Studies conducted by Harvard psychologists have found that your money mindset is directly tied to your financial well-being. And with the right type of money mindset, you are able to achieve increased levels of happiness, healthier relationships, better social connections and greater job satisfaction.
I mean... who doesn't want to experience all of those things!
It's clear to see that the impact of your money mindset is vast and expansive... It touches many important areas in your life, which is why it is important to work on creating a mindset that truly serves you.
Your money mindset directly affects how you feel about money (whether you're always worried about it, or feel a sense of ease), the financial decisions you make (or don't make), the opportunities you grab hold of and your overall success in your financial life.
This is an area many people neglect, as they are not aware of the sheer impact it can have on their lives.
But the question remains, how do you develop financial happiness from the inside out and develop a money mindset that injects life into your financial well-being?
There are many cogs that affect the wheel of your money mindset, but here are a few simple tips to get you started:
1. Understand the stories you have about money
We all have stories that we hold on to in regards to money. You may, or may not be aware of them, but they are silently dictating how you feel about money and the decisions you make.
These stories can often be developed at a young age when we witness or experience something negative or positive related to finances.
It may be witnessing your parents struggling for money and you go on to develop the story that earning money is a struggle that cannot be avoided.
This may lead you to gravitate towards jobs that may be taxing on your mental and physical state.
Let's take a look at another example. Maybe you saw somebody close to you have a successful business that suddenly went bust.
This could result in you creating a money story that says success is difficult to keep, which may prevent you from realising dreams you have around starting your own business.
I invite you to take some time to think back to money stories you may have picked up along the way and understand how they have been affecting your relationship and success with money.
Once you have awareness of this, you will be able to decide if the stories are serving or hindering you!
2. Pinpoint your beliefs
We all have a plethora of beliefs about money. So are great, and some... Not so great. We can create or pick these beliefs up in various ways and similar to our money stories, they are subconsciously dictating how we feel and behave around money.
You may have beliefs like...
"I'm no good at saving"
"I'm a big spender and can't stop"
"I will never get out of this debt"
"I'm really bad with managing my money"
"I won't ever earn more than I'm earning now"
These types of beliefs create a huge amount of stress and also cause roadblocks to what you want from your financial life.
If you believe that you aren't good at saving. You will probably never make real steps towards your saving goals.
Similarly, if you believe that you aren't capable of earning more than your current salary, you will most likely pass up on opportunities (or not even notice them) which could lead to that happening.
Take a moment to think about what money beliefs you have which could be negatively impacting your financial well-being and success.
Once you have the awareness of these, you will be able to work on replacing them with beliefs that serve you better.
3. What is your level of desire?
Your level of desire for a better financial life has a direct impact on the action you take towards it. If you are able to understand where you stand on the desire scale - low or high - you may be able to pinpoint an underlying reason as to where you are right now financially.
Having a low desire in this area may show up as you not having the motivation to make changes for the better. On the other hand, a high level of desire may show up as you trying out different things to improve your financial life.
If you can understand what level of desire you have for improvement in your financial life, this will put you in the driver's seat to making a change.
The three factors explained above are just a few of the many areas that make up your money mindset.
Once you begin working through these areas you will begin to see a profound elevation in your financial life in a way that you never have before!