Whatever your views are on money, it is clear that it is an important part of our lives. The world we live in operates with money. You need it for the things you need to survive and the things you want in your life.
This is why your Money Mindset is such an important factor in how successful you are with your finances and therefore the kind of life you are able to create for yourself and for the people in your life.
But what does a successful Money Mindset look like? Here are the basic ideas and factors that can help you to create a successful Money Mindset
- Your Money Beliefs and Habits
What you believe about money will determine your thoughts, words, actions and habits when it comes to money.
There are so many beliefs about money that are passed down from generation to generation, some of which result in difficulties with money. Of course, this is not done intentionally, it’s just the way beliefs about anything work.
Take the example of the common belief that ‘Money doesn’t grow on trees. Well, it kind of does! Whenever there is a shortage of money in an economy, somehow more money is created from thin air! The point is, there is an awful lot of money in circulation. The real issue is the people with a certain type of Money Mindset are gathering it up and the people with another type of mindset are unable to do so. Believing that ‘money doesn’t grow on trees can determine how difficult a person thinks getting money can be and like any belief it can end up playing out that way.
This is just one example of a belief that can limit your success with money. It is important to not just turn a blind eye to these beliefs. They will be the overruling factor in the results you have with money over your life. And as mentioned above, these beliefs get passed down to future generations so you may end up installing these beliefs in the people you have influence over, in particular, your children.
Working on and transforming these beliefs is therefore important to you and those around you that listen to you. Identifying all your beliefs about money is the first step. Any thought you have about money has a belief behind it. Learn to capture these thoughts and therefore the belief behind it. Ask yourself if having that belief is helping you or hindering you. Working on changing those beliefs to empowering beliefs can really help to change the results you get.
- Get Money working for you instead of you working for it
The key Money Mindset that is essential to drum home is to
Get money working for you
A job requires you to give up some of your time and skills to earn money, i.e. you are working for money.
What you want to keep moving towards is having money working for you.
Money can be working for you when you save and invest in any way that means that it is generating more money. And the money that is generated…well that can also be used to generate more money. Compounding is a powerful thing when it comes to money.
Another way to have money work for you could be investing in businesses or having your own business. The aim with your own business is to get it operating with less and less of your own time so that you can use your time to generate further money or to spend your time in a way you choose.
- Spend Mindfully
If you want to get money working for you then you have to
Learn to spend mindfully.
Every time you spend it means the money is no longer going to be working for you as you have given it to someone else for it to work for them.
So you want to really consider whether you want to give your money away and ask yourself questions to help you spend mindfully. There is an opportunity cost every time you spend.
Think about what you are getting for your money, how does it fit with your goals and your vision for life. Make sure you know and understand what your goals in life are and what your vision is for your future. Then align your spending with those goals and your life vision. If you don’t you will end up spending randomly and in a way that doesn’t get you to your life vision. Be particularly aware of spending for instant gratification at the cost of future success with your goals.
Most importantly, get to a situation where you are spending less than you earn. One of the biggest reasons people in todays world have so many problems with money is the ease with which you can get credit. The reason for this, is that those who are lending the money realise how great a system it is for them to make their money work for them! They earn all the high interest that the borrowers have to pay. Of course, this means they want the system to encourage more lending and people to borrow more. As far as possible, you don’t want to be on the wrong side of that system!
So you can see that you have to be even more mindful today than ever before about your spending habits.
- The habit of saving
To be able get money working for you, you have to
Become excellent at saving money
By saving money you are gathering up all these little ‘money workers’ and then you can put together a strategy to get them working for you, generating even more.
Learn to pay yourself first, by saving. Make it a habit by doing it regularly. Set up a monthly savings account and if you can automate it, even better! Even if it is a small amount, the important first step is to create the habit. Then you can aim to increase the amount you save at regular intervals. Make it a proportion of your income and then keep increasing the proportion.
Set yourself different levels to reach as goals as this can be very motivating. Think of it as a game and to level up you need to reach each target. For example, level 1 could be saving 3 months’ worth of expenses, level 2 could be 6 months, level 3 could be saving x amount in a personal growth/education fund, level 4 could be your investment fund, etc.
These savings are what you need to get money working for you. Investing to provide an income and generate wealth will gather pace as you put more towards saving.
- Invest in yourself
The greater your skills and knowledge are, the better the service you can provide to the world
Investing in yourself is also a key element of a good money mindset. You attract money by being able to provide value. The greater the value you can provide the easier it will be to receive money. You can increase the value you provide by upgrading your skills, knowledge and the services you are capable of. So, upgrading your skills and knowledge, in a targeted way, can increase the value you provide to whoever you are serving and enable you to command a higher income.
These days people find it much easier to spend £1,000 on a new phone but much more difficult to justify investing £500 on a course or on coaching that will help them increase their income by much more than £500 over time. And that mindset results in problems with money.
Consider who you are trying to serve and what they really need and want. Then consider what skills and knowledge you need to be able to provide incredible value to them. And then invest in yourself to get those skills and that knowledge. Be sure to target the learning towards what will really help you to increase the value you provide as that will naturally provide you with many more options to increase your income.
Having a Money Mindset that empowers you and pushes you towards success can make a big difference to your life in todays world. In my experience of Money Mindset Coaching with clients there are always things that can be improved and worked on and the right focus and action can provide real life changing results.
Working on your Mindset is an ongoing thing. Development happens over time and each bit of progress provides the energy and motivation to do more. That’s why my free email course on Money Mindset Development provides people with one thing to work on with each email. This helps to not be overwhelmed and to keep building on each step with another solid step.
Take control of your financial future, develop a successful Money Mindset and start making changes that drive you towards the success you deserve.
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