Poor money management can lead to debt and increased stress.
With a positive mindset, we are more likely to make sound financial decisions and stick to our money goals.
A strong financial situation is more than managing finances. It’s about managing emotions. Feelings and money are tied together.
Emotions are so significant because everything we do in our life is based upon how we think it will make us feel. Everything we do or don’t do is because of an emotion.
How do you think you’ll feel with a new car? How do you think you’ll feel going out in that new outfit? How do you think you’ll feel when you see the balance in your savings account? How do you think you’ll feel saving for the vacation of your dreams? How will you feel if you miss a bill payment?
Two areas that we need to pay attention to regarding finances include:
1. Our beliefs/thoughts about money.
2. Our skills around money.
Our first beliefs about money begin with what we learned growing up. “Money doesn’t grow on trees.” is a common line that we may have heard from our parents. More examples include: “Time is money.” “Don’t waste money.” “Hard earned money.” “Money is the root of all evil.” The thoughts we have may be conscious or unconscious.
Increase your understanding of your thoughts and feelings surrounding money. An exercise that may be helpful is to take one day – or a week – and log your spending. After each purchase, take a moment and write down your thoughts and emotions. What’s running through your head? How do you feel? Be honest and thorough. Review this to see any patterns. Consider how your spending habits are affecting your mental health.
Improving financial skills begins with awareness. Take an inventory of your assets and debts. Knowing these numbers is empowering. Create a realistic budget by separating your needs from your wants. Set goals and make a plan for reaching them.
A positive mindset grows from creating a positive relationship with money. Building upon this can include:
- Taking a solution-based focus on problem solving.
- Acting with financial discipline and clarity. Know your goals and why they’re important to you.
- Getting a grasp on negative habits such as relying on credit or ignoring your money.
- Being aware of negative thought habits such as “I’m no good with money.”. Positive thoughts and affirmations can create a huge impact on your life and finances.
- Gaining trust in your decision making. When you believe in your growing ability to make good decisions, you approach spending differently.
- Utilizing visualization by picturing your ideal financial situation.
- Being mindful in spending AND saving. Be intentional.
- Forgive poor past choices and learn from them.
Practicing awareness and being intentional with your money mindset can make a huge difference.
Try these thoughts on for size: “How I take care of money is a reflection on how I take care of myself.” “I am taking responsibility for my spending.” “I am becoming wise about finances.”
Our skills around money include our earning, spending, investing, and saving habits. Living within our financial means is key to financial stability. I am not a financial advisor, and this article should not be considered financial advice. There are numerous resources available to guide you in building money skills and I encourage you to utilize this assistance as needed.
Cultivating a positive money mindset is about more than just numbers and budgets – it includes self-awareness of our beliefs and emotions surrounding money. Build confidence in your ability to have a positive relationship with money and prioritize improving financial skills. Every small step moves us toward a greater financial well-being.