A POSITIVE MONEY MINDSET

8 WAYS TO CREATE A POSITIVE MONEY MINDSET

Many of us know what we're supposed to do when it comes to basic money management - spend less than you earn, save an emergency fund, and invest for retirement.  However, establishing these types of good money habits is always easier said than done.

Money management, like many important things in life, requires discipline.  Add to that the guilt and shame that some of us carry when it comes to finances, and you have a recipe for money management misery.  Or, at least, a sense of why the "ostrich approach" can seem more appealing than tackling underlying issues.

Fortunately, there are some simple steps you can take to move from negative feelings and lack of discipline to a positive money mindset and great habits.

So, here they are:

1. Forgive Yourself for Your Financial Mistakes

There are likely few people who can claim that they have NEVER missed a credit card or bill payment, never gone on an impromptu over-spending session, and never raided their savings for no good reason.  If you are one of those people, you should probably be the next financial guru.  For the rest of us, it's time to practice self-forgiveness.

Forgiveness is a powerful tool because it prevents us from being a prisoner to our past.  If we shift our focus away from shame we can make room for better practices and a healthier attitude towards money.  It's important to acknowledge and accept what has happened. Make your apologies to yourself (and those around you, where necessary) and focus on moving forward.

2. Become a money mindset sponge.

One of the simplest things you can do to begin creating a healthy relationship with money is by surrounding yourself with others who are already living by those values.  You are the average of the five people you spend the most time with, so when you absorb content created by those who are already deep in a strong money mindset, you’ll begin to adopt those qualities as well.

There are dozens of experts who regularly provide free content on the topic, such as YouTube videos, podcasts and live streams.  Commit to digesting one hour of money mindset content per day, whether that’s listening to a podcast episode at the gym or giving yourself and hour to read before bed at night.

Making this simple shift will drastically disrupt your perspective and begin to eat away at the limiting beliefs that are holding you back from making money.  Change the people you surround yourself with and change your life.

3. Get the right mentors in your corner.

Pause and think about who you typically take advice from.  Your parents? Your friends?  Your business partner?  Your co-workers?

From now on, challenge yourself to only seek advice from those who have already achieved what you want to achieve, period.

Of course, that process begins with getting clear on what you want.  Do you want just a little bit more than you have right now?  Do you want generate abundance lifestyle that will allow you to do more for your family and others?  Do you want to grow your business to seven figures in revenue?  This list could go on.

Once you do gain clarity, seek mentors who have already achieved what you want to achieve and spend your time with them.

The truth is, it’s hard to change the way you perceive the world when you’re surrounded by people who are stuck in a “so-so” mindset.  Mentors who are truly invested in your growth activate change within you by sharing their mental roadmaps to financial success, helping you develop a new lens to view the world through and showing you how to turn that internal fire into strategic action.

Trust me, it’s easier to follow in the footsteps of someone who’s already done it than trying to tackle these changes alone.

Find the right mentor who will help get you where you want, and need to be, in a fraction of the time compared to doing it yourself.

4. Understand Your Money Mindset

You may think you know your attitude towards money, but it's possible you're not fully aware of how your views are shaping your decision-making.

I suggest tracking the thoughts that come up each time you make a money decision.  Because we make so many money decisions in our lives, doing this for just one day and then reviewing the results for patterns can be enough to deepen your awareness of your attitudes. With more clarity on your mindset, you can identify beliefs and habits that affect your ability to stick to (or even create) goals and plans.

5. Stop Comparing Yourself to Others

In this age of social media, reality TV, and celebrity magazines, it's far too easy to get sucked into making comparisons.  We compare ourselves to other family members, to our friends, to celebrities, and to fictional characters on TV.

This isn’t a good way to spend your time for several reasons:

• You're comparing what you know about yourself to what you see of someone else (i.e., probably only their best side that they choose to show you).

• You don't know the intimate details of the other person's finances.  Someone may appear to have a fantastic life filled with fabulous clothes, vacations and other fun stuff, but it could be fueled by credit card debt...or worse!

• When you make comparisons and find yourself lacking what others have, you're diverting attention (and, potentially, activity) away from focusing on your own finances and aspirations.

So, create attainable goals for yourself and compare yourself to those. Celebrate the wins and update your goals as you reach them.

6. Create (and Maintain) Good Habits

Once you have some goals on the prize, it's time to establish the habits that will ensure you meet them.  If you've never dug deep into your income and expenses or created a budget, this is a good time to try that.  Understanding where you're spending your money will help you determine where you can save more, if that's your goal.  This awareness will also help you pick goals that are achievable - even if they're a stretch - so that you can build on your success rather than end up paralyzed by defeat.

One particularly effective habit is committing to a set time - one hour per week - to review your finances and monitor your progress.  If one hour seems like a lot, it's worth noting that millionaires spend an average of 8.4 hours per month managing their money.  That works out to about two hours per week.  You can use online financial management platforms, like your bank account app, or a simple spreadsheet - just make sure to review everything regularly.

If you're in a relationship, pick a mutually beneficial time for both of you and ensure you will be fully present for the duration of the conversation.  Granted, money discussions aren't always smooth sailing for couples, and arguments can ensue.  However, pushing through the discomfort can be the difference between staying together or splitting up for some couples.

Even if you decide that one of you is going to be the primary money manager, make sure to get on the same financial page and agree to goals so that there's no miscommunication.  Once you both have a clear picture of the finances, figure out together how you want to delegate money.

7. Optimize Your Budget for Happiness

The word "budget" can fill people with dread because it brings to mind restrictions.

But here’s a thought for you, good boundaries can set you free.  This is because knowing where you're spending your money - as opposed to having no idea where it's going - is a far more empowered place to be.

That awareness ensures that you can tweak your spending so that you're directing your hard earned cash towards what matters to you most.  Sometimes we spend on things that don't actually make us happy just because we think we should.  How much of what you're spending is for you and your goals?...What are you spending on that truly brings you joy?

A great guideline for budgeting is the 50/30/20 rule.  This comprises directing 50% of your earnings to needs (housing, food, gas, medicines), 30% to wants (vacations, that painting class you've always wanted to take), and 20% to saving.  If you're carrying debt, that 20% may be directed to paying that off first.  If you keep the 30% and 20% separate from the 50%, you're probably going to be OK without having to review everything on an itemized basis every month.  Plus, you can go wild with that 30% and spend it on whatever you want!

8. Practice Gratitude and Generosity

Last but not least, daily affirmations and gratitude for what you do have can be really powerful, as well as watching for opportunities to bless others around you.

I suggest keeping a journal: Start by writing down one thing every day for which you are grateful (financially and personally), and then list how you’ve been able to bless others as well.  Return to your gratitude journal any time you feel overwhelmed or negative about your own finances (or any situation in life).

The simplest practices can make all the difference.  The entire foundation for your success is how you perceive what’s possible.  If you can create an unshakable mentality and heal your lifelong soap opera with money, you will not only achieve the good, you will achieve more than you ever thought possible.