5 Money Mindsets We Need to Let Go Of
You might think your financial health is determined by your salary or your budget, but what if I told you that your financial future is determined by what’s going on between your two ears...??
Your mindset when it comes to money will determine if you’re more likely to be an over-spender or an avoider when it comes to managing your finances. It will determine if you constantly live in scarcity or a feeling of abundance. It will determine if your finances become a source of stress or of freedom.
Below are 5 money mindsets we absolutely need to let go of if we want to find ourselves financially free and masters of our money…
1. Money breeds bad people
Money is nothing but a resource, a tool that can be used for good as much as it can be used for bad. The truth is that money does not change people it simply amplifies who a person already is deep down.
If someone has good intentions, money will become nothing but an extra resource which will allow that person to have a bigger impact. Of course on the other hand, someone with bad intentions will be able to use those resources for worse. When put this way it becomes clear that the issue isn’t money itself but the core of the person who comes across it…
2. It’s all about the money
Let’s move away from focusing on the money for a second. What’s the point of having more 0’s on your bank account or extra pieces of colourful printed notes? There is no point unless you truly give your money a purpose. Until you give your money a true, genuine reason for being, you’ll always have a blockage when it comes to creating more income. You won’t seek out that promotion, you won’t seek out a savings plan or look into investment options.
If you want to create the pull towards more income you need to get extra clear on the purpose. Ramit Sethi (author of I Will Teach You To Be Rich) suggests asking yourself the following 2 questions…
What is one area in your life that you love spending money on? (Travel, health, personal development, clothes, restaurants etc.)
What would it look like if you could 4x the amount you spend in that area?
The goal of that exercise is to help you understand that money is nothing but a means to an end. Does money buy happiness? Of course not, but with it we can purchase the goods to help us amply our impact, align with our values and pursue our deepest mission.
This kind of thinking can also ensure we don’t fall in the “I’ll be happy when XYZ” trap. Because no, more 0’s in your bank account won’t make you happier, but the clarity in pursuit of a meaning full purpose will.
3. Ignorance is bliss
Having an avoidant tendency with money is very common but let me break it to you right here: avoiding your financial concerns will not make them go away. I speak from experience because I used to hate checking my bank balance, so my natural reaction was to avoid it. This brought me nowhere for the simple reason that the root of the fear is the fear of the unknown, therefore the solution does not lie in more unknown, but rather in facing the concern and moving into the known (AKA facing your bank balance).
The best way to start having a healthy relationship with your finances is to check your bank balance daily (or almost daily) and face your finances as often as possible.
Think of it this way: the more you do it, the less unknown it becomes, therefore naturally the less scary it is. If you checked your balance 2 days ago, you’re probably not going to be worried to check it today. But if you haven’t checked your balance in 3 months, you might have that knot-in-your-tummy, should-I-just-avoid-this? feeling. The solution: face it often, beat the fear. Ignorance is not bliss, understanding is.
4. You have to suffer to make money
This is a belief many of us have and grew up learning. It was only recently that I realised that I was personally living with this belief. I got to a point where no matter how much I worked I kept feeling like I wasn’t doing enough, I wasn’t suffering enough. Even though I was earning enough to sustain my living I kept thinking “this isn’t sustainable, something’s going to crash.” Doing work I loved didn’t feel like a viable plan...
What was the impact of this belief??
I kept trying to do more, more and more. I only felt satisfied when I ran myself into ground - but that had no impact on my income. I was pushing myself to work long hours, to suffer, without a focus on what would actually move the needle forward. That’s when the realisation kicked in...
Suffering ≠ more income
Here are 3 signs you might be living with this belief:
You feel like you’re never doing enough, never suffering enough - and it feels like you’ll never earn enough to fulfil the lifestyle you want
You’re stuck in a job you hate because “that’s the only way to make an income”
Your true passion is just not bringing in any income because this belief in the back of your mind is sabotaging your efforts to make it lucrative
5. Money doesn’t matter
This belief does nothing but diminish the power we all have as consumers. No matter how much or how little money you have, every single dollar spent is a vote for the future. When you purchase an item or pay for a service you invest in the future of that person, brand or industry. The economy naturally evolves to meet consumer needs. Have you noticed the increase in plant-based options in restaurants or in sustainably produced clothes? These have all come about because normal people like you and I have voted. No one asked us to fill out a ballot, but our vote was implicit in our spending habits.
So yes, money matters. Simply by having some we take on board a huge power and a huge responsibility. We can choose the future of our world, every single time we click “add to cart”.
You’ll find much more explanations and examples on my podcast episode on the Money Mindset below.
Keen to do the work on your money mindset? Download my FREE Uncover Your Money Mindset Guidebook below!