Do you know your money mindset?

Have you ever thought about how much your financial outcomes are affected by your individual money mindset?

While we might think of it as all about the numbers, our money lives are often shaped by things like our thoughts, beliefs and emotions – sometimes even patterns we aren’t really aware of. 

These beliefs might come out of things we’ve grown up with, attitudes of family members, experiences of friends, or just unique quirks of personality.

But identifying these forces and working out what’s helping you, and what might be a hindrance, can be really important as part of improving your financial outcomes.

Here are some things to think about.


Money on the brain

Money psychology covers the space where our mental processes and thought patterns collide with our financial lives.

When we talk about money psychology, we are thinking about things like how our beliefs, biases, perceptions and ingrained attitudes affect how we handle our money. 

That might be anything from a person’s propensity to save through to their willingness to take risk with their investments.

Your money mindset could be helping you achieve your goals. You might have the knowledge, confidence and skills to make great decisions and manage your money without too much stress. But on the other hand, it could be a handbrake holding you back, causing you unhappiness and stopping you from achieving your full potential.

The good news is, once you can identify your money mindset, you can start changing it as needed.


Stocktake your internal dialogue

The first thing to do may be to take a very honest dive into your beliefs about money. 

Did you grow up with parents who struggled with money? Is it something that makes you feel uncomfortable? Are you reluctant to ever spend? Or does money start burning a hole in your pocket as soon as it arrives?

Sometimes beliefs come from childhood, and other times they are things we’ve picked up along the way.  Once you work out what your beliefs are, you could try confronting them to test which are sound and which might be built up on unhelpful ideas.


Establish goals

Knowing where you want to end up is extremely helpful when it comes to working out what steps you need to take.

What are your main financial goals? Are you saving for something, paying off debt, maybe getting your investments sorted? Set up some smart goals – that’s specific, measurable, achievable, relevant and time-bound goals – and think about the little things you can do every day to get closer to them. Having clear goals can really help boost your positivity and help you feel more in control of your money life.
Celebrate your wins

When you’re working towards a bigger goal, even something broad like a healthier financial life, cxelebrating small successes along the way can really help you stay on track.

Paid off a debt? Set up an auto-invest? Take the time to congratulate yourself on a job well done.


Welcome abundance in

It’s a common aspect of human nature that people get stuck on what they lack instead of focusing on all the things they do have. 

If you can switch to an abundance mindset, in which you focus on the possibilities and opportunities that await you, it will go a long way towards shaping a healthy money mindset. It can also help you reduce your stress and help you find new options for financial growth that might never have considered before.


Don’t stop learning

For many people, financial knowledge is something that grows over time and moves as their circumstances change and life evolves. Keep your mind open to learning and you’ll grow your positive money mindset and potentially tick off goals you might never have even thought possible.

A healthy money mindset isn’t something that happens overnight, and sometimes means challenging some long-held beliefs. But over time it can pay dividends many times over.

Disclaimer: Please be aware that the content presented in this article serves as a general overview and information only. While efforts are made to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your specific situation. Prior to making any decisions based on the information in this article, exercise your discretion and seek independent guidance.