It’s all too easy to dismiss every single successful person’s journey as being filled with nothing but an unachievable amount of luck and privilege. There’s some of that, sure. But, this isn’t the case for all successful people. For many, success is more about mindset than a privilege.
Having a positive money mindset can be incredibly beneficial for anyone trying to build and maintain financial success. Not only will it help you stay motivated during tough times, but it also offers clarity over when to take risks, and when to play it safe.
Knowing how to build and maintain a positive money mindset is essential if you’re going to stay on top of your finances. It’s a long road ahead and having the right mindset can help you stay the course—even through the toughest of times.
In this article, we’ll discuss the six best ways to build and maintain a positive money mindset. You won’t become a millionaire overnight, but you’ll be well on your way to financial stability, putting you in a prime position to take full advantage of any opportunities that (not so luckily) come your way!
Defining a Positive Money Mindset
We understand that you’re raring to go, but let’s not put the cart before the horse here.
Before we delve into what a positive money mindset is, it’s instructive to look at what it isn’t.
A positive money mindset is not about having an unrealistic view of yourself or your financial capabilities. It’s not about fabricating fantasies of having it all, nor is it naïve optimism that blindly expects success with no effort.
So what is it?
To put it simply, a positive money mindset is a belief that you can create wealth and financial security through hard work and smart decisions. It’s the mental framework that allows you to make well-informed choices while taking risks when necessary.
It’s a mindset that focuses on long-term goals and takes into account how small decisions can lead to large rewards or losses in the future. It encourages you to be proactive about money matters, rather than simply letting life pass by without taking any action.
A positive money mindset is also about understanding the power of compound interest and the importance of budgeting. It includes being mindful of your spending habits, focusing on what you can do to save for the future, and making sure that your investments are sound.
Now that you know what it is, let’s look at some ways to build and maintain a positive money mindset.
Learning a Positive Money Mindset From Scratch: 6 Simple Steps
There’s no one-size-fits-all approach to building and maintaining a positive money mindset. It’s an ongoing process that requires diligence, patience, and self-awareness.
You must always remember that your financial goals are unique, and should always be based on your own needs. Comparing yourself to others is wasteful and dangerous as it can lead to financial paralysis and overspending.
Not all of us have been fortunate enough to have access to financial literacy but it’s not too late to learn. Here are the six best ways to get started:
1. Make setting short-term financial goals a priority
Get-rich-quick schemes have been with us for a long time, and for good reason.
No matter how many news stories we read or watch about people losing their homes, savings, and pensions due to reckless investments or unexpected losses, we never seem to learn.
The prospect of making money quickly is simply too tantalizing for some of us to ignore. Who among us hasn’t had recurring dreams of, say, inventing a new product that will make us an overnight success?
But such fantasies can give way to disappointment and financial ruin.
Instead of looking for a quick fix, focus on setting short-term financial goals. You must be realistic about what you can achieve in the short term. Don’t set yourself up for failure with unrealistic goals such as becoming a major player in the stock market overnight.
Setting small, realistic goals you can achieve in a week or a month isn’t sexy, we know. But it is a surefire way to begin building and maintaining a positive money mindset. For instance, cutting your spending by 10%, or saving an extra $500 for an emergency fund are both measurable goals you can hold yourself accountable for.
It may not seem like much now but booking these small wins will help you build confidence and momentum—two powerful forces that will help you stay on track.
2. Understand your money values and live by them
Now that you’ve set some short-term goals, it’s time to think about your longer-term values.
We all have money values, even if we don’t realize it. Money values are the beliefs and attitudes that guide our decisions; they’re like a set of principles or guidelines for how we should handle our finances.
You must understand what it is that makes spending or saving money meant for you. Is it security? Prestige? Comfort? Independence? When you understand your personal money values, it’s easier to make decisions based on what’s right for you, rather than letting external pressures or fear of failure guide your financial choices.
Let’s take a look at two examples that illustrate the importance of having a strong money value system:
Say you have a job offer that pays less than what you’re currently making. It’s not the most ideal situation, but it will still enable you to save money and provide for your family. Knowing that security is important to you, you decide to accept the offer and start working towards your long-term goals.
On the other hand, you may have an opportunity to invest in a promising start-up that could potentially be hugely profitable. But if you have a growing family and you value stability, it might be wiser to pass on the opportunity and instead focus on building up a solid emergency fund.
By understanding your money values and living by them, you can stay focused on reaching your financial goals without compromising your principles—getting you closer to building and maintaining a positive money mindset.
3. Take some risks
With all that said, it’s important to remember that taking some calculated risks is essential for financial success.
For instance, if you’ve just started a business and you want to get the word out about your product or service, it may be worth investing in marketing and advertising—even if it means spending more than you were initially expecting.
The same principle applies to loans and investing. While it’s important to understand the risks involved, you should also remember that there are opportunities for reward as well. Refusing to take out loans or invest your money could mean that you’re missing out on potential returns.
The key here is to understand the risks and rewards while staying mindful of your personal money values.
4. Automate your savings
One of the best ways to build and maintain a positive money mindset is to automate your savings.
This means setting up an automatic transfer from your checking account to a dedicated savings or investment account on either a weekly or monthly basis. By taking this small step, you can ensure that you are consistently setting aside a portion of your income for the future.
Even if it’s just $25 per week, automating your savings will help you establish good financial habits and start building up a healthy emergency fund or retirement account.
Plus, having money automatically deducted from your bank account leaves less room for temptation. It’s much easier to stick to your budget if you don’t have the option of spending it in the first place.
5. Celebrate your successes
Saving money and building wealth isn’t easy. That’s why it’s important to take the time to celebrate your small successes along the way.
If you’ve just paid off a credit card bill or set aside enough money to cover three months’ worth of living expenses in an emergency fund. Celebrate it!
Rewarding yourself for your hard work is a great way to stay motivated and keep up your positive money mindset.
Plus, when you actively recognize your accomplishments and successes, it gives you something tangible to look back on and be proud of.
6. Surround yourself with positive influences
Finally, it’s important to surround yourself with people who have similar mindsets when it comes to money and financial success.
This means seeking out advice from individuals who share your values, such as friends and family, or joining a local investing club or online community of like-minded individuals.
By surrounding yourself with positive influences, you can learn from each other and become even more knowledgeable about the world of finance.
At the same time, these relationships can offer you emotional support and help keep your spirits up during tough financial times.
Ultimately, building and maintaining a positive money mindset is key to achieving long-term financial success. By following the steps outlined above, you can develop good money habits that will serve you for years to come!