Let me ask you a question: how do you look at your money? Whether becoming a multi-millionaire or a humble homeowner, you first need to think you can do it. Believing it can happen is just the first step–you need to make it happen. You can’t do this without having a strong money mindset.
A money mindset is how you think about your money. It’s how you look at your money and how you choose to use it. To find out your money mindset, you need to understand how you look at money. Do you think that money is best spent? Saved? Invested? Or something else entirely? If you need help figuring out your current money mindset, take my financially savvy quiz.
It would help if you got into the right mindset to achieve your financial goals. To do this sustainably, you need to balance long-term saving and short-term spending. That way, you can build good habits to achieve your money goals without sacrificing too much fun in the meantime. Here are ten easy steps to follow to get into the money mindset to help you achieve your goals.
Everybody wants money, but for different reasons. In my case, I want to earn money because it allows my husband and me to travel and enjoy our lives. What about you? Deciding what you value will help create your money mindset, but more importantly, it will help…
Financial goals are one of the most critical steps in establishing a money mindset. Your goals, like your values, will help you make small financial decisions, like whether or not to purchase something. Without goals, you may save money without a purpose–which often leads to impulsive purchases. If you need help setting financial goals, check out my article here.
There are two types of goals that you need to set, and these are:
These are financial goals that you want to achieve within a relatively short amount of time. It can be something simple, like saving enough money to take a vacation or reaching a certain amount in savings. Reaching these goals will help teach you the good habits necessary to achieve bigger goals.
These are goals that take a considerably longer amount of time to achieve. Some examples of long-term goals include buying a house, retiring, or saving your child’s college fund. Having these goals and working towards them will help you put your money to good use.
When you’re building your money mindset, you will eventually make a financial mistake somewhere along the way. These money missteps include spending too much money on food, entertainment, or on yourself. When you make a mistake, acknowledge it as one and then learn from it. Dwelling on your mistakes too much can dishearten you and make you forget your money mindset.
The enemy of a healthy money mindset is a toxic one, full of financial insecurity. Financial insecurity happens when you feel bad about your financial situation, usually due to many factors. For example, you might feel insecure because you’re “behind” compared to your friends. This is a harmful money mindset that can hurt you. If you need tips on how to beat financial insecurity, check out my article.
Having a certain amount of money by a certain age is a good benchmark. It helps you determine if you’re on track to retire and live a comfortable life. That’s all it is, though–a benchmark!
Everybody has a different background which affects how easily they can achieve financial goals. Instead of living up to these “standards,” focus on achieving your own goals.
When you’re building your money mindset, you want to get inspired. Inspiration can help you start the process of changing your lifestyle. An easy way to get inspired is to listen to other people’s stories regarding their financial journeys. Alternatively, you could use a financial vision board.
Anyone who wants to change their lifestyle will tell you that the most challenging part is staying disciplined. This is always a challenge, whether it’s managing your weight or wealth. The best way to stay disciplined and keep your money mindset is to have good financial habits, such as:
When it’s payday, what’s the first thing you do with your money? It always helps to immediately deposit your money into your bank account upon receiving it. That way, you won’t give yourself a chance to overspend.
Budgeting is an essential financial habit but an incredibly helpful one. Checking your budget every month and allocating every cent teaches you to be wise and disciplined with your money. If you don’t, you should check out our article on some of the best budget apps.
You probably have a means of tracking your finances (and you should if you don’t already.) However, updating it regularly can be a pain, especially if you work, commute, and run errands every weekend. busybody. It’s important to keep your tracker up to date to stay on top of your finances.
Not everyone among your loved ones will understand wanting to change your money mindset. This is okay–as mentioned previously, everyone has different backgrounds and views toward money. However, you are not their cash cow, and they aren’t entitled to your savings. That’s why you need financial boundaries.
When changing your money mindset from prioritizing spending to saving, you need to learn delayed gratification. This means making short-term sacrifices for more rewarding long-term gains. There are many examples, like staying in for a weekend or putting a vacation on hold. Even if you think like a millionaire, you won’t have the money like one until you get there.
There’s always a new tip or two for you to learn. That’s why you should join the money squad. As a member, you’ll get financial advice every week completely free of charge, too. If you want in, click the link and sign up! It only takes a few seconds, but it’ll give you exclusive and potentially life-changing financial advice. So what’re you waiting for? Sign up today!
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Dollars Makes Cents by Shaquana, Financial Coach and Wealth Expert, resources helps professional millennial women of color with the tools and skills they need to eliminate their debt, amplify their savings, and build generational wealth — without having to compromise their lifestyle.
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