Advertising
Advertising

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:

Advertising

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.

Advertising

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.

Advertising

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:

Advertising

  • 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.

More by this author

Rahis Saifi

Entrepreneur

You Need Fat! These Are the Foods with Good Fat That You Should Eat! Why Animation is Must for Your Business Advertisement 6 Organic Home Remedies for Dry Winter Skin Being Bilingual Opens Opportunities: Learn a new language Money Mindset Influences: What You Didn’t Know!

Trending in Money

1 The Average Retirement Savings and How to Save Wisely 2 How to Invest for Retirement (The Smart and Stress-Free Way) 3 How to Nix Your Credit Card Debt in Less Than 3 Years 4 Top 5 Spending Tracker Apps to Manage Your Budget Smart in 2019 5 How to Use Credit Cards While Staying Out of Debt

Read Next

Advertising
Advertising
Advertising

Last Updated on June 6, 2019

The Average Retirement Savings and How to Save Wisely

The Average Retirement Savings and How to Save Wisely

Are you on track for retirement?

If not, don’t worry, I’m not sure either. I save each month and hope for the best.

Fortunately, I’m at an age where most people don’t save so I’m ahead of the curve.

But, what if you aren’t in your 20s? What if you’re near retirement and are looking to gauge where you stand?

If so, keep reading. Here’s how to prepare for retirement and save wisely during the process.

What Does the Average American Have Saved for Retirement?

Saving for retirement is tricky.

Tell someone straight out of college to save $10k a year for retirement and it’ll be next to impossible.

Make the same request to someone decades older and they’d be more likely to be able to save this amount. But, a 20-year old college student can be “financially ahead” of someone saving more than them. Why?

Age matters in your financial journey. The younger you are, the more time you have to save and put compound interest to work. As you get older and have more saving power, you’d have less time to put compound interest to work.

Here are the average savings Americans hold by age bracket:

20’s – $16,000

During this stage, most people are paying loans and moving up the corporate ladder. Your best bet during this stage is to focus on eliminating debt and increasing your income. Don’t focus only on getting a high-paying job neither.

Advertising

Instead, focus on learning via Podcasts, reading books, and taking specialized courses. Doing this will make you more valuable and give you more career options.

30’s – $45,000

At this stage, you’ve hopefully escaped your entry-level salary and work at a career you enjoy. Your earning power has increased but you now have more obligations. For example, marriage, kids, and a mortgage.

Set a plan to pay off all your debt and focus on eliminating unnecessary expenses. Leverage financial tools like Personal Capital to ensure you’re on track for retirement.

40’s – $63,000

This is the stage where you’re at the prime of your career. Top financial institutions recommend you have at least 2 to 4 times your salary saved up. If you’re falling behind, start maxing out your 401K and Roth IRA accounts.

50’s – $115,000

During your fifties, you’re close to retirement but still, have time to save. You may be helping your kids pay college tuition and other expenses. Since you’re at the peak of your earning power, max out all your retirement accounts.

60’s – $172,000

By this point, you should have about eight times your salary saved up. If not, you’ll depend primarily on social security benefits averaging $1400 per month. Max out all your retirement options as much as possible before retiring.

Ways to Save Money on a Tight Budget

The sad reality is that most Americans aren’t saving enough for retirement.

Even high-earning power isn’t enough to secure one’s financial future. You need to have the discipline to save for retirement while time is in your favor. Don’t wait for you to have a high salary to save, start with having a small budget.

First, get a clear picture of where you stand. Write down a list of “needs” and “wants.” For example, Netflix and Amazon Prime are “wants” and a “cell-phone” is a need.

Use tools like Personal Capital to analyze your spending patterns. Personal Capital allows you to add all your financial data in one place–making it a powerful option to gauge where you stand.

Once you know all your expenses, organize them from highest to lowest expense. When you can’t cut more expenses, call your service providers to negotiate a lower price. If you’re not good at negotiating, use services like Trimm to lower your monthly expenses.

Advertising

How to Save Money Each Month

By this point, you know the average amount of money you should have saved for retirement based on your age.

But, breaking this down into monthly goals can be challenging. Here are some rule of thumbs to follow:

Aim to contribute 10%–15% of your salary each paycheck. Review your progress each week.

Why so often? The reality is that life gets in our way and you will have many financial setbacks. Your goal isn’t to be perfect but to get back on track instead.

Reviewing your finances weekly lets you know where you stand with your retirement. This doesn’t have to be a long process either. All it takes is login in Personal Capital to view your net worth and check how much you have saved for retirement.

Turn saving into a game and aim to save more each month. It will get challenging but you’ll get creative and find more ways to save.

Top Money Saving Challenge Tips

To prepare for your financial future and not be another statistic you need to be different.

How?

By adopting new habits that’ll help you become a saving machine. Here are some ways you can save more:

Automatically Contribute Towards Retirement

If you’re working for a company, you can automatically contribute towards your 401k. If you’re not currently contributing more than 10%, make this your goal. Contribute 1% more today and automatically increase this amount a year from now.

Odds are that you’re not going to be negatively affected by contributing 1% more. Many times we spend our money on things we don’t need. Contributing more towards retirement is a great way to secure your financial future.

Advertising

Use the Right Tools to Know Where You Stand

Once you’re contributing more towards your retirement accounts, gauge your progress. Make use of finance tracking apps to help you view the big picture of your retirement.

When I’d first signed up for the app Personal Capital, I didn’t know I had a negative net worth. Despite saving thousands of dollars, my debt brought my net worth to the negative. Knowing this motivated me to save more and spend less.

Now, I have a positive net worth. But, it was because I was able to view the big picture using the app. Find out what your net worth is using a finance tracking app and you may surprise yourself.

Bring in Experts to View Your Blind Spots

If you have too little or too much money saved, you should consider hiring financial experts.

Why?

You may need someone to hold you accountable to help you reach your financial goals. Or, you may need help managing your money as effective as possible.

Regardless of the reason, getting help may help improve your financial situation.

Before you hire an expert, find out which areas you need help the most. For example, if you’re constantly overspending, find a debt counselor. If you’re struggling with choosing the best investment options, hire a financial advisor.

Speed up Your Retirement Contribution

After learning how to manage your money well, the next best thing is to earn a higher income.

You’re capped at how much you can save but not much you can earn. Even if your employer isn’t giving you a promotion, you can still take charge of your financial future. How?

By starting a side-business.

Advertising

This will be something you’d work on after you’ve finished your day job. Once you start earning income from your side-business, you’ll be financially better off.

The best part is the more work you put into your side-business,[1] the more potential it has to earn more money.

So start a side-business in an area you’re familiar with. For example, if you enjoy writing, do freelance writing for small e-commerce businesses.

Once you’re earning a higher income, you can contribute more towards your retirement. Don’t wait for the right opportunity to secure your financial future, create one.

Reach Financial Freedom with Confidence

What if you were able to retire tomorrow with no problem, all because you’d have enough money saved up and little to no debt left to pay off? How would you feel?

My guess is that you’d feel happy and relieved.

Most Americans are falling behind their retirement goals for many reasons. They’re not prepared, they carry bad money-habits and are thinking short-term.

For you to retire successfully, you need to work backward and adopt better habits. Contribute more towards your 401K and focus on growing your income.

If you do, you’ll save money and pay debt faster.

Don’t beat yourself up if you’re behind your retirement goals. Take the first step today towards a brighter financial future. Isn’t retirement worth the hard work and sacrifice to be at peace?

Featured photo credit: Huy Phan via unsplash.com

Reference

Read Next