Money Mindset is a by-product of your Money Story (a theory)

Your Money Story has been shaped by your parents’ relationship with money and the education they provided to you on money matters. It’s programming by our parents and relatives. Your self-talk about money and how much or little you value also plays a part in your Money Story.

Maybe your parents were frugal when you were growing up. Therefore, you may also be frugal, living with a scarcity mindset, worrying that you will never have enough. This is programming based on your parents’ relationship with money. If your parents had a traumatic experience with money, then you may have adopted some of this thinking. Do you catch yourself using the same terms your parents used? 

Regardless of your story, whether it was positive or negative, it has influenced how you feel about money, and it has also impacted certain choices and relationships.

Self-talk and your Money Mindset

Your money self-talk is very personal. Don’t feel discouraged if things aren’t going well for you right now – they can change at any moment. Self-talk is an important step in changing your Money Mindset.

What does your communication say about money? When you get an unexpected bill, what’s the first phrase that comes to your mind? Using phrases like “I can’t afford that” or “it’s too expensive” immediately limit and diminish opportunities available to you.

The reality is when you need something, you will make it a priority, and you will ‘find a way’ to obtain it. When you are aware of your thoughts and language, you will see how your programming and words either uplift you or keep you stagnant. Nothing is limited, and you can always grow. Try next time instead of stating “I can’t afford it”, use “I can’t afford that right now” and see how this positive talk will propel you towards a new level of thinking.

Knowing what you want and what you value with money 

Taking the time to discover what financial future you want will help you develop a plan to achieve the lifestyle you want. Knowing what you want and value will help you make the right choices aligned with your plan.

Start by setting goals for yourself that are realistic but challenging and go after them slowly, step-by-step! Developing good habits around managing your finances takes time, patience, and consistency over a long time, so keep that in mind. Money mindset influences the choices you make as well as the self talk about money which will also influence your relationship with it too. Your financial situation will have a significant impact on this area. Hence, it is important to focus on getting out of debt or building an emergency fund if necessary first before taking steps towards big goals such as buying a house or planning retirement. This will make choices in life more manageable. Such as it will be easier to say ‘no’ to things that don’t align with your overarching goal or are not of value to you.

What we value is very personal too. For example, some people value experiences, so these individuals will spend their money on experiencing new activities or destinations, others may value family time so will spend money on things they can do as a family to build memories.

Money Mindset can be influenced by your environment and social circle

It’s a known fact that if you’re surrounded by negative, critical, or even pessimistic people about money matters, it can be challenging to stay positive. However, if you surround yourself with people talking positively about money, this will eventually impact and influence you.

If you do not have any positive people around you, try using a podcast on money management, listening to experts, reading books and publications, immerse yourself in money talk.

You will find that these topics will be front of mind. Continue learning and expanding your knowledge. Be the leader in your group to discuss money, open the communication lines with your friends, make the uncomfortable, comfortable.

Money Mindset can be developed and altered 

Like any learned skill, Money Mindset can also be influenced, and you can improve and change it. For example, some people use mindfulness to help them develop their money mentality, such as visualisation, setting your emotional intentions, recognising triggers, and changing how you react to them.

Money Mindset is a process, and it will take time, so be patient with yourself. Using a combination of all the previous steps will shift your Money Mindset, and like any new skill, all it takes is practice every day.

Money Mindset is a process, and the rewards are empowering, especially when you have clarity of mind and a plan on where you want to take your financial future.