Money Mindset
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Want to know what separates those who succeed financially from those who fail? It’s easy: They have a money mentality.
Your life will develop in accordance with your beliefs about money, yourself, and the outside world. You have the ability to make choices every day that will either advance your financial situation or cause it to regress. You have the choice.
You may have heard me mention the Dave Ramsey financial principles, such as the need to create a monthly budget, live on less than you earn, and avoid taking on debt. But if you don’t think it’s feasible to live that way or if you’re not driven to live that way, none of that counts. Financial planning is something that so many people put off, as if they’ll just wake up one day and be able to retire. Perhaps they intend to treat money more seriously in the future. Or perhaps they believe that only “rich people” can succeed financially.
If it describes you, you must alter your perspective. Parents can’t force you to care. Your partner cannot force you to care. And despite my best efforts, I am unable to compel your attention. It’s up to you to alter your perspective. You can, which is wonderful news!
Now let’s gets into it.
What Is Money Mindset?
Your individual set of beliefs and way of thinking about money make up your money mindset. It influences the choices you make regarding how much money to save, spend, and handle.
Healthy financial thinkers have the following beliefs:
- I have the freedom to spend, but I can also tell myself no to a purchase.
- I enjoy helping others who are struggling by giving generously.
- I don’t have to compare myself to others.
- It’s possible to achieve my financial goals.
Your money mindset shapes the way you feel about debt, your attitude toward people who make more or less money than you, how easily you can give, your ability to invest with confidence, and more.
How Is Your Money Mindset Formed?
Many various elements, including the psychology of money itself, have an impact on your financial mindset. Naturally, your personal financial experiences will be quite important. Things include whether you worked a part-time job while in high school, whether you’ve been the recipient of kindness, or how freely your parents discussed money when you were a child.
Think about that last one for a moment. Now, everything that happens in your life is not your parents’ fault. (Read that again.) But more is caught than taught, so the way you saw your parents talk about money—or not talk about it—definitely influenced your attitude about money from an early age.
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You can better understand the basis for your money beliefs by reflecting on how money was handled in the home where you were raised. This can also assist you in resolving any financial arguments you may have with your partner if you’re married. Because of the likely vast differences between their experience and yours, you two are approaching the important (and occasionally emotive) subject of money from two distinct angles.
The Importance of Understanding Your Money Mindset
Henry Ford said, “Whether you believe you can do a thing or not, you are right.”
Get Rachel Cruze’s new book to learn why you handle money the way you do!
One of the most intriguing findings from a survey by Ramsey Solutions on more than 10,000 billionaires was that 97% of them thought they could, wait for it, become millionaires. They thought they had some influence over it. They believed they were in control of their destiny. And it was this mindset—not an inheritance, a fancy education, or affluent parents—that gave them the advantage they did.
This can be true for you as well. What you believe will drive your behavior, which will lead to positive results.
You unknowingly engage in this behavior in other contexts. Do you think it’s crucial for your marriage to make your partner feel special? or that you must work in order to pay your rent? Or that the best day of the week is “Pizza Fridays”?
Your actions will be consistent with those beliefs. That implies that you’ll probably text your spouse frequently during the day, arrive at work promptly, and make sure to buy pepperoni at the shop by Thursday.
How to Change Your Mindset About Money
I recall the moment I became aware of a change in perspective. My parents forced me to create my first checking account when I was fifteen, which required me to maintain a budget. This is not the time that I cultivated a positive attitude about money. Not at all! I honestly despised having to go down and plan out every last expense I might have a month in ahead. I detested having to occasionally stop myself from going shopping. (From an early age, spending money has essentially been my spiritual gift.)
However, I did come to the realization that I am very adept at directing my finances. I could still spend money on things I desired along the road if I could stay within the budget’s constraints. Then, after we had been married for a few years, my husband Winston and I went on a fantasy vacation to Miami. Winston informed me he had thought about every last aspect and didn’t want me to even consider the money. He wanted me to be at liberty to order any delights I desired and to shop as much as I pleased. Awe-inspiring, yes? He was urging me to play to my strengths, after all (praise hands emoji)!
But here’s what truly happened: I didn’t like not knowing where our money was going. Regarding my spending, I was by no means at ease. The only way I could completely enjoy my vacation was if I knew the spending cap, so I begged Winston to let me see it.
That’s when I discovered that, lo and behold, my attitude about money had totally altered after following a budget for years. Because I eventually discovered, through good financial habits, that having a budget doesn’t restrict my freedom but rather grants it to me.
Since no two people are wired in the same way, pushing oneself to create a monthly budget might not be enough to alter your perspective. (But you must still complete it! It is essential to your financial stability.)
Some of the most effective strategies to alter your perspective about money are as follows:
1. Read books that will influence your mind in a positive way.
Leadership speaker Charles Jones once said, “You’ll be the same person in a year as you are today except for the people you meet and the books you read.” If you want to give your brain the chance to change and grow, pick up a book. Here are some of my favorites in this space:
- The Total Money Makeover by Dave Ramsey
- Switch On Your Brain by Caroline Leaf
- Love Your Life, Not Theirs by yours truly
- The Power of Habit by Charles Duhigg
- The 7 Habits of Highly Effective People by Stephen R. Covey
2. Think about your life up until now and ask yourself:
- What did I hear and see about money growing up?
- What’s one thing my parents did with their money that I want to replicate?
- What’s one thing my parents did with their money that I want to do differently?
Write down your answers in a journal. What changes do you need to make?
3. Give away some money.
Giving is the most fun you can have with money. And it’s a proven way to change your money mindset too. It moves you on the spectrum from selfish to selfless. I know you might feel apprehensive at first, or maybe you’re not taking me seriously. Just try it! Commit to giving back some money to help a person or organization in need just once a week. If you don’t feel like a new person a month from now, message me on Instagram (@rachelcruze) and we’ll talk. Go on . . . I’ll wait.
4. Dream about your retirement.
Picture your life down the road in high definition and let that be your motivation as you plan for retirement today. My friend, bestselling author Chris Hogan, says, “If you can see your dream in every detail—if you can fix your eyes on it—then I know you can muster the effort you need to hit your numbers.”
By the way, if you’re still in debt or don’t have an emergency fund, having a vision for your retirement is still incredibly motivating. Take that dream and let it fuel your passion to get to a place where you can invest even faster!
5. Have the belief that success is possible for you.
No matter your race, religion, level of income—or, to quote some deep, philosophical lyrics from the Backstreet Boys, “I don’t care who you are, where you’re from, what you did . . . ”—you have the power to make your own success. Some people have bigger obstacles in their story than others, but simply believing is the first step. Your behavior will follow your beliefs, making it easier to stick to good habits. And over time, your entire perspective will change for the better.
You CAN Change Your Money Mindset
Okay, you guys. This mindset stuff isn’t just pie in the sky—it’s biblical. Galatians 6:7 (NIV) says, “A man reaps what he sows.” As Earl Nightingale says in The Strangest Secret, “We become what we think about.” That’s exactly why changing your mindset about money actually has the power to change the trajectory of your life.
So that nothing and no one can stand in your way, I want you to be so motivated. Then, I want you to concentrate on the variables under your control. These are the behaviors that will enable you to pay off debt and accumulate riches so that you don’t give up.
If you want to make good money habits stick, check out this brand-new book, Know Yourself, Know Your Money. This book digs in and find out exactly where your money mindset came from so you can learn how to make lasting change with your money. You can become the person who believes you can win—and once you believe you’ll win, you will.
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Source : Rachel Cruze
Editor: Olagraphicsacademy
Great job 👍
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