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Money Mindset Influences: What You Didn’t Know!

Money Mindset Influences: What You Didn’t Know!

Your success depends on your mindset .Let this sink into your mind for a moment. If you let your mindset run your show, you’re pursuing the surest route to long-term suffering!

The reality is: every decision you make is influenced by your mindset. Your mindset—good or bad—pilots what you do, whom you associate with, where you go, how you solve issues, how you view life, how you vote, and what you want to hear or watch.

Think it this way- the currency notes you brag of or spend sleepless nights looking for is nothing but a printed paper. It has no value at all other than the assigned value. Period! So why would you want to compare your personal worth to a printed paper with no value?

Sadly, millions of people have adopted this ill and feeble money mindset. If you value yourself, change your mindset. Here is how you can go about it:

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1. Never entrust your financial decisions to others.

Money management tools like Quicken is informative and beneficial, but it’s vital to believe in your own ideas and take a complete control over your financial decisions .Any financial advice from somebody else is often not as secure as executing your own productive ideas. If you have been dreaming about a certain business idea, rise up. Implement it. Go out there and act swiftly. Draft a business plan. Never allow limiting beliefs about your abilities throttle your money making creativity. Remember, you can achieve even if you aren’t an expert at something!

2. Dare more.

Never operate from scarcity Instead, catapult yourself into the abundance. Reject the normalcy/regular and predictable life. Instead, release yourself into the world of inconvenience and opposition. The safety of normal is the enemy of success.

Try and try. A mindset of hoarding resources is the surest route to creating scarcity. Jump into the ring. Punch yourself into the championship of financial success instead of wallowing in the stands with your negative mindset that is governed and driven by the outcomes of other people’s financial games. 

3. Save. But enjoy your life and money!

Yes, you can plan for your retirement .But this is not as powerful as living in the present while being aware of the future. Postponing enjoying life is similar to pushing away the present prosperity. You’ll be doing yourself a great disservice if you decide to delay enjoying life until your circumstances improve. A financial mindset that is pillared around postponement is likely to link your emotional happiness to the financial future.

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4. Money won’t solve everything.

Get this into your mind and peel off that mindset from your life once and for all. Money is not the only ingredient as far as financial happiness is concerned. Maintain a clear emotional-money separation. Money won’t transform your life into a more meaningful one. Neither will it improve your relationships with the loved ones. Simply put; money will only solve financial problems. Simple!

5. Burry that limiting financial belief!

Never believe that money is the root of evil. Believing in this myth is likely to block your prosperity. There is no harm to living modestly, but there’s nothing gracious about being broke. Embracing a positive mindset that enables you to be respectful of, but psychologically detached from real money will go a long way in helping you to make wise and better decisions as far as your financial life is concerned.

6. Chart your own path.

Don’t be afraid. You’re the driver of your own destiny .Remember; scarcity is a product of negative mindset influence. Human creativity, from science, can solve any problem including financial ones. Embrace positive but different thinking to that of the struggling masses. Then wait for the results!

7. Treat yourself better.

Practical spending is important and prudent. But it’s vital that you enjoy the fruits of your hard work. Buy something that makes you feel good. This will encourage a positive financial mindset and give you the urge to even work harder.

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8. Don’t be a slave of money.

Being too obsessive of large amounts of money can cultivate unhealthy responses such as greed and untruthfulness. Whether you have a little or a lot, this kind of obsession can make you a slave of money.

If you form a positive mindset that views money as just a tool and desist cultivating an emotional attachment to it, you’re in control. You’ll never be a slave. Remember, money is just a printed paper and has no intrinsic value whatsoever. You, unlike money, is extremely precious. The more you let the world know that you’re valuable, the more you gain self-esteem and abundance.

What you need to know?

As far as money is concerned, your mindset has a great bearing on the level of care, the degree of stewardship, and the extent to which you value it. Positive financial mindset results into a protected financial stability dominated by good savings, sound financial management, and careful planning. On the other hand, a negative mindset is the root cause of appalling debts and unsupportable lifestyles.

Carefully evaluate practical examples around you and rethink about your financial life by answering the following questions:

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  • What is your money/financial mindset?
  • Where do you fall- a saver / spender?
  • Is money the sources of conflict in your relationship or you’re having an exclusive control over it?
  • Are you worried about money or you are much secured with the path you’re taking?
  • Do you evade tackling money issues or you always try to pursue the answers?
  • Does your mindset often result in a restful night sleep or they are always dominated by worries and fear of your unpaid bills?

Mindset is like software!

If you have already invested in how your financial life is proceeding, congratulations. But if yours is characterized by challenges and constant worries that often lead to stress as well as unhappiness, something is amiss and you need a quick fix immediately.

Remember, the mindset is like software. Your mindset dictates which route to take work every morning, whether you feel like going to the gym or cling to your blanket. Your mindset, just like computer software, can be altered, adjusted, programmed and reprogrammed, or replaced with money mindset 2.0, 2.1, or 3.0. The will, effort, awareness, and desire to make your life better need mindful, intentional, and positive upgrades.

However, the main problem is when you don’t believe that you can change. Mindset upgrades are not magic and don’t happen automatically. It takes will, determination, positive attitude, and action to effect real changes.

How to get clarity about your mindset?

To get a clear picture of your money mindset, ask yourself the following questions:

  • Is your current lifestyle getting closer or further away from your dream future life?
  • Does your decision support your long-term financial happiness?
  • Is your spending operating in the “autopilot”?
  • How do you feel about your money life: good or bad?

If the answers to the above questions make you feel that all is not well in terms of where you want to be, then until you outgrow this negative money mindset, you’re still in the kindergarten of financial freedom and vast money mindset. The difference is not in your abilities, it’s in your mindset.

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Rahis Saifi

Entrepreneur

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Published on November 20, 2018

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

Why Your Past Prevents You from Saving Money

Are you constantly thinking about your financial mistakes?

If so, these thoughts are holding you back from saving.

I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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How to Effortlessly Track Your Spending

Stop manually tracking your spending.

Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

The Truth on Why You Keep Failing

Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

  1. Save more than 50% of your available money (after expenses)
  2. Only buy nice things after saving
  3. Automate your savings with automatic bank transfers

These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

How to Foolproof Yourself out of Debt

Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

So how can you separate yourself from the 60%?

By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

A Proven Formula to Skyrocket Your Savings

Having proven systems in place to help you save more is important, but they’re not the best way to save money.

You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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Transform Yourself into a Saving Money Machine

Saving money isn’t complicated but it’s one of the hardest things you’ll do.

By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

What are you waiting for? Go and start saving money, the sky is your limit.

Featured photo credit: rawpixel via unsplash.com

Reference

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