The money mindset – your attitude toward and outlook on money – describes how you feel and act when it comes to money. You experience your money mindset whenever you think about money. Perhaps you recognize yourself in one of the following situations. You go out to eat, and as soon as you get the menu, you discreetly hunt for the cheapest item on it. Or maybe you don’t pay any attention at all to the prices and just order to your heart’s content. At the end of the evening, you’re sitting there with the check – and feeling frustrated, since you really wanted to save and spent far too much. Or you might be frustrated that you automatically went for the savings even though a more expensive meal was totally within budget. What the situations have in common is that you didn’t act with your financial goals in mind.
It’s totally fine to be frugal if you know what you’d rather spend your money on. You can cook at home on the cheap if it aligns with your plan! And if there’s still room in your budget for going out to eat, you can relax, order the expensive dish, and bring another friend along. You might be acting out of a sense of deficit because your money mindset tells you that money is just always tight. That would be a shame. It would make more sense to align your attitude toward money with your financial goals and to act accordingly.
The money mindset is the attitude your financial decisions are based on – every single day. You typically make financial decisions inactively and on an entirely subconscious level. This is because your outlook on money holds the reins in every financial decision. It makes all the decisions surrounding money for you. Hard to believe, but true.
How can you change your money mindset? Where do you start when changing old behavioral patterns that have influenced your financial life? The first step is to understand that you (just like everyone else, by the way) have been programmed, so to speak, in money matters and have adopted certain behavioral and thought patterns from your environment. And in just the same way that you took on these patterns, you can let them go. However, you have to go about it actively. Your money mindset is nobody’s responsibility but your own, and only you can change these convictions about money. It basically means overwriting the old files on your financial hard drive that tell you to seek out the cheapest item on the menu. You’re essentially reprogramming your money mindset in order to become the person you want to be when it comes to financial matters.
The following questions will help you better understand your current money mindset:
- Do you remember the earliest experiences you had with money as a kid? How did they make you feel? It is generally accepted that the experiences from the first seven years of life are particularly formative. Did you perhaps sense that money was a source of stress in your family? Did you maybe even feel responsible?
- How would you describe your relationship with money today? When you think about money, does it seem rather scarce, and do you often feel that you can’t afford something? Or do you look at money as a means to an end, knowing that the money you need will come to you somehow? Your answer indicates whether you have an abundance mindset or a deficit mindset. Dig deep inside and determine which has been true for you so far.
- You can change your money mindset – see above. What will help you with this is what’s known as reframing. With this technique, you put a subject inside a new frame, so to speak, with the result that it feels fundamentally different. The image of the frame can help you develop a new sentiment. You’ll learn more about the money mindset in Course 2.
- Do you actually get a feeling of gratitude when you think of money? If yes, what is it you are thankful for?
And we’re off!
The process of transforming your money mindset can begin once you realize that your feelings, decisions, and convictions about money are controlled by your subconscious mind. Analyze these feelings and thoughts, and then look at the complete picture of your financial situation. Then you can start setting the course toward making a change. It’s easier than you might think!