Getting out of debt and staying out of debt takes more than just paying off your bills, and one of the most important parts of the process is understanding your money mindset.
Some people might think of this as woo woo b.s. but it isn’t….your money mindset can be described as your attitude, your beliefs, (positive and negative) around money and finances….your money stories.
…and these attitudes, beliefs and stories play an active role in the financial decisions you make, good and bad. But here’s the thing…these beliefs are not always yours….
I know…. crazy huh?
How Was Your Money Mindset Formed?
When you were young, and more or less a walking sponge…your parents, friends, caregivers and other life “teachers” imparted their financial beliefs to you.
Whether it was through words, or experiences…your attitude towards money and finances was being formed, probably even before you had any of your own actual dealings with money.
As an adult, although these beliefs and attitudes may be tucked away somewhere in your sub-conscious, your current financial situation, and your relationship with money may reflect what you “learned” so many years ago.
These beliefs can be positive or negative but if someone is struggling with money and debt, chances are, it’s the negative beliefs that are playing out. After all, if you believe something…you will act accordingly. As Henry Ford put it,
“Whether you believe you can do a thing or not, you are right.”
How to Change a Negative Money Mindset
Shifting from a negative to a positive money mindset begins with awareness… Be mindful of your thoughts, your behaviours, and your actions around money.
Only when you are aware of the stories that no longer serve you, can you change them.
When you think about money, what are some of the things you tell yourself? Take a few minutes to think about this, and write down your answers.
What are your thoughts and feelings about people you think make more money, or have more “stuff” than you? What about the people who have less?
This is an exercise in honesty, write down how you really feel…no one else has to see your answers…
Here are some common negative money stories… any of these sound familiar?
Common Negative Beliefs Around Money:
But these are only stories people tell themselves, and stories can be changed. It takes time and effort but it can happen.
Explore Your Childhood Money Stories
Take a few minutes to reflect on your childhood and ask yourself these questions:
With greater awareness of your beliefs and attitude towards money, you can begin to transform your relationship with money.
Rewrite Your Money Stories
Using your list of negative money stories, choose the top 5 that reflect your current reality, and no longer serve you. By rewriting these stories as positive affirmations, they will begin to impact your financial life in a positive way.
For example, let’s say one of your negative beliefs is, “I’ll never get out of debt.”
If this is the story you’re telling yourself, chances are, the choices you make, and your actions will reflect this story. And if you believe you’ll never get out of debt, guess what…you won’t.
Instead of repeating that old story, your new affirmation could be, “I will be debt-free.”
Create a journal and every day, once in the morning and again at night, write out your positive affirmations…keep writing the same affirmations until you feel your money mindset has truly shifted.
Take Control of Your Money One Small Change at a Time
Changes are more likely to stick when you take the approach of “slow and steady wins the race”. Trying to change too many things, too quickly will make it much easier to give up….
If you don’t normally pay attention to your financial statements, commit to taking few minutes a day to look through them.
Commit to track your spending, if you have no idea where your money is going…start out by just writing everything down…that’s it.
After you’ve created a habit of tracking your spending, commit to creating a spending plan at the beginning of the month, and using it.
Give to charity. Even if you begin with a few dollars a week, give….it’s a proven way to change your money mindset.
Allow yourself to dream, take a few minutes here and there, and allow yourself to visualize your ideal financial situation in detail, what does it look like, how does it feel, make it sensory, what can you smell, taste, touch, etc.? When the voice in your head starts crushing your dreams with it’s smack talk…thank it for it’s opinion, but let it go, that opinion no longer serves you.
Your Money Stories are Not Set in Stone
Your money mindset, and the stories you tell yourself, are not set in stone, the stories can be re-written.
Some stories may be so deeply ingrained, and connected to much deeper issues, that professional help may be required to help change the narratives, but every day offers a new beginning.
What happened yesterday, or at any point prior to this moment is past tense…it’s gone, and does not have to be repeated.
Your greatest super power is the power of choice, you can choose to take action, and make change happen.
In order to get out of debt, and stay out of debt it’s important to be aware of, and change any negative money stories that have the power to prevent you from reaching your financial goals.