Financial Goals to Shift Your Money Mindset
Most people want to change their financial situation. Unfortunately, they often fail because they treat the symptoms as opposed to the root cause: Their money mindset.
Your money mindset is made up of your beliefs and your attitude about money. It impacts the way you view money, feel about it, how you manage it, and more.
There are many factors that can impact your money mindset, but two of the biggest are our childhoods and personal experiences. Let’s take a look at a couple of situations to get a better understanding.
1. You Grew Up On a Tight Budget
Maybe you grew up in a home that did not have much money to go around. It could be that there was not enough money coming in or just that your parents valued saving what was left more than spending it. Whatever the case, it impacted your money beliefs. You might:
Spend every dime you bring in because- well- because it’s yours, and you can.
Save every morsel as your parents did.
Put everything you have into investments so it will grow. You refuse to barely get by.
It could be any- or none- of these, but the point is that it affected how you view money and what should be done with it.
2. You Grew Up Getting Everything
There are kids on the opposite end of the spectrum, too. They grew up with parents who handed them everything they wanted. If you fit into this category, you might have faced some trouble when you moved out. You might have continued the habit of just buying it all before realizing that you had responsibilities.
The ironic thing, though, is that how “spoiled” kids grow up is also a direct reflection of their parents’ money mindset. The parents likely either:
A.) Grew up with little and decided that they would do the opposite for their children, or
B.) They grew up being “spoiled” and carried on with their kids.
A person’s money mindset has the ability to impact generations.
3. Tragedy Strikes
Regardless of childhood, a tragedy of any scale can shift that mindset. There are plenty of examples to give, but I’ve always found the Great Depression to be a good teaching model.
Most people who lived through that- and even their children born later- have the money mindset that everything needs to be saved. That includes money, personal possessions, even items of no value.
That tragedy created a deep fear of not having what they needed again, so they save it all. My great-grandmother and grandmother were this way. It’s sad, but that one major experience influenced their money mindsets to the end of their lives.
It does not have to be a tragedy of such tremendous impact to influence you, though. It can be any incident that wakes some part of your brain up about a money aspect. Following are a few examples:
You are trying to pay for your week’s groceries at the store when your card is declined because you spent too much last night on fast food. Now, you don’t know how you will eat all week long.
A neighbor’s house catches fire, and you find out he doesn’t have homeowners insurance. Now his family lost their home, and he has no clue what to do. His horrible loss has convinced you to purchase insurance first thing in the morning.
I’ve seen money mindset shifts thanks to everything from not being able to buy a game station or pair of shoes to someone not being able to pay their kid’s school fees or pay for their aging parent’s care. The incident itself is not always what others would consider a “tragedy,” but that is what the person feels. And tragedy, my friends, is a strong motivator.
How to Improve Your Money Mindset
The good news is that no matter how long you have had that mindset, it can be improved. The following information can help you get started
Discover Your Money Mindset
It’s really hard to improve something when you are not certain what the problem is. You might be fully aware that there is an issue with your beliefs about money, but do you know what exactly that issue is or where it came from?
If you do, good job. Understanding your mindset is a big part of the battle. If you don’t, don’t worry. There’s plenty of time to make it happen. There’s just one thing you need to do first:
Get a journal. Or a notebook, an app, or whatever. Something that you can get thoughts into.
I prefer something I can actually put a pen or pencil to when it comes to pouring out feelings, but whatever works for you. I will say that it’s a good idea to have something you can easily take with you. Once you begin digging into your head, ideas and thoughts will start popping up all the time.
After you have your journal, find somewhere that you can sit relatively undisturbed for a while. Think about your feelings and habits with money. If you can’t figure out how to start, ask yourself questions like the following:
What was money like in my childhood home? Were we broke? Did we have all we needed?
Were my parents good money role models?
Is there something I wanted as a child that my parents would not get me?
Questions like those tend to get the mind flowing.
Let’s be reasonable, here. This is not about bashing our parents. As children, we all had our own views and ideas. Just because our parents said no to something we wanted does not mean they were mean or selfish or even broke.
They could have said “No” because they were saving for a vacation or birthday presents. The point is that this is not as much about their actions as it is your reactions. What did those experiences do inside of you? How do they affect your reactions toward money today?
Start writing and keep writing. You will start to see things emerge pretty quickly, but don’t stop journaling. Make it a habit so you can continue to dig in and work on any additional issues that come to your attention.
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Goals That Can Help Improve Your Money Mindset
Once you have discovered your money mindset- or at least started getting a clearer view- you can start working on improving. The following are some goals you can incorporate to help.
Start Dreaming
If the only view of money you have is your past and your present, that is what you will continue to replicate. If you want a change, you need to see a change. This is where dreaming and visualizing come in- you have to paint yourself a mental picture of the financial life you want.
Think about it- what do you really want? What do you want your finances to look like in six months? A year? Twenty years from now? If you can solidify that view in your mind, you will often find yourself subconsciously working toward that.
Start Believing
Okay, this one is a kicker. You have to go beyond dreaming- you have to believe. If you do not believe that you can have that life or that you are worthy of that life, your dream will remain a dream.
You can do it- I know you can. Start with daily affirmations. Hang them all over your wall if you must. Listen to recordings of affirmations. Surround yourself with people who believe in you.And don’t be ashamed of seeking counseling from a professional.
Some scars are difficult to work through on your own. A professional can help dig up those emotional and mental roots so you can get on a brighter path. This is your future and your life we’re talking about. There is no shame in getting the resources you need to make it a good one.
Read Financial Books
To get a new mindset, you need to gain knowledge and wisdom- preferably from others with a different mindset. Make it a goal to read financial books and blogs, and listen to podcasts. If you can only do one a month, that’s okay. Just get started.
Start Giving
There is something so freeing and joyous about giving to others. Whether it’s to your church, an international charity, or to the single mom down the street that’s doing her best- it’s an awesome thing to do.
In addition to helping others, it can absolutely shift your beliefs about scarcity and make you feel more confident. Oddly enough, giving it away can help you feel more financially secure.
Set Ongoing Goals
Start shifting beliefs by shifting habits- little at a time. You can do this by setting ongoing and realistic financial goals for your money. For instance, if you have always spent dime you make, you can start with the goal to save more.
Now, if you normally spend it all, saying, “I’m going to start saving,” just is not going to work- unless you add a little more to it. You want to take those words and turn them into a SMART goal. SMART financial goals are Specific, Measurable, Attainable, Relevant, Time-based. So, in this case, your goal should say something more like:
I am going to begin saving $5 of every check beginning this Friday in my ABC Bank savings account. I will set up automatic savings so the money will be immediately deducted from my checking account on payday.
Yours may be even more or less detailed, but the point is that this goal says exactly how much will be saved, when it begins, how it will be saved, and where it will be saved. And starting with $5 instead of $50 makes it a much more attainable goal.
Every month, make SMART goals for your money. Even the tiniest of goals can start showing big returns and a big mindset shift.
Make Self-Reflection a Habit
You have already started journaling, so self-reflection is not new to you, but don’t stop there. Make it a part of life. When you go shopping, try to dig a little deeper.
Let’s say you are standing on the shampoo aisle comparing different shampoos. Take a moment to ask yourself what you are thinking. Are you truly trying to determine which one will be best for your hair?
Maybe. More than likely, though, price is playing some part. Pay attention to what’s going through your head. What are you thinking? How does price affect your purchase?
I’ll be honest, I used shampoo here because I had a money mindset epiphany on the shampoo aisle myself. Regardless of what aisle your own, the point is to pay attention to your thought processes. You might discover even more about yourself.
Don’t Forget to Have Fun
Have you ever known anyone to go on a really strict diet? And did that person completely forget to add a cheat day? Well, I know many that have. They would be really regimented about their diet, but they would go at it so hard that they would burn out too quickly.
Next thing you know, they are eating every type of food they were not allowed to eat and the diet is gone. They felt like a failure, but the truth was they were just pushing themselves too hard. A cheat day here and there is always a good idea.
The point? Do not get so caught up in “fixing your money mess” that you stress yourself out.
I don’t care if you were raised with everything or with nothing- we all need to have a little fun. And we all want to live financially secure. Be sure- even on a tight budget- that you make some wiggle room to have some fun.
Conclusion
It’s nearly impossible to change your financial life without first changing your money mindset. If you are ready to make a huge shift in your life, we have just what you need at the Goalry Mall. From information and tips to credit-building loans and systems to organize your financial life- we are the partner you need to finally achieve financial security.