money mindset

What’s your money mindset?

How your attitudes around money shape your financial success. Here's how to tap into it to change behaviours.

1924 0

It doesn’t matter whether you earn $30,000 a year or $300,000-plus, without the right money mindset, it is impossible to build your wealth.

This mindset often works at a subconscious level. It can cause you to make poor spending choices: buying shoes you don’t need or booking holidays you can’t afford.

Your money intelligence mindset creates habits that are hard to break – but they can be broken.

Here are the three steps to creating a positive mindset so you can save money now:

1. Confront your weaknesses

Do you have a penchant for designer clothes, weekends away or expensive wine? Identifying your addictions allows you to control them.

Write down all the purchases you have made in the past week. Look at each purchase and ask yourself honestly – was it a necessary expense or the result of bad habits and weaknesses?

A one-off indulgence doesn’t make much difference. But if it happens over and over, it can take huge chunks out of your wealth.

2. Challenge your money beliefs

Your money beliefs significantly impact your financial decisions – and your future.

Ask yourself; do you hold any of these money attitudes and beliefs? How do they impact your day-to- day decisions and your ability to grow your wealth?

Common money attitudes include the following – do any ring a bell?

  • Money is the root of all evil.
  • Money makes life easy.
  • Money gets you all that you desire.
  • Those who make too much money are greedy.
  • Those who don’t have money are lazy.
  • It’s wise to save money regularly.
  • It’s important to budget for household expenses and holidays.
  • I pay my taxes so when I get old, the government owes me.
  • The more money I make, the better my lifestyle.
  • I listen to money management advice from experts.
  • I know how much money I need for retirement.

It can be confronting to uncover your money beliefs. You may be surprised at how limiting your assumptions are. But now you are aware of them, you can see what you need to change.

3. Change your values

This is vital to creating a positive money intelligence mindset and achieving financial success. An enlightened money intelligence mindset is based on seven key values. These are:

– Determination: How determined are you to reach your financial goals? Your financial future requires thought and planning every day, not just once a year.

– Resilience: Do you crack under pressure? When the going gets tough, it’s important to never give up.

– Responsibility: If you fail to take responsibility for your decisions, nothing will change.

– Self-belief: You are worthy of abundance. You have the power to make real, positive changes in your life.

– Courage: It takes guts to confront long-held money beliefs and habits. It’s OK to feel uncertain, so long as you can re-group and move forward.

– Trust: Believe in your abilities. You have what it takes to transform your consumerist mindset to a Money Intelligent one.

– Collaboration: Establish partnerships (with your partner, friends, and financial adviser) that allow everyone to work to their individual strengths to create win-win solutions.

With a stronger mindset on your money, you can really influence your behaviour and be well on your way to achieving financial success.

Subscribe to Financy®

Get your Financy fortnightly fix with Financy Rewards, content and more. Plus each quarter you'll receive the latest Financy Women's Index, helping you keep pace with women's financial progress.

In this article