I think, no, I believe this should have been my first post as financial mindset is the basic fundamental to money success. Without the right mindset, our bank accounts, investing strategies, and credit scores aren’t as important. Many of us know what we’re supposed to do when it comes to basic money management, however, we often don’t follow those principles since establishing good habits is always easier said than done.
Developing a mindset that can lead us forward to financial success, as well as success in all parts of life, is the only way we will be able to earn wealth without inheriting it. And probably the only way to maintain it successfully, if you do inherit it.
The wise were right when they said, ‘Money is rarely about money, Money is all about behavior’. The mind is our guide. We follow how we think. We act from what we value and believe and we find values and beliefs by processing our experience in our minds. Our habits, thoughts, and feelings about money are going to determine how we spend our money and what our financial goals are and how wealthy we shall become.
So, what’s a financial mindset? A financial mindset is a predetermined set of beliefs about money. We all have them. Even if you can’t verbalize what your mindset is, it’s still there unconsciously. Some common money beliefs are ‘life’s all about what I own‘, ‘retirement is far away‘, and/or ‘my financial problems are my employer’s fault, he doesn’t pay me enough’. Recognize any of these in your own life?
The easiest way to know your mindset is by tracking the thoughts that come up each time we make a money decision. Since we make so many money decisions in our lives, doing this for just one week and then reviewing the results for patterns can be enough to deepen our awareness of our attitudes. With more clarity on our mindset, we can identify beliefs and habits that affect our ability to stick to (or even create) goals and plans.
Once we have clarity on our mindset, we need to determine what beliefs we are willing to stand by that will lead us to attain our financial goals and what beliefs we need to replace with something new. And always remember it is easier to substitute beliefs and habits than it is to delete them.