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Last Updated July 18, 2020

Do you wish you didn’t have to struggle so much with money? Much of your financial journey is emotional. It has more to do with your money mindset than numbers.

In order to make positive changes for the better, it is important to look inward and examine why your relationship with money is the way it is. Find out how to change your money mindset to have a more positive relationship with money. 

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What Is Money Mindset?

Your money mindset is your overall feeling towards your finances. It impacts how you make financial decisions every day, and can determine if you will achieve your financial goals.

How Do You Create A Positive Money Mindset?

You create a positive money mindset by controlling your thoughts about money. Having control of your thoughts and feelings about money can help you change your reality. By thinking positive thoughts and keeping your goals in mind you can actually manifest these things in your life.

7 Reasons Why You Should Improve Your Money Mindset

You should improve your money mindset for many reasons. When you have a positive money mindset you:

  1. Look for solutions to your problems rather than looking at all the obstacles.
  2. Understand that your financial situation can change and improve for the better.
  3. See value in asking for help instead of struggling silently.
  4. Celebrate the small achievements (even if it’s slow), because you understand small steps add up to big progress.
  5. Look at money from a place of abundance.
  6. You will become more grateful for the things you already have.
  7. Manifest good things to happen.

Your mind is so powerful. Your everyday thoughts can change your reality. So if you think positively, positive things will happen.

How Do I Determine My Money Mindset?

Is your relationship with money a negative or a positive one? Do you spend emotionally or logically? Do you have a mindset of abundance or scarcity? Let’s dig in a little deeper…

Negative Money Mindset

negative money mindset

You probably have a negative money mindset if when you think about money, it causes negative emotions such as: fear, despair, scarcity, and overwhelm. It seems easier to just ignore your finances because the challenge seems impossible.

Some common limited beliefs I see with my clients are:

1. Money doesn’t grow on trees.
Now, When you think like that, you see money as being scarce and hard to get.

2. Money is the root of all evil.
If you always associate money with evil then it becomes really hard to be enthusiastic about it. You start to feel like it’s a BAD thing to have a lot of money.

3. I’m just not good with money.
This assumes you can’t learn new things and you just accept your fate. You cannot use this as an excuse for not having money. What you really need to do is acknowledge that getting good with money is a lesson that can be learned over time.

4. It takes a lot of money to make money.
The life stories of the richest people in the world all came from humble beginnings and started small. Most of the millionaires in the United States (88% to be exact) are self-made. Only 12% inherited a significant amount of money, and most did NOT grow up in affluent neighborhoods.

You don’t need to have a lot of money in order to make money, you can begin with a small amount and build up your wealth slowly. Think of it as building a tower brick by brick.

5. The rich get richer, and the poor get poorer.
The problem with this is you’re assuming your financial fate has already been determined by someone else. Your financial future is entirely up to you.

6. I never have any extra money.
This is another excuse for not having money. What you really need to do is acknowledge that money management will allow you to have extra money.

If you have any of the limited beliefs I just mentioned you will never be successful.

It’s not your debt or income that’s holding you back. It’s your mindset that you can’t do anything to change the situation that’s holding you back. This just leads to you giving up on changing your financial situation and you do nothing.

Positive Money Mindset

positive money mindset

If you have a positive money mindset, you will be more likely to succeed during your financial journey. With a positive money mindset, you feel like no financial problem is impossible to overcome.

You don’t focus on how bad your financial situation is; instead, you look at what you can do to change your situation and focus on the path moving forward.

With a positive money mindset, you also look at money from a place of abundance.

When you look at money from a place of abundance, you feel like you already have more than enough. If you already feel like you have more than enough, you will let go of all the frivolous spending.

You don’t buy things to “make you feel better” because you’re already happy with what you have. You realize how blessed you really are, and recognize God has already provided you with everything you need to be happy.

So if you have any of the limited beliefs I mentioned earlier, I want you to think like this instead:

  1. There’s enough money for everyone who’s willing to go out there and get it.
  2. Money is a resource to do good in my life and for others.
  3. I’m going to educate myself about money so I can be good with money.
  4. I can make money even if I have to start out small
  5. My financial future is entirely up to me and everything I need to create wealth is already inside me.
  6. I will manage my money because when I do, more money comes my way.

How To Change Your Money Mindset From A Negative To A Positive One

money mindset

If you only focus on what’s wrong with your financial situation, you won’t be motivated to do something about it. Instead, your focus needs to be on finding solutions to your financial problems.

You’re not the first person to struggle to pay their bills or be this far in debt.

I’ve personally had 6-figures worth of debt from credit cards and medical bills alone! Accept that you did not get yourself in this situation overnight, and it will also take you some time to get out of this situation moving forward.

You cannot approach this financial journey with a scarcity mindset or limited beliefs. When you think of money, you should say to yourself “there’s more where that came from” instead of always thinking “I can’t afford it.”

Start by just making one small change. Make a budget and look for solutions instead of focusing on the pile of money problems you have. Look for a way out instead of feeling stuck and doing nothing.

free monthly budget printable

In my opinion, the first step to solving any money problem is making a budget or spending plan. A budget provides a lot of information about your spending habits and allows you to see where you’re going wrong with your money.

If you want to use the same budgeting method I use, you can check out my budget templates. These templates have helped me transform my 6-figure debt into a 6-figure net worth.

Monthly Budget Template
My Monthly Budget Template

If you think your situation is just too overwhelming and you need some help figuring out where to start, sign up for a FREE 15-minute financial assessment and learn where you’re financially strong and what areas could use a little more work.

If you change your money mindset to be more positive, you will look for opportunities instead of focusing on all the reasons you can’t succeed.

Start Thinking About Your Money Future

money and phone on desk

Moving forward, I want you to start thinking more about your ability to earn, save, invest, and get out of debt in the future. Determine what actions you will take to get the results you want.

But in order to do that, you need to understand your fears and insecurities. Fear is a huge issue for many people and can hinder us from meeting our long-term goals. Your financial fears right now can be in the form of:

  • A fear of failure;
  • The fear of being found out by others;
  • The fear of pressure and not being able to achieve your goal; or
  • Even the fear of wasting your money on another program only to find out it doesn’t work for you.  

So ask yourself:

  • What are my fears and insecurities?
  • How did I get here?
  • What about these fears will prevent me from moving forward?
  • Why do I think I need help?

Now, that you have a better understanding of your fears and insecurities, make a conscious effort to not focus on your feeling of fear and focus on improving your money future. What you think and believe you can do, you will do.

The person making $1 million a year believes she can make that much, and is going to do that. It’s all she can see and what she thinks about. She makes a plan on how to do that, and she works towards that every day.

So if you want to see changes in your money, you need to change your beliefs about money.

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How To Take Action And Make A Plan For Your Money

Now that you’ve changed how you think about money, it’s time to make a plan for your money and how you will achieve these goals.

Ask yourself the following questions:

  • Why should I start this money journey or financial program?
  • What are my financial goals?
  • What do I hope to accomplish?
  • What is my WHY? What’s going to motivate me to keep going when things get hard?
  • What is the 10-year, 5-year, 1-year goal?

Once you have your financial goals clear, start taking action every day to help you get closer to achieving those goals.

write financial goals

Don’t Make This Mistake

The biggest mistake I want you to avoid at all costs is not investing in yourself. This is the BIGGEST mistake I see beginners make ALL THE TIME! They feel like they don’t have the money, so they can’t invest in themselves. And this is actually a BIG MISTAKE.

The biggest difference between rich/successful people and people who struggle financially is they’re not afraid to invest in themselves.

Rich people don’t hoard their money and try to hold on to every dollar—they use their money to make more money. They know by letting their money go, that money will come back to them with even more money.

My favorite quote from the greatest investor of our time, Warren Buffett, is “The most important investment you can make is in yourself.” 

I want you to think of all the ways you will invest in yourself moving forward.

When I started my financial journey, I understood that if I invested in the right areas, it would all work out. If I found someone to guide me, I’ll be a lot better off than trying to figure it out on my own. If I have the proper budgeting tools managing money would be a lot easier.

I also knew that by investing in myself I would have skin in the game and will be serious about it.

So I want you to think about all those things. When you see how much better your life will be, you’ll realize you should’ve done this years ago! Okay, so will you start investing in yourself this year?

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Summary

Regardless of your money mindset right now, you can change your money beliefs to be something different and more positive. When you change your money mindset, that’s when you can truly start your financial journey and design your dream financial life.

Finally, think like Warren Buffett and don’t be afraid to invest in yourself. Get the financial tools you need or advice from someone who has been where you are and has proven they know how to achieve the goals you hope to achieve.

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