10 Ways to Change Your Money Mindset

MONEY. The word alone brings up emotions inside of you that can feel uncontrollable. Anxiety, fear, jealousy, anger, resentment, worry, uneasiness, panic. These feelings develop a negative relationship with money that alters our money mindset and most certainly affects our personal bottom line!

So how do we get rid of it? How do we switch our money mindset and kneejerk reaction not only to the word but to how it shows up in our lives? Is it possible? Or are we just born with our money mindset?

Good news. We are in control. We have the power to change how we think, act, and feel about money.

It does take practice. And it does require work on your part. But the result is ABUNDANCE over SCARCITY.

What’s Your Money Mindset?

A scarcity money mindset says:

• I can’t afford that, and I’ll never be able to do XYZ.
• I need to spend my money now. Before it disappears.
• I have to outwork that person. She has my piece of the pie.
• I need to make more money. And FAST.
• I can’t believe they bought that. Who do they think they are?
• The economy is going to crash and we’re all doomed.

Maybe one triggered you. And the truth is: it’s holding you back! Because if that’s what you think, well…that’s probably what you’re going to get. If you have the mindset that what you have now is what you deserve and it’s good enough to survive, then your actions and decisions are going to reflect that. You may stay in the same job without ever asking for a raise. You’ll never branch out to find another source of income. And you’ll let money manage you by never figuring out your budget and/or adjusting when things change. 

An abundance money mindset tells us:

• I am capable of making money.
• Money is not evil. It’s a powerful tool.
• There is A LOT of money out there. Even for me.
• I control my financial situation.
• There are ups and downs and we’ll make it through.

Now, actions and decisions become different. Because money does not control you, you are confident in asking for a raise. It means you’re always looking for ways to make money. (Not in a greedy way, but in a hustler way.) And because you’re not afraid of it, you manage it. No matter how much is coming in.

Maybe You’re Both

You might have an idea of which one you lean towards. But the reality is, a lot of us are both. Some days we feel an abundance money mindset, but on others, we live in a scarcity mindset. And with our current world situation, we are finding ourselves in the latter state more often. But don’t worry, you can shift!

10 Ways to Shift Your Money Mindset

1. Figure Out the Problem

Hard to fix a problem if you’re not sure what it is, right? So this one takes a little digging. Be honest with yourself. There’s nothing to be ashamed of—a lot of what you know about money is how you grew up.

Did your dad buy you new things every day, and come home with big TVs and new motorized toys for the garage? Maybe your mom said “we can’t afford that” and hoarded every penny? Did your grandparents say things like “don’t spend it all in one place” and “money doesn’t grow on trees?” Well then guess what, they had a hand in your money mindset! So really think.

Write down 5-10 examples of what you thought about money as a kid…

There’s no good or bad—just truth! Few examples:

• We never have money.
• Save your pennies.
• Buy whatever you want, however you can.
• “We can’t afford that.”
• Save it for a rainy day.
• Buy everything in cash.
• I never knew a thing about money...

From there, circle any that have stuck with you for years. What have you taken from childhood to adult life? Now you can start to recognize your thoughts and beliefs—which ultimately makes it easier to change. When you feel one of them creeping up, put a stop to it!

Note: if you find a lot of these to be positive reactions, great! You’re already well on your way and probably lean towards an abundance mindset already.

2. Build a Positive Relationship with Money

Think of money like a family member or a great friend. Can you totally neglect those people and expect to have a great and lasting relationship? No. And the same is true for money. Do you think not having any idea what’s going on half the time, and never giving a rip is going to develop a healthy relationship and an abundant money mindset? No, definitely not. Here is how to nurture the relationship:

• Spend time—check your account daily and check in on your budget weekly/monthly.
• Pay attention—what do things cost? What’s a good deal? What’s overpriced?
• Learn—what’s going on in the world? Companies, investments. Be a student! Knowledge is power.
• Give—nothing gives you a positive money mindset like the act of giving it away. More on that later.
• Talk about it positively—catch yourself making negative remarks and reverse them.
• Appreciate—be grateful for the positive impact it can make on your life. Shelter, food, fun experiences, the list goes on.

Note: this has nothing to do with becoming obsessed with money. Obsessions tend to have a quick negative impact. This is solely an adjustment to your overall relationship. Thinking about money positively is an important step.

3. Fake it ’til You Make It

Guys, it’s a way of life. You could be starting a new job. Becoming a parent. Taking on a new hobby. And/or shifting your money mindset. When we start, we’re at zero. Ground level. We don’t know anything! But we fake it until we do! Go through each day as if you ALREADY ARE a money master. The universe will show up for you.

Say things like “I can afford anything (in time),” “I can’t wait to have $5,000 saved,” and “long term this is a blip and the economy will get back on track,” even if you’re not sure! Plus, stick to your budget. Transfer money over to your savings the day you get paid. Say no to a few purchases because YOU are being financially conscious!

4. Don’t Compare

Talk about a trap. IT DOESN’T MATTER! Does hating the woman in the BMW get you out of your Chevy Malibu (haha jokes on me…)? NO! Who knows…she could be on her way home to eat ramen because she’s trying to pay it off.

Or how about this trap—comparing similar money troubles? Do you find yourself whining about money to the same people who are in your same boat? Quit doing that. Misery loves company. And this connection is a dangerous one. Don’t compare/connect on negative outcomes like not knowing where your money goes or making less right now.

When it comes to money, stay in your lane.

Worry about your finances and what you control. Nobody else. There’s enough out there for EVERYONE. Just because someone has a big piece of the pie does NOT mean you can’t have a big piece too!

5. Practice Gratitude

To have a money mindset centered around abundance, you need to live in gratitude. If you cannot be grateful for what you have now, then you are never going to be grateful for what you have in the future. Read that again, please.

Not to mention, this gratefulness is going to lead to a more positive mindset. And you will attract positive things. It’s SCIENCE (I think?) Your financial situation flows towards the energy you give it. Be grateful and watch all areas of your life improve. Abundance won’t just hit your bank account, it’ll hit your life from all angles.

6. Set Goals

Do you know what’s motivating and can reaaaaally change your money mindset? Hitting your goals. But you can’t hit them if you don’t set them! So, create a bunch. Short term, long term, huge lofty dream ones. Write them down and hold yourself accountable. Have an amount you’d like to save every payday, month, year, 5 years from now. Decide on an amount you’d like to dedicate to giving, spending, everything.

Hitting these goals, small and large, will allow your brain to wrap your head around the flow of money. The coming in, the coming out, the coming back. It’s all a cycle. And the better you understand it, the more abundant your mindset will be.

7. Have Direction

You didn’t think you were going to get through an entire post on shifting your money mindset without me recommending a budget, did you? Guys. They are crucial. Without a money plan, you are going to fail. It takes a little time to build. And some practice to understand and get better (it’ll never be perfect). But trust me. It’s so worth it. And it does not limit your spending. IT FREES YOUR SPENDING. To spend on what you want—totally guilt-free.

I’ll help get you started! Read How I Save $10,000 per Year to Travel: Part 1 which is focused on a SIMPLE BUDGET. YOU CAN DO IT. If you need a few more tips, you can trust financial guru Dave Ramsey! Read this.

8. Give Back

The act of giving is so powerful. And can really make an impact right now. It not only helps make a difference in your community, and the world, but it makes you feel good. And what goes around, comes around. I believe any money you give will find its way back to you. It’s just how the world works. Are you going to wake up one morning to random chunks of change in your account? Probably not. But, things will shift over time—you’ll get a raise, find a new job, make a good investment, who knows! Giving feels powerful. And positive. And it will help shift your money mindset.

9. Limit Emotional Spending

These are knee-jerk reactions and it results in purchases we don’t even want, let alone need. It also fuels a scarcity mindset and makes us feel bad. When we waste money like this, we have less down the road and our insecurities flare up. It turns into “I don’t have enough,” “I can’t afford that,” etc. So before you buy things, THINK. Is this needed? Do I actually want it? Give it some time and decide in the right frame of mind vs. emotion-ridden impulses.

10. Become More Minimalistic

STUFF. You know what it is? It’s clutter. In your space and in your mind. It jumbles together, and you don’t know what you have or what you need or where things are. There’s no beginning or end. It leads to a chaotic lifestyle, you spend more (wasted) money, underappreciate the value of a dollar, and it brings negativity. An organized home leads to an organized life. So get started today. You have some time! Clean out the closet, the pantry, the junk drawer. Get rid of and sell things you don’t need.

BOTTOM LINE: APPRECIATE MONEY!

You know what money does? It buys your mom nice gifts she deserves. And allows you to enjoy food delivery with your husband. It provides the gift of giving back to those in need. It pays for health insurance, your gas, and that delicious cheat day doughnut. So give it some appreciation and you can shift your money mindset. One more time:

10 Ways to Shift Your Money Mindset

1. Figure Out the Problem
2. Start to Build a Positive Relationship with Money
3. Fake It ‘Til You Make It
4. Don’t Compare
5. Practice Gratitude
6. Set Goals
7. Have Direction
8. Give Back
9. Limit Emotional Spending
10. Become More Minimalistic

Cultivate Change and Be Patient!

This isn’t going to happen overnight. But a bunch of little shifts is going to lead to a big change. Now is the time to start working on these things. The world is changing and that includes the economy. But it’ll come back. And you can come out on the other side of this thing with an ABUNDANCE MONEY MINDSET. It’s out there. Go get it!