with everything else in life, you have the power to change course and put yourself on the path for success. Want to get started? Just scroll down.


1. Understand the money mindset.
Before diving in rigthaway, take time to truly understand the money mindset. Realize that it is not a get-rich-quick scheme or the misinterpretation that money trumps everything else. A money mindset is a unique attitude and narrative that guide your thoughts, beliefs and actions towards money. It creates a healthy relationship between you and money, and leads to practicing better financial habits. These financial habits include actively managing a fixed salary, creating a savings plan, living below your means, generating residual income, saving for retirement, learning about financial literacy, and investing for the long-term. It also extends beyond just balance sheets and assets, and can help you feel more confident, secure and excited about life.
If you feel unsure about how healthy your money mindset is, ask yourself the following questions:
  • Do you feel anxious and insecure or satisfied and motivated about your finances?
  • Do you have both short- and long-term financial goals, and a plan to achieve them?
  • Do you talk about finances with family and friends? If so, how do you compare to their financial situations?
  • The questions above are not directed to make you feel bad, but rather to assess your current relationship with money and gauge your confidence about your financial future. Your money mindset is formed from various life experiences and therefore unique to you. For example, if you grew up poor, you might have a completely different perspective on savings than people who grew up wealthy. You can also be impacted by the people in your inner circle. If your parents always stressed over money, you might be extra sensitive about talking about money.
    Knowing exactly where you stand with money provides a baseline to start with. Even if you have a poor relationship with money right now, you can at least begin to see it clearly and identify what improvements to make.
    2. Visualize your best self in the future.
    You will be successful if you give yourself the permission to get there. Often, people let go of their goals in life because they feel undeserving of success. That is not you. You are intelligent, hard-working, and deserve everything you work for. You are worthy of prosperity, and you will achieve it.
    Now, picture your future self in the best light possible. Finance-wise, where will you be in 5, 10, 20 and 30 years? How wealthy do you want to retire? What do you want to do when you retire? Travel the world? Consult? Teach? Start a business? Or spend time with grandchildren? Also, where will you live? In your current home that is all paid for by then? In an RV on a cross country drive? On an ocean-front condo with a private beach?
    However you see yourself in the future: attach a monthly budget and a savings amount to that lifestyle. Then, start saving up for it. And don't be afraid to adjust as you see fit.
    3. Become financially literate.
    Talking about money and bragging about it are two different things. You should never feel uneasy about talking about money, because if you do, then you might not feel comfortable having money. Your fear may be because of being financially illiterate. To get better, start by picking up a book like PERSNAL FINANCE QUICK START GUIDE or CLEVER GIRL FINANCE, even if it's just to familiarize yourself with the terminologies. You might also consider taking classes online, subscribing to YouTube and Podcasts focused on finance and investing, and seek professional help from a local advisor.
    The more you get used to something, the more comfortable you become speaking about and doing it. It all starts with education. The fancy jargons and academic concepts might feel intimidating at first, but don't let them scare you. Realize that you are just as sharp as the next person. Even the financial pros had to start somewhere.

    4. Ditch the scarcity mindset.
    Living with a scarcity mindset is like living in fear. You are always afraid of not having enough, and therefore focus on what you lack.
    So how do you jolt out of this negativity? One action you can take is mindful giving. Take a hard look at life and find what causes, organizations and people you want to contribute to, and commit to it. When you give generously and with intention, you turn scarcity into prosperity by showing confidence, security and fulfillment. You now have an abundance mindset that puts money in a frame of generosity, prosperity and wellness. This in turn sets you up for success.
    Money attracts money. The more habits of abundance you practice, the more you will receive.
    5. Have a growth mindset.
    Having a growth mindset means to focus on moving forward. It creates another way to get out of a scarcity mindset. It leads to taking action and building a better future instead of dwelling on the past. People with a growth mindset welcome problems and enjoy solving them. For example, instead of saying,"I don't make enough money," they ask,"how can I make more money?" Then, they take action. They would ask for a raise, look for a higher paying job, start a side hustle, or find other ways to get what they want.
    When you are busy creating new opportunities, you have little time to pay attention to what you don't have.
    Parting Thoughts
    Chances are you are not the only one who wants an improved money mindset. You are also not the only one who wants to make a change. While the money mindset influences your thoughts and attitude towards money, you have the power to control and channel it towards a more positive perspective. It's never too late to set goals, develop good habits and commit yourself to become financially successful. The process will take time, but the end result is worth it. So turn your "big girl" brain on and enjoy every step towards a wealthier and healthier life.
    1) Take charge of your finances now with Clever Girl Finance: Ditch debt, save money and build real wealth


    2) Become more financially literate with Personal Finance QuickStart Guide


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