Everyone has a mindset about money, whether they realize it or not. Basically, a money mindset is your unique set of beliefs and attitude about money. This mindset will drive the decisions you make about saving, spending, and handling money.
A money mindset could be unhealthy. For example, a person who is determined to get rich at all costs may end up making a lot of bad decisions. Or a compulsive gambler may lose whatever money he or she earns.
However, there are also healthy money mindsets out there. For instance:
- "I have the freedom to spend, but I can also tell myself No to a purchase."
- "I enjoy helping others who are struggling by giving generously."
- "I don't have to compare myself to others."
- "It is possible to achieve my financial goals."
Your money mindset shapes the way you feel about debt, your attitude toward others who make more or less money than you, how easily you can give, your ability to invest with confidence, which banking products you choose to open, and many other aspects of life.
But what if you realize that you need to change your mindset about money? How can you successfully do so? Here are 5 tips that can help:
1. Read Books that Will Influence Your Mind in a Positive Way
If you don't know where or how to start the change, investigate what successful people have done. Find books and articles that will influence your thinking towards a healthier view of money. There are many options out there to choose from, but one online source of information we recommend is Money Smart by the FDIC. You can visit the Money Smart website and sign up for their newsletter to continue getting the latest information!
2. Review Your Life Up Until Now
Take some time to ask yourself some soul-searching questions, such as:
- What did I hear and see about money growing up?
- What's one thing my parents did with their money that I want to replicate?
- What's one thing my parents did with their money that I want to do differently?
- What are the things in my life that are more important to me than money (i.e., family, volunteer work, a hobby, and so forth)?
As you reflect on these questions, determine what changes you need to make. You may want to write your answers down in a journal or notebook. When you commit something to writing, it becomes much easier to follow through with action.
3. Practice Generosity
That's right: just give away some money! The truth is, giving to someone else is the most fun you can have with money. It's also a great, time-tested way to change your money mindset from selfish to selfless. So think about a person or organization in need, and donate some of your money to others who may need it more than you. Who knows, acting selflessly could make you feel amazing!
4. Dream About Your Retirement
This is another way of saying: Keep your eyes on the prize! Every once in a while, picture your life after retirement in high definition. Think about all those passion projects you'll finally be able to pursue. Use that vision to motivate you as you plan for retirement today — and explore investment options that can get you there more quickly!
5. Believe that Success is Possible for You
It's true that some people have bigger obstacles in their story than others do. But the truth is, anyone can be a success story. Anyone can cultivate the self-control and discipline needed to achieve a healthy money mindset and reach their goals. Remember this mantra: Your thoughts become your actions, your actions become your habits, and your habits become your reality.
Over time, you can have a real impact on your future. That’s a powerful notion, isn’t it?
If you need some extra help to change your money mindset, lean on our insightful and empathetic experts at Third Coast Bank. And don't forget to take the practical steps needed to achieve your financial goals. For example, if you need to open an account to keep yourself accountable, you can enroll online in three easy steps!