Money makes the world go ’round! Or so the still fantastic musical, Cabaret, says…but what does money make you do? Or better yet what does money make you think about? And when you think of money, how does it make you feel?
Answering these questions will lead you to understanding your personal money mindset. Your money mindset is not based on the actual amount, or lack thereof, in your bank account. It is about how you view money. More precisely, do you view it as a tool or a burden?
There are two major ways that people tend to view their finances – with either a Poverty (Scarcity) or Abundance mindset.
Poverty mentality is a mindset that people develop over time based on a strong belief that they will never have enough money or anything else for that matter. This mindset is driven by fear and can cause poor financial decision-making. With a poverty mentality, you set yourself up to fail by consistently making poor decisions that lead to outcomes that are limiting. For example, fear will instill a lack of confidence, leading to goals that fall far short of what you actually want and deserve, if you even bother to set goals at all.
Poverty mindsets often stem from our upbringing. After all, it is not just emotional and relationship issues that we get from our parents. Our first experiences with money management begins in the home. And we tend to inherit not just actual assets, but the emotions that surround the way we manage our funds and by extension, our lives.
Abundance creates freedom.
In contrast, there is the Abundance mentality. In this paradigm, people gravitate towards the belief that, “There is plenty out there and enough to spare for everyone”, a much more positive and optimistic outlook.
Abundance creates freedom. With an abundance mindset, you dream and think big. You’re a lifelong learner who always takes opportunities to add to your knowledge and skill set.
Like the poverty mindset, abundance mentality is learned behavior. If you were lucky enough to grow up in a household with a “glass half full” energy, then you probably learned that there are solutions to any and every problem and all it takes is some creative thinking to get to a solution.
Here are some ways to not only bring you into an Abundance mentality, the following tips can make sure you stay there.
- Organize your space, thoughts, and goals. When you take the time to clear not only your mind but your physical space, you will begin to see the open spaces available in your life. That will be your first awakening to the abundance that is already present. By becoming clear on what you want out of life, you’ll be surprised to see how clear the path to getting there can become. Once you have that clarity, you can start to create a foundation of openness.
- Exhibit gratitude. The more thankful we are for what we already have and the experiences we have lived, the more we are able to see that our choices create the framework of abundance.
- Begin again…and often. Adopt a beginner’s mindset, approach all aspects of your life as a novice. Are there ways that you have been phoning it in? Have you become complacent in your career, your family life, or in your friendships? View your life from “new lenses” and see what, if anything you can improve.
- Focus on the good. What brings you pride and happiness? And how can you spend more time and energy doing those things?
- Eliminate the not-so-good. On the flip side, cut all things (that you can reasonably cut out) that drains you or brings you down. There is no need to carry around baggage that does you no good.
Remember, you have complete control of your thoughts and actions. It is how you choose to view your finances that will ultimately lead to thoughts of abundance. And the best part of all- your thoughts are free!!