Financial Tips: Money Mindset

• Express gratitude for the finances we already have

• Forgive our past financial mistakes

• Challenge our beliefs around finances

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Our mindset around money has a great impact on how we think about it and also influences how we save, how we spend, and how we manage debt. It’s our core beliefs about money and our attitude towards it. Taking time to analyze our current relationship with finances is necessary, regardless of the season or stage in life we are experiencing right now. In doing so, it will possibly lead us to make a shift in our money mindset, as it paves the way for fostering a more positive and healthy relationship with our finances. Navigating through life’s ups and downs can sometimes leave our money mindset less than optimistic. However, getting to know how we think and feel about money, often referred to as our ‘money mindset’, can significantly influence our financial decisions, behaviors, and overall financial success.

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Questions to consider answering while taking inventory:

• How do I feel about money?

• What are my core beliefs about wealth and financial success?

• How do I react to financial challenges?

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The foundation of money mindset

This  money mindset is shaped by a number of factors, including upbringing, cultural influences, past experiences, and personal beliefs. These factors combine to create a set of attitudes and beliefs about money that influences our financial decisions. This  money mindset is usually established early in life.

The scarcity mindset

One common money mindset is the scarcity mindset. People with this mindset often feel that there is never enough money to go around. They worry about running out of money, even if they have a comfortable income. This mindset can lead to excessive frugality, hoarding, and a reluctance to invest or take calculated financial risks. 

The abundance mindset

On the opposite end of the spectrum is the abundance mindset. Those with an abundance mindset believe there’s an abundance of opportunities and resources available to them. They are more likely to take risks, invest, and seek opportunities for financial growth. This mindset can be empowering and open doors to financial success but can also lead to negative consequences if not kept in check.

The balanced money mindset

A balanced money mindset involves a healthy relationship with money. People with this mindset view money as a tool for achieving their goals and priorities, but they don't let it define their self-worth or control their lives. They understand the importance of both saving and spending wisely.

Remember that your relationship with money is not set in stone; it can evolve and improve over time with conscious effort and self-reflection.