Your mind is a supreme biological device that works electronically and dictates everything you do. So basically, you are what your mindset is. A positive money mindset means a positive approach towards your financials. A negative money mindset corresponds to making negative financial decisions. This can therefore determine the way you live. One mindset will enable you to achieve your financial goals and the other won’t! Hence, it is ever important to develop a positive money mindset, so you can realize your financial dreams. It is vital to have the right foundation and attitude to successfully make money. To achieve a positive mindset about money first you should know what forms a money mindset.
What Forms Your Money Mindset?
It is actually the set of ideas and the thinking you have about money that shapes your money mindset. If you have the wrong notion about money, say you have the belief that rich people are greedy, you are more likely to never try to become rich. Your personal experience with money also matters a lot. Obviously, everyone has been brought up differently and fate hasn’t been very generous to all. Therefore, different people have different perspectives about money. The point is that the picture of money has already been drawn in your mind and so is the mindset regarding it! Some people are stuck with a scarcity mindset, some with an abundance mindset, and most lie somewhere in between!
The way you deal with your finances is the money mindset you have right now. It influences the way you think about debt, making money, giving charity, investments, etc. It’s the financial decisions you make, each day, that influence your overall life. The way you spend money will determine if you will be able to realize your financial goals or not. If you are making purchases that you essentially don’t need, you have the wrong mindset. You have all the freedom to spend the way you like, but at the same time, you should be able to contain your desires whenever you need to. In short, your money mindset is formed by the way you handle money – the way you spend, save, invest, etc.
What is A Positive Mindset About Money?
The concept of a positive money mindset has been defined in numerous ways. Basically, it is when you realize that ‘no financial problem is bulletproof’, you are said to have a positive money mindset. No matter if you are in a financial crisis and have a huge debt to pay off, have to send children to college, have to buy a new home, or if you are short on savings and are worried about retirement. Even if you are living paycheck to paycheck right now, are broke, or are in a desperate situation, a positive mindset about money will tell you, “It’ll get better”. Such a mindset will not only help you to make key financial decisions, but it will also impact your overall life.
You will accomplish only what is achievable in your mind. Your money mindset is what you think and desire about money. As explained earlier, the notion and feeling about the money you have are what dictates the money mindset you have. In turn, your mindset about money will determine the material success you can achieve in your life. It can turn your life, take you from the very bottom to the top by making you financially independent. Once your money mindset is shifted to positivity, it will benefit you a lot.
Merits of Having A Positive Money Mindset:
If you know where you want to go and positively think it’s attainable, then you will take small steps and little by little start realising your financial dreams. Taking small steps, especially when in a dire situation, is extremely important. This is because small steps add up to the progress you make. A positive money mindset will help you to refine your financial goals, framework the right attitude, and make it easier to accomplish them. It will drive you to handle setbacks and look through an opportunistic lens all the time. It will enable you to see room for development in misery. Financial problems can depress you and hinder the growth and development you are capable of attaining. A positive money mindset will make any financial problem seem solvable. So, it will save you from being consumed by depression, etc., and help you to continue looking for solutions and opportunities.
It will also make you realize that instead of struggling, you could ask for help. Friends and family can be of immense help in certain financial situations. So, if it is appropriate, you should ask for help. Some people have the wrong notion that a positive money mindset will make you ignore what’s wrong and only make you focus on opportunities for success. It is absolutely stupid to ignore the roadblocks you are facing in achieving your financial goals. The fact is that apart from enabling you to visualize opportunities, positive mindset about money will make you realize what is wrong and help you refine your financial goals accordingly. You don’t have to give up and adopt new financial goals, instead, you have to adapt yourself according to the different limitations you face in your quest for financial freedom.
Can You Impart A Positive Money Mindset Into Yourself?
Since you already have subconsciously developed a certain money mindset, the question that arises is, “Can you change it?” The short answer is YES! It is absolutely possible to develop a new money mindset. Do you know what’s common in all millionaires? They all believed that they could become millionaires! Most of the rich people in the world have earned their money, very few are inherently millionaires. It is very possible that you could become financially so successful, more than you even dreamt of! The key is to develop a positive money mindset and follow it consistently.
How To Develop A Positive Money Mindset?
1. Visualize And Set Your Financial Goals:
The first step towards the attainment of your financial goals is to dream and visualize them. If you know where you want to go, then you only have to figure out the way to reach there. Think deeply and jot down all your financial goals. There can be three kinds of financial goals that you may have. First, the ones that are achievable right now or require little effort to be realized. The second ones – those that may require some time and more effort. Thirdly, the long-term ones.
Note, all of them should be relevant and timely achievable. Further, the more meaningful they are to you, the more you will strive to achieve them. Though all three should be equally important for you, it is the long-term ones that you should be able to definitely realize. After setting your goals, figure out the time and effort it will take to achieve them. Then make a proper strategy that can help you achieve them timely.
2. Learn From Past Mistakes:
As you already have a certain type of money mindset, chances are you have made a lot of financial errors to date. To grow beyond the wrong assumptions that you may have, you must be willing to give them up. Therefore, it is seriously important to accept your faults and update your ideas. You should also observe and take lessons from the faults of other people. For example, think about the financial errors made by your parents. Where do you want to follow them and what don’t you want to follow? The answers will help you immensely to make your financial decisions, which will ultimately help you realize your goals.
3. Get Over Your Financial Mistakes:
After you realize the financial mistakes you have made to date, it is necessary that you forgive yourself and forget them. It is important because blaming yourself for things of the past can spoil a positive money mindset moving forward. You know the way life works. You cannot go back and erase the wrong you did. Mistakes happen and they are not that bad, because they give you experiences. The experience of yesterday can help you improve and make better decisions today and tomorrow. In fact, no one has ever become successful without failing at one point.
Many people who have made financial mistakes in the past, let these mistakes stop them from trying again. This is the wrong attitude and it only limits their ability to do-over their mistakes. You shouldn’t let the mistakes of the past stop you from committing to your future. Each and every error you make is a step towards success. So basically, when you realize that you have made a mistake, you have actually realized room for growth and betterment. So, forgive yourself for all the mistakes you have made to date and move on.
4. Know That You Are Different:
No two people are the same, or have the same money mindset affirmations. Different people even have different degrees of positive money mindset! You shouldn’t get stuck comparing yourself to others. If someone is making more progress faster than you, it shouldn’t be influencing you in a bad way. There is in fact positivity in that too. It should push you to put in more effort to realize your dreams.
All people are not necessarily competing in the same race. Some achieve their goals sooner, some may need to wait a bit more. But that doesn’t mean you don’t have to compare yourself at all! Instead of comparing yourself to people who are well beyond you, you should be comparing yourself to yourself! Ask yourself positive questions like: Where were you last year? How much have you improved financially? There is no shame even if you have not improved much. But it is important to improve consistently and steadily.
5. Keep Motivating Yourself:
Keeping yourself inspired and motivated is the fuel to your positive money mindset. Initially, you can rely on inspiring quotes, success stories, etc. But soon you will have to develop self-motivation to keep your big money mindset alive. The following ways can help you keep yourself motivated:
- Be confident that you are unique and no one in the world has the ability to do what you can achieve. You deserve to attain your financial goals. If you work for them, you will eventually, no matter what happens, realize each and every one of them.
- Befriend people who have a positive money mindset. By surrounding yourself with such people, you will realize that there are other people with similar beliefs and goals. This will push you whenever you might feel negative thoughts or have doubts about realizing your financial goals. Such peoples’ stories can also help you with your struggle. They can also share valuable ideas and notions with you.
- Stay away, or at least limit time spent with negative-minded people. You can either have a positive frame of mind or a negative one, you cannot have both at the same time! Negativity is also known to spread faster than positivity. Therefore, you should be careful about the company you keep.
- Reciting positive money mindset affirmations will also help you stay motivated and focused. There’s a lot of money that can be earned. There are literally millions of opportunities that can help you realize your financial goals. Don’t develop a scarcity mindset.
- Write down your feelings and thoughts in a journal. Write whatever you face and write the solutions you apply to solve these issues. This will help you to let go of the negativity from any errors you make.
6. Keep Yourself Educated About Money:
You cannot develop a positive money mindset unless you keep yourself well informed about money. Proper knowledge is an ever-important element of a big money mindset. You have to give your mind the chance to grow. It is information about money that will enable you to deal with your financial problems effectively. Even basic knowledge about money will help you to make better financial decisions. Some of the most efficient ways to keep you informed about money include:
- Visiting a financial blog post and reading at least one article a day can help you in this regard. Financial blog posts have abundant positive content about the money mindset. These will help you understand the basics of budgeting, spending, saving, investing, etc.
- Reading a money mindset book, especially if you like to read books, can help you enormously in increasing your knowledge and understanding about money. It will also keep your money mindset positive as authors write books so the reader is influenced positively.
- Following successful people through social media or any other source can also help you improve your knowledge about money. Such people often open up about the work they had to do to reach where they are now.
- Other people to look to for knowledge are the ones around you. Your family, friends, co-workers, and anyone around can be of immense help in this regard. They can share their personal experiences and possibly guide you to some extent.
7. Make And Follow A Budget:
Carefully draft a monthly budget that is both efficient and effective. Budgeting will help you immensely to realize your short-term financial goals. Making and following a monthly budget will make sure you spend wisely. It will keep you from spending where you shouldn’t. This will, in turn, enhance your positive money mindset. One effective rule of thumb is to make sure that your necessities are covered by 40-50% of your income, 20-30% can be used for travel or treating yourself, at least 20-30% should be saved. If you have a debt to pay, it is recommended to use the 20-30% of income for paying it off.
You are also advised to spend wisely! Though you don’t need to deprive yourself of the things you want, at the same time you should also be disciplined in your spending habits. That being said, it is always better to spend on things that will help you realize your financial goals rather than things to show off, etc. For example, the amount of money you would spend on something expensive, say for an iPhone, you could invest this sum of money and buy stocks of a company instead. Such a money mindset will surely help you gain financial freedom, at least in the long-term.
Final Words
All the hard work will pay off and you will eventually realize your financial goals. Remember, the first step towards this achievement is the belief that you can achieve it. Finally, one more attribute of a positive money mindset is to give – whatever you can and wherever possible. It will boost your morale and help you become better as a person. To end this, mere knowledge can’t help you in any way. These guidelines are to be implemented in your daily life if you want to reap the true benefit. Remember, those who are materially successful live a highly professional life – live by a set of rules that they never alter. They work hard and smart at the same time.
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