In this post, we share 5 simple tips for you to apply today that will help you change your money mindset. Your own money mindset can affect your relationship with money. It can also affect your quality of life. But it is possible to change your money mindset.
Review your money history
Your financial past can be a great tool in helping you understand your current financial situation and help you set goals for the future. If you’re struggling to pay off debt or save for retirement, it’s likely because of habits formed over time — maybe even decades ago!
Write down all the positive things about your past spending habits and how you handled money. Think about what you did right and how those things worked out for you — or didn’t work out for you if something was wrong with the way you handled finances at that time.
Define your ideal money mindset
When you think about money, what do you feel? Excited, energized, happy? Or maybe stressed, anxious or depressed. Your feelings about money are determined by your money mindset, which is made up of the beliefs and habits that influence how you think and feel about money.
Your money mindset can be positive or negative, but it’s not permanent: You can change your money mindset if it’s not serving you well. In fact, many people who have experienced financial setbacks have been able to use their experiences to redefine what they value most in life — and this has helped them rebuild their financial lives in a way that’s better suited to their new priorities.
Create a one-sentence statement that encapsulates your desired money mindset & repeat it frequently
“I am a powerful, successful woman who deserves the best.”
You may think this is too simple, but it’s not. If you say it enough times, it will become your reality. I have been saying this to myself for the last year and it has helped me to grow into a confident woman with a healthy relationship with money and keeps bring me more and more opportunities. The key is consistency and repetition.
If you want to create a healthy money mindset, repeat these statements often. Write them down on sticky notes and post them around your house or bedroom so you see them every day. Post them on social media or share them with friends so they can support you in achieving your goals.
Don’t worry if at first you feel like these statements are false — that’s normal! But if you keep repeating them, eventually they will become true for you because they reflect your inner belief system about money and success. This is how you change your money mindset!
Build a self-care routine around finances
The first step to building a self-care routine is to know what you’re working with.
The first thing you need to know is how much money you have coming in every month. The second thing is how much money is going out. If you don’t know where your money is going, start keeping track of it by creating a budget and tracking your spending for at least one month.
Once you’ve got that information, it’s time to start building a self-care routine around finances. Here are some things you can do:
Set up automatic savings accounts with an amount that feels comfortable for you every month and make sure they go into separate accounts so you can’t accidentally spend them on something else. Set up automatic contributions to retirement accounts like Roth IRA or SEP IRA if those are options for you — or just contribute as much as possible each month directly from your paycheck into one of those accounts.
Track your spending and look for areas where money can be saved so that it goes toward something fun instead of paying off debt or adding to a savings account (or both!).
Learn the language of money and learn to speak, write, and read it fluently
If you want to be able to talk about money, learn what it means, and make good decisions with your money, then learning basic financial terms is a great place to start.
Here is an example of one of the most common financial terms that is used in everyday conversation:
Annual percentage rate (APR): The APR is the cost of borrowing money, expressed as a yearly rate. It includes all costs associated with borrowing the money plus any additional fees or interest rates charged by the lender or credit card company. APR can vary depending on whether it’s a cash advance or balance transfer card, as well as other factors such as whether you make purchases with your credit card and how long you carry a balance on your card. If the APR seems high when compared to other cards issued by the same bank, try another issuer before applying for one with a higher rate than what is advertised by other banks.
Final Thoughts on Your Path to Change YouR Money Mindset
If you’re looking to change your money mindset, I want to encourage you to just start small. Don’t try to tackle everything at once; pick one or two areas that you think may be the easiest for you, or least daunting. The point is, take time to look at yourself honestly and ask some honest questions. Is there an area in which you need improvement? What do you believe about money? What do your actions say about those beliefs? And most importantly, what needs to change for the better? You can change your money mindset!