Whether you want to get up at 5 am or stop eating crisps, our subconscious mind is running the show. When it comes to money, our minds can hold us back much the same, so rewriting how you think about money is no easy task.
Understanding your beliefs about money
Awareness is the biggest advantage we can have when it comes to our money mindset. The most important areas to address are our pre-existing beliefs, rooting right back to our childhood conditioning. Get a pen and paper and note down any behaviors you exhibit around money. Then think about what you might have picked up from your parents or guardians while growing up. From this, try and tell a story about your thoughts and feelings towards money. Everything is more manageable when it can be read in black in white.
For example, if you tend to spend your money on sales instead of paying off your student loans or saving for the future, what’s the story behind it? In this exercise, you’re going to talk about why you do what you do. If you are stingy with money, perhaps you can mention your parents were too, and you do it because you’re afraid it’ll run out. If you’re a big spender, the story could be that you grew around lack and now your mission is to spoil yourself. Use specific examples of money experiences in your lifetime.
In this exercise, be honest about your relationship with money. The purpose is to uncover what beliefs you have about money. Again, be objective in your reality; it is not good or bad. It is about unlearning and learning.
From the stories you have around your beliefs, look at which ones are getting in the way of your abundance and balance. Balance here speaks of healthy spending habits.
Define what success with regards to money is for you, and then look at how your beliefs are getting in the way of you attaining the success you want.
Fixed vs Growth mindset
Through teaching young people for seven years in school, I have learned a lot about fixed vs growth mindset. In the context of learning, someone with a fixed mindset believes they have a certain level of intelligence and that there will be little to no movement on that for their lifetime. On the other hand, those with a growth mindset believe in their ability to consume new knowledge over time, adapt and change. A “Scarcity Mindset” is the equivalent of a fixed mindset when it comes to money, thinking that no matter what, money is a limited resource, and you won’t ever be able to “get ahead”. The bottom line is that a growth money mindset is essential in changing your circumstances.
Notice the power your words hold
You don’t need to stand in front of the mirror and repeat affirmations, although it might help! Nonetheless, I would like you to be aware of how you talk about money to your partner, children, family, colleagues, and friends. The more you say something the more you believe it so try and be positive and realistic in what you say.
Is comparison the thief of joy?
The truth? Sometimes, but not all the time. Comparing ourselves to our friends or people from school/university doesn’t get us anywhere as the only thing we can control is our own lives. Also, we only ever see a small snippet of people’s lives so don’t overthink it. On the other hand, comparing ourselves to those less fortunate should remind us how lucky we are in many respects and ensure we don’t take life for granted.
Don’t dwell on your mistakes
We have all made poor financial decisions at some point in our lives. Of course, some have a more devastating effect than others, but we can’t change the past. No matter how difficult a mistake might be to overcome, there is only one option and that is to keep moving forward. My advice is to never let yourself dwell on mistakes you have made, just move on, and use the lessons you have learned to your advantage.
If you would like to discuss anything you have read in more detail please get in touch with our Financial Advisor Rachel McCallion, today either by email or phone: 07507 792 078
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