Your money mindset is how you think about money. Your thoughts about money are incredibly powerful and that’s why it’s so important to pay close attention to them, and to change them when they don’t help you accomplish your goals.The actions you take don’t just come from thin air—they originate from your thoughts. Having a poor mindset can be the reason you end up making all kinds of bad money moves like going deep into debt, not paying bills on time, dipping into retirement savings, and hanging on to losing investments, just to name a few.Financial problems creep up when you’re stuck in bad patterns of behaviors, like spending more than you make or falling prey to risky investments. Sometimes your money mindset cripples you the most when it causes you not to do something, like never getting around to saving for emergencies or creating a budget. So, be sure to choose your thoughts about money carefully and ditch the ideas or thoughts that are not aligned with your financial goals.Where does your money mindset come from?
Your thoughts turn into actions, so be sure to choose your thoughts carefully and quickly get rid of the ones that don’t serve you.
It’s easy to make money mistakes, but it can be tough to figure out why you make them—why you have a poor money mindset to begin with. Where mindset comes from is an interesting topic, because many people inherit their relationships with money from their parents or close relatives. How we relate to money on a psychological level begins to take shape early in life. For instance, if your family was affluent and always wanted to project an image of wealth with fancy cars or expensive brands, you might still believe that a materialistic lifestyle is important for your self-esteem, even if you can’t afford it.
Or perhaps your family was constantly fighting about how to spend money or pay the bills when you were young and impressionable. That could’ve caused you to subconsciously pick up a feeling that money is the reason for problems in life or that it’s a destructive force in relationships. Maybe someone even told you that “money doesn’t grow on trees” or “money is the root of all evil.”
I’ve seen these issues stop people from building wealth and to prevent talented folks from charging what they’re worth in business, for instance. These types of mental roadblocks are why it’s important to examine your mindset and consider whether your thought processes around money are the ones you really want, or whether they need to be reformed.