Your money mindset is our unique view and beliefs about money. It is your attitude towards money. Having the wrong mindset about money can have a significant impact on your ability to meet financial goals and save money for your future. Many people find themselves too scared to even think about their financial situation, feeling like they can’t save money. Here are a few ways to change your money mindset and be confident in your financial situation.
Stop comparing yourself to others
We compare everything we do to other people. It is so easy to find yourself comparing your financial situation to family, friends or colleagues. However, doing this leads to negative feelings of envy and unhappiness about your personal finances. When you compare your situation to others, you shift your money mindset. Instead of being appreciated for everything you have, you become insecure and unhappy about the thing you do not have.
Forget about your past
Most people are significantly impacted by the money mindset of their parents, even if they are not aware of it. For example, your parents may have talked negatively about money and their financial stresses when you were growing up. There is a high chance that you too will feel anxious and uncomfortable about your financial situation. Failures and negative experiences with money in the past also impact our mindset, as you believe it will happen again. But your past does not define your current situation or your future, so you need to start fresh and be confident with your finances.
Take the emotion out of it
Emotional spending happens when you buy something that you don’t need, or even want because you are feeling any number of emotions at the time. This is often when you feel stressed out or unhappy with your financial situation. A lot of people also spend when they are happy, making impulse purchases that they later regret. Be more conscious about your shopping habits and take the time to consider each purchase to avoid impulse buys and overspending. This will give you greater control over your finances, and make sure you genuinely enjoy the investments that you do make and the money you save in the long run.
By paying attention to your thoughts and behaviours around money, you will be able to make positive changes about your money mindset and start saving for your future. Your money mindset can be changed, and with little changes to your lifestyle and financial direction, you can create a more positive and confident relationship with money.