When it comes to your finances, it pays (literally) to have the right mindset. In fact, it pays to have the right mindset in any area of life. The one thing you need, more than anything else, to change your finances for the better is the right mindset. Your mindset makes all the difference. How you think about your money determines how you act with your money. How you think about your situation determines how you change (or don’t change) your situation. Keep reading as I dive into why mindset is so important for your finances…and your life!
Breaking Down “Mindset”
If you’re not familiar with the term “mindset”, or haven’t quite grasped what I’m really getting at, I want to make sure you walk away feeling confident about it. According to the dictionary, mindset is the established set of attitudes held by someone. Basically, their philosophy on life or any particular situation.
How you think and feel about things determines how you act with such things. For example, if you think eating a piece of cake will make you fat, you may not eat that piece of cake – if you don’t want to be fat. On the other hand, if you think eating a piece of cake will taste good, and you’re in the mood for a treat, you may eat that piece of cake.
My point is that how you think about things, whether those thoughts are accurate or not, will impact your actions. That’s why mindset is such a powerful force. The scary thing about it is that if you’re not aware of how you’re thinking (aka your mindset), you may be doing things that aren’t truly helping you long term. However, you wouldn’t know that until you become aware of your mindset.
It All Starts with Awareness
When acknowledging, and even changing, your mindset, it all starts with awareness. If you’re not privy to what you’re thinking, you won’t be able to recognize and change your patterns of behavior. You may be wondering, “how do I know what I’m thinking?” Well, you notice it! It’s actually pretty simple, once you think to do it!
Start asking yourself “what am I thinking?” throughout the day. Then, answer the question. You may be thinking you’re hungry, you’re tired, you want to buy something…the options are endless. The point is to start recognizing your thoughts. Once you recognize them, you can have insight into them, and eventually change them if you need to.
How to Start Changing Your Mindset
In order to change your mindset, you need to change your thoughts. In order to change your thoughts, you need to recognize them first. When you recognize your thoughts, you can dive deeper into if they need to be changed or not.
Here’s a great example – let’s say you have been wanting to work out for awhile now, but haven’t been able to get into the routine. You could never figure out why. Your plan is to wake up early and work out, but no luck. The next time you wake up, when your alarm goes off, pay attention to your thoughts. You’re probably thinking “I’m too tired to work out”, or “it’s too cold to get out of bed.” Now, you know what’s keeping you from working out in the mornings – sleepiness and temperature. You can go to bed an hour earlier, so you wake up feeling rested. Or, you can turn the heat up a degree or two, so you aren’t too cold getting out of bed.
Up until you recognize your thoughts, you don’t really know what’s stopping you from doing something you really want to. Also, you don’t know what’s contributing to you keeping bad habits. When you start to recognize your thoughts, you can start changing them. You can counter them. You can offer up alternative thoughts or solutions.
The same applies to your finances. If you are constantly thinking that you’re broke, you’ll never get ahead or you’ll die with debt, you’re going to keep doing the things you’ve always done. You’re not going to proactively change your situation. Change your mindset and you’ll change how you do things.
Obviously, like with any new habit, it’s easier said than done. However, you’ll get better over time. Here are a few recommendations I have that can help you start changing your mindset instantly:
- Listen to the Life Coach School podcast by Brooke Castillo (total game changer).
- Start writing daily affirmations. Affirmations are a list of things you want to be true about yourself. (i.e. “I always have what I need”).
- Work with a therapist or coach
- Start paying attention to your thoughts, by asking yourself “what am I thinking?”
This list will get you going, but it will be a conscious effort. It’s worth mastering, so don’t give up!
Because mindset is so important for your financial success, it’s the first module of the Money Management Mastery for Working Women program. This self-paced online course teaches you everything you need to know about mastering your money, including changing your mindset! Get started today!
If you do anything to change your finances, change your mindset! Start thinking about your money differently. Start approaching it from a place of abundance, as opposed to scarcity. You will start to see a huge difference in your quality of life! How would you rate your money mindset? What have you done to start thinking positively about your financial situation? Post a comment below to share!