Updated: Feb 3
If you don’t know by now (we sure do bang on about it a lot), but your Money Mindset is everything. How many times do you feel like money just does not work for you? That is your money mindset talking to you. Your money mindset drives your financial decisions.
We’ve detailed out the four most common harmful money mindsets you may have experienced and how to banish then.
Money may evoke feelings of fear, anxiety or disgust to the extent where you avoid some activities. If you often find yourself not checking your bank statement or bills that come through the door, that is a sign of Money Avoidance.
A way to deal with this is by accepting that money is not bad, and banishing any thoughts that say to you that you do not deserve happiness through money. Try writing down everything that scares/provokes fear when it comes to money. Then, rip it up.
The say ignorance (or avoidance in this case) is bliss — it is not! Whatever the reason you are avoiding money, whether it be because you are too busy, or if you genuinely fear opening your bank account in preparation to expect the worst. Then boosting your knowledge around money and feeling confident to know what the options are is the first step. Then it all comes down to building an effective way of open communication with yourself. Perhaps allocate one day a week where you will focus on your finances and do all the activities regarding money you previously put off in the past. Maybe enlist a friend to help you stick to it.
Money is seen to resolve your problems. Adopting this mindset is apparently very common with baby boomers. People with this attitude are likely to carry revolving debt and have no issue with getting into debt.
We’re about to get deep here. We live in a wealth-focussed world, where material items are seen as very important and people can often waste their lives in pursuing tangible things. And in term lose something that is eternally important — their souls. Okay, deep session over.
The best way to stop falling into the money worshipping category is by focusing more on the non-monetary factors i.e. do you do something because you’re passionate about it rather than the monetary rewards? If you thought differently and focused on some of the non-monetary awards of life, will this dilute some of the other problems you face in life?
Let us just say one thing, YOUR SELF WORTH IS NOT NET WORTH.
Common amongst younger generations and certainly noticeable amongst our peers is the that money is a status symbol.
One thing to do to get rid of this is to release your attachment to money or luxury goods. Perhaps try shopping all supermarket basic items for a week to ease yourself then start to peel yourself away from some of the pricier ticket item must haves in your life if you are in the place where you can’t afford them. For most things, there is a cheaper alternative.
Money Vigilance centres around being secretive about finances and your behaviour when it comes to money. There is a fine line between being good with money and not enjoying the your hard earned cash *cough* hoarding money *cough*
Firstly, it’s all about realising there are some massive benefits to spending money now rather than hoarding. If we are looking at the economic level, spending rather than saving could be cheaper if we throw the possibility of rising inflation i.e. future price rises into the mix.
Plus being able to let go of your money means you trust yourself when it comes to your ability of making more money. First steps to doing this? Create a spending plan that allows you to see where your money is going each month to allow you to identify what your money is doing and gain control with letting it go.