Money Mindset

How Money Mindset Impacts Your Finances

Do you think the mindset is overly rated? Think again. If you ever read an autobiography of someone who came from a troubled background (and there are many… right from Dhirubhai Ambani to Lisa Nichols to Oprah Winfrey) and went on to become hugely successful. In that case, you will understand that the mindset got them there.


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Let’s come back to you. Do you frequently struggle financially? Be it earning money, spending, saving, or investing. If so, it could be partially down to your mindset. The way you think about your finances can have a surprising impact on the choices you make and, eventually, how successful you become.


Your thought become your experience!


If you’ve read “The Secret,” you’ll know what you think becomes what you experience. So, to be financially successful, you must believe you will succeed. There’s some truth to this, but how exactly does it work?


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Here, you’ll discover precisely how mindset can impact your financials.



The danger of a fixed mindset

Many struggle to change their financial lives because they’re stuck in a fixed mindset. That is, you believe your financial situation won’t change. It could be you think there’s no way to increase your income right now. Or, you might feel like your particular skillset holds you back. Or, your parents had nothing to show and you will be the same. Or earning money is very hard. Whatever it is, this fixed belief of how your financial life will be can dramatically hold you back without noticing it. You always think it is the external factor responsible for your financial struggle, but on many occasions, it’s your internal thoughts or fears you are projecting outward.


The key to progressing financially is to develop a growth mindset.


It’s easy to slip into a fixed financial mindset, especially if you’ve struggled for a long time. However, the key to progressing financially is to develop a growth mindset. With this, you open yourself up to becoming more financially stable.




Eliminating impulse spending

You’re less likely to partake in impulse spending when you have a healthy money mindset. You’ll be careful about the money you spend, helping you to achieve much more significant financial freedom. 


With impulse spending, you don’t really think about whether or not you need the item you’re buying. It could be that you’re trying to make yourself feel better, or you’re just reckless with your spending.


Training the brain to have a healthier relationship with money puts you back in control and helps you to avoid overspending and making impulse buys you don’t really need. 




Recognizing self-sabotaging thoughts

Self-sabotaging thoughts can significantly impact your financials. These include statements you tell yourself, such as “I’ll never get out of this debt” or “I’ll never make as much as I want to.” These thoughts can really hold you back. In fact, if you allow them to continue, there’s a good chance they’ll actually come true. 


What you tell yourself makes a huge difference to your mindset.


So, if you want to get better with money, you’re going to need to start replacing those negative thoughts with positive ones. 




Worrying about finances can make it worse.

If you’re struggling with your finances, worrying about it is only going to make it worse. Worrying doesn’t actually change anything, but it does add significant stress to your life. It’s a vicious cycle. 


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The trouble is, the more you worry, the more stressed you become, and that, in turn, affects your motivation and productivity. So, you’ll be less able to turn the situation around than if you were to remain calm and focused. 


 You can’t solve the problem with the same mindset you created it – Albert Einstein.




How you view money makes a difference.

Did you know that how you view money can also make a difference to your financials? If you avoid money matters, worship money, or focus solely on money status, it could be really damaging your money mindset. 


Instead of viewing money as the most critical thing in life, it’s a good idea to view it as a tool. The less power you give it, the more favorable your relationship with money will become. 


>> Missing Piece In Your Wealth Puzzle


These are just some of the ways your mindset can impact your financials. It’s common to feel helpless when it comes to improving our finances. However, this is often just a negative mindset you’ve got stuck in. If you can figure out how to change it, you can work on getting into a better financial position.