How to change your approach to money builds on last weeks episode.You can, and should change your approach to money to supercharge your finances. If you find you don’t handle money well, don’t save money, or just don’t know how to budget, here are seven ways to change your money mindset.
1. Firstly, Acknowledge your fears
We all have fears when it comes to money. Ignoring them doesn’t help anything though. Instead, you need to sit with them and get comfortable with them. When you recognize your fears, you can find ways to push through them. If you let fear run your life, you won’t make good financial decisions or any decisions because you’ll feel stuck in your tracks. Instead, acknowledge anything you’re afraid of with money and take baby steps to overcome the fears.
2. Secondly, Set goals
You can’t achieve financial goals if you don’t set them. No matter what you think about money and how you handle it, set financial goals
You can’t budget or save if you don’t know why you’re budgeting or saving. Write down your goals, both short-term and long-term. Make sure they are SMART goals
3. Thirdly, surround yourself with like-minded people
You are who you surround yourself with so it’s important to spend time with people that have the same money goals as you.
If you spend your time around people that complain about being broke and live a scarcity lifestyle, you’ll start doing the same. Instead, surround yourself with people that have the same beliefs about money that you do.
They don’t have to be identical goals, but at least surround yourself with people that have a positive money mindset and aren’t negative in general so you don’t start acting negative too.
4. Fourthly, stop comparing yourself
If you want to change your approach to money then don’t compare yourself to others. The only person you should compare yourself to is you. Don’t try to compete with anyone else or keep up with the Joneses. Set your own financial goals and find ways to achieve them.
You do what’s right for you and find ways to make your goals happen. But don’t let other people’s successes or failures change how you think about yourself. For example, if your neighbor buys a BMW, don’t let yourself feel less than because you drive a Toyota. You never know what type of debt your neighbor put himself in to buy that BMW.
5. Dream big and make it happen
Even if retirement is 20+ years away, dream about it. What will you do in retirement? At what age do you want to retire? Do you want to work or be completely free?
Even if you’re drowning in debt and don’t have any money in your emergency fund, believe that you’ll get there and make it happen.
6. Learn to be grateful
We’re all programmed to focus on the negative things in our lives, but what about the positives? Moreover, look for the positives you’ll find them, just like if you look for the negatives, you’ll find them.
Take, for example, your debt. You might look at it and think ‘I’m such a loser, I have $5,000 in credit card debt and I’ll never get out of it’ or you could look at it and say, ‘I’ve knocked my debt down from $7,000 to $5,000, if I keep going, I’ll be out of debt before I know it.’
7. Know your why
You can’t be financially successful if you don’t know your why. Think about the reasons you want to be financially successful.
In your money mindset do you want to create a future for you and your family? Does debt make you feel stressed? Write down your why and keep it posted so you can see it. When things get tough, always go back to your why.
Knowing how to change your approach to money, your money mindset has a positive impact on your personal finances. The way you think about money consciously and subconsciously has a big impact on how you deal with your personal finance.
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