Develop A Positive Financial Mindset

In this Key Learning Area we explore the concept of a ‘financial mindset’ and the impact that your own unique ‘mindset’ can have on your ability to achieve financial goals.

The Power of Gratitude to Attract Abundance (NOW), Serene.Awareness (16.20 Mins)

What do we mean by a 'financial mindset'?

A ‘financial mindset’ refers to the set of values, attitudes and beliefs that one possesses in respect to money. Every individual has their own unique ‘mindset’ that is influenced by their upbringing, work and life experiences, culture, gender and other environmental factors. Even if you can’t verbally describe what your mindset is, it is still there influencing your financial decision making processes on a daily basis, albeit unconsciously.

Your ‘financial mindset’ may be negative or positive.

A negative ‘financial mindset’ will hold you back from achieving your financial goals, regardless of your financial knowledge, skills and behaviours, because it breeds emotions such as fear, defeatism and procrastination that prevent you from taking action. Examples of negative ‘financial mindsets’ include:

‘I’ll never be wealthy’
‘My parents were poor, so it follows that I will be poor too’
‘Money is the root of all evil’
‘I don’t deserve to have lovely things in my life’

On the other hand, a positive ‘financial mindset’ will help you achieve your financial goals because it nurtures more positive behaviours including: looking for opportunities vs roadblocks; recognising that every financial situation is fixible; seeing the value of asking someone for help, instead of struggling alone and in silence; and accepting that baby steps still add up to progress, even if it is slow. Examples of positive ‘financial mindsets’ include:

‘I deserve to live a financially abundant life’
‘I am responsible for my own financial’ future’
‘I can achieve whatever financial goals I set for myself’
‘I have the capability to solve any financial issues that come up in my life’

The good news is that whatever your current financial situation you can change your money mindset from negative to positive, just by deciding to do so, committing to the journey and trusting the process.

Reflection

If you are being honest with yourself, do you believe you are currently acting out of a negative or positive ‘financial mindset’? If the former, are you committed to adopting a new set of values and believe to create a more abundant life for yourself?

Tips for creating a positive 'financial mindset'

So you’ve decided that you want to be more financially successful and that to do so, you need to develop a positive ‘financial mindset’ and to commit yourself to the journey.

Below are some tips to help you along the way.

Explore your life values by asking yourself, WHY you want to be financially successful – to have more wealth and abundance in your life. For example, is it to pay off debt, be more financially independent, give to others in need and/or provide educational opportunities for your children? Asking WHY connects you with your true values and purpose, which in turn provides an ongoing source of motivation to stick to your new chosen path.
Forget about keeping up with ‘the Joneses’ and focus on what really matters to you. Having more and more possessions, does not necessarily bring more happiness into your life, particularly if they are not in alignment with your purpose. To the contrary, they can often lead to misery due to increased levels of debt.
Confront your fears head on. Increased levels of anxiety and fear are natural when you are embarking on something new. There is the fear of the unknown, the fear of change itself and the real ‘biggie’ – the fear of failure. These fears can stop you dead in your tracks before taking even the most baby of steps towards your new financial future, because they can be overwhelming and paralysing. The way to confront your fears is to forget about the ‘what ifs’ and keep your focus on the reasons ‘WHY’ you are embarking on your new journey.
Express gratitude for what you have on a daily basis. Research shows that choosing to be grateful and expressing that gratitude in tangible ways can improve your mental and physical health. In addition, if you are content with what you have in your life, however small that may at the beginning of your journey, you will feel less compelled to spend, spend, spend on superflous material items that add little real value to your life and only a fleeting sense of satisfaction, not to mention more debt! Keeping a Seven Day Gratitude Journal is just one practical way in which you can record the things you are grateful for each day.
Harness the power of positive financial affirmations. It is easy to let negative thoughts creep into your mindset, particularly if things aren’t going to plan. Using positive affirmations as part of your daily routine can help to banish these negative thoughts, and create a more positive mindset. Affirmations should always be positive and stated as if they are already happening i.e. in the present. Examples include:
‘Financial abundance is being realised in my life on a daily basis.’
‘I have enough money to meet all my needs and wants.’
‘My income has unlimited potential.’
‘I am leveraging all my knowledge and skills to create wealth.’
‘I am worthy of receiving all life’s abundance.’
‘I am relishing in the joy of saving more money.’
‘I am easily achieving my financial goals.’
Don’t dwell on past financial mistakes. At the end of the day, there is no point beating yourself up about past mistakes. What is done is done and there is no going back! It is time to look at the ‘windscreen wipers, not the rearview mirror’. It is time to reflect upon and learn from past mistakes so they are not repeated, then to focus on your new financial plan with passion, desire and unrelenting belief.
Surround yourself with like-minded souls. It is much easier to sustain a positive ‘financial mindset’ if you are surrounded by people with a similar set of values and beliefs. Naysayers are everywhere. They do not like change and will do everything they can to drag you back into negative thought patterns, so they don’t have to confront their own lack of financial abundance! They may also (wittingly or unwittingly) plant seeds of doubt in your mind, sabotage your efforts to move forward or heighten your levels of fear and anxiety. So the trick is to minimise their ability to impact on your life and replace them with positive people who support and contribute to your life’s purpose. Such people may be friends, family members or professional money coaches. Regardless, you will be more successful in achieving your financial goals, if you surround yourself with people with a positive ‘financial mindset’ who themselves are committed to their own journey of abundance.