Money mindset is becoming a more common term on social media, on blog posts (hello!), and maybe even in friend groups. That's a good thing since our money mindset impacts every financial decision we make! But it’s likely you are still wondering:
What is a money mindset?
A money mindset is the way you think, feel, and behave towards money. It includes the thought patterns and belief systems that affect how you manage money. And unless you’ve worked on shifting your mindset, these patterns are often the ones you developed in childhood.
Your financial mindset falls somewhere on the spectrum between a positive (or abundant) mindset and a negative (or scarcity) mindset.
An abundant money mindset is the belief that there are plenty of financial resources and opportunities for everyone, including yourself. People with a more positive money mindset view money as a tool for growth, freedom, and possibility. They tend to see money challenges as temporary problems, not as permanent barriers.
This money belief system leads to:
Confidence in financial decision-making
Willingness to take calculated risks
Generosity with resources and knowledge
Gratitude for current financial situation, even while pursuing more
Generally, it’s the belief that you will be financially stable and secure and that you can achieve financial freedom.
A scarcity money mindset is the belief that financial resources are limited and hard to get, leading to fear or lack. People with a more negative money mindset often feel there’s never enough money, leading to stress and insecurity about money.
This money belief system leads to:
Hoarding, oversaving, and/or fear of spending
Avoidance of financial risks
Constant worrying about running out
Competitive attitude toward money, seeing others’ success as a threat to their own
Generally, it’s the belief that you will always struggle with money and will never have enough to feel secure or achieve financial stability.
If you’re reading this thinking, “Well shucks! I have a scarcity money mindset, what do I do?” Don’t worry, a financial mindset shift is possible! I’ve seen incredible mindset transformation in my coaching clients, again and again. Not to mention my own transformation. And if they can do it and I can do it, there’s no reason you can’t too.
So, how do you improve your money mindset?
Identify and Challenge Limiting Beliefs: Recognize negative thoughts like “I’ll never have enough money” and replace them with empowering beliefs like “I can create financial success.”
Practice Gratitude: Focus on what you already have, rather than what’s lacking, to shift from a negative to a positive outlook.
Set Clear Financial Goals: Define specific, achievable financial goals. Setting clear and attainable goals can help change the belief that you cannot improve your financial situation.
Seek Out Financial Education: Increase your financial literacy by learning about budgeting, investing, and saving. This can boost your confidence and knowing better helps you believe you can do better.
Surround Yourself with Positive Influences: Surround yourself with people who have a positive relationship with money and steer clear of those who promote scarcity thinking. Discussing money with your partner is a great place to start. Not sure how? Use our Money Date Workbook to guide conversations.
Celebrate Small Wins: Acknowledge financial milestones, big or small, to build momentum and strengthen an abundant mindset.
Use Money Affirmations: Repeat positive financial affirmations daily, like “I am worthy of wealth,” to rewire your thinking. You Are A Badass at Making Money is my favorite book for this.
Be Generous: Practice giving, whether it’s your time, knowledge, or money. This cultivates abundance and reinforces the belief that there’s always more to share.
Want to improve your money mindset? Financial coaching can help! Schedule a free discovery call to start making lasting changes today.
How does your money mindset impact your financial situation?
Some people may be unsure or unaware of how much their mindset affects the way they handle money. After working with over 400 clients, I’ve learned that how we feel about money influences our thoughts, which then shapes our actions creating financial habits. Here are a few examples of how your money mindset may affect your financial decisions:
Budgeting: A scarcity mindset might lead to strict budgets, cutting out all fun. An abundant mindset lets you enjoy life while still saving and handling essentials. Use this Buy or Bye Worksheet to see if a purchase fits within your abundant budget!
Saving: With a positive wealth mindset, you’ll see saving as a way to build a secure future. A negative mindset might make you avoid saving, thinking it won’t make a difference.
Spending: People with an abundant mindset spend money on things that bring joy or support their goals. A scarcity mindset might lead to impulsive buys or extreme frugality out of fear of missing out or losing money.
Debt Management: A healthy money mindset helps you manage debt by viewing it as a temporary challenge. A scarcity mindset can cause anxiety, making you avoid or delay paying off debt.
Investing: Those with an abundant mindset are open to taking smart risks in investing, seeing it as a chance for growth. A scarcity mindset might make you shy away from investing out of fear of losing money and missing out on future gains.
Income: If you have an abundant mindset, you’ll feel confident asking for a raise or negotiating a job offer. A scarcity mindset may cause you to accept less or undervalue yourself, thinking there aren’t better opportunities.
What are common money mindset blocks and how do I overcome them?
Let’s break it down. Here are some common money mindset blocks and ways to overcome them:
Belief: “Money is the root of all evil.”
Block: This negative belief can cause you to feel guilty about wanting or earning money, leading to self-sabotage or avoidance of financial growth.
How to Overcome: Reframe your thoughts to understand that money is neutral — it’s a tool that can be used for positive impact, like providing for your family, supporting causes you care about, or building a fulfilling life. Focus on the good money can enable.
Belief: “It’s too late for me to start saving or investing.”
Block: This limiting belief can create a sense of defeat and discourage you from making meaningful financial changes later in life.
How to Overcome: It’s never too late to start! Whether it’s retirement planning or paying off debt, start where you are and create a step-by-step plan. Small actions now can still lead to significant long-term gains.
Belief: “I’ll never be good with money.”
Block: This belief leads to a fixed mindset, making you feel incapable of learning or improving your financial habits.
How to Overcome: Shift to a growth mindset by reminding yourself that financial skills can be learned. Start with small steps like creating a budget or automating savings, and celebrate each milestone to build confidence.
Belief: “Rich people are greedy or selfish.”
Block: This belief can create a subconscious aversion to wealth, preventing you from pursuing financial success because you don’t want to be associated with negative stereotypes.
How to Overcome: Redefine wealth by focusing on how it can enable generosity and positive change. Seek out examples of wealthy individuals who are philanthropic and impactful, and use them as inspiration.
Belief: “I’ll always be in debt.”
Block: This belief creates a sense of hopelessness and can cause you to avoid taking action to manage or pay down debt.
How to Overcome: Break down debt into manageable steps by creating a plan, like the snowball or avalanche method. Focus on small victories (like paying off one account), and visualize a future where you are debt-free.
Summary
Your money mindset is the key to how you handle your finances. It influences your thoughts, choices, and because of that, your financial outcomes. Whether you have a scarcity mindset that holds you back or an abundance mindset that helps you grow, improving your relationship with money can create long-term success. By challenging limiting beliefs, setting clear goals, and surrounding yourself with positive influences, you can develop a more abundant mindset. This shift will lead to better financial decisions, less stress, and a path toward financial security and freedom. Remember, it’s never too late to change your perspective on money and unlock its potential in your life!
Ready to take charge of your financial future? Let’s work together to shift your money mindset and create a personalized plan to reach your goals — whether it’s paying off debt, saving more, or investing confidently. Schedule a free discovery call today to see how 1-on-1 financial coaching can transform your finances and your life!
Disclaimer:
This Article contains links to other websites or content belonging to or originating from third parties or links to websites and features in banners or other advertising.
This Article contains links to affiliate websites, and we receive an affiliate commission for any purchases made by you on the affiliate website using such links.
Comentários