How your mindset influences your money
The way you think about money and your beliefs and attitudes can have a profound impact on your financial wellbeing. A positive mindset can help guide your financial behaviour in ways that help create a healthy relationship with money while a negative mindset can produce negative effects and leave you feeling that your money controls you.
Let’s explore how your mindset can influence your finances, with insights into cultivating a positive mindset for better financial outcomes.
Understanding your money mindset and beliefs
How you think and feel about money will significantly influence your financial habits and behaviours: how you spend, save, invest and approach your goals.
Your mindset will determine your ability to stay disciplined towards your financial goals, your capacity for trying new things and believing in yourself, and it will influence how you recover from financial setbacks.
Since your financial mindset is influenced by your upbringing, social norms and personal experiences, it means that 2 people in similar economic situations can have different experiences.
| People with a positive mindset | People with a negative mindset |
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Your mindset and your relationship with money
A positive mindset provides an abundance perspective and an excitement for what’s possible while a negative mindset leads to a scarcity approach, being fearful about having enough money and limiting your ability to enjoy life.
People with a positive financial mindset tend to do the following:
- Believe it’s possible to achieve their financial goals and make confident, informed decisions.
- Budget and stick to their goals. By achieving what they set out to do, it reinforces their self-belief and keeps them motivated and comfortable with the process.
- Save and invest for the future, understanding that if they don’t do it, it won’t happen on its own. They understand the value of delaying gratification and prioritising long-term financial goals.
People with a negative financial mindset tend to do the following:
- Impulse spend, fail to keep track of their money and are disappointed when it’s finished.
- Fall into debt cycles, taking on debt to pay other debt, spiralling further down the debt trap and negative thinking.
- Lack financial planning and put things off ‘till later’.
- Are guided by their emotions instead of rational thinking and planning, leading to poor financial decisions and regret.
Cultivating a positive mindset
Consider the following strategies to help you shift your mindset and promote positive financial outcomes.
| Understand your mindset and limiting beliefs | Change your story |
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Identifying your negative beliefs can help you change them.Have an abundance mindset |
See mistakes as lessons and start believing in your ability to change.Have a scarcity mindset |
| Educate yourself | Start small but specific |
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The more you understand finance, the more empowered you’ll be to make informed decisions. |
Have a clear vision of what you want to change and how. Small steps in the right direction can lead to sustainable progress. |
| Stop comparing yourself to others | Surround yourself with positive influences |
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Everyone’s situation is different, and their success doesn’t mean your loss. |
Surround yourself with positive-minded people and financial experts. |
Remember that changing your thinking is a gradual process. Be patient and kind to yourself as you work to develop a positive mindset about money. By aligning your thoughts, beliefs and actions with your financial goals, you can achieve a healthier financial life.
Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s).
Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.