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Money Mindset is the foundation of understanding how money works and controlling it. – Suzy Darlen
Why your Money Mindset Matters
A wise entrepreneur wanted to prove a valuable point to her students. She took some of them with her and headed to a market area where they met a beggar who was begging. She pulled out $2,000 from her purse and gave it to the beggar.
The beggar leaped for joy, hugged, and thanked the entrepreneur in excitement. Even people who were passing by witnessed the act of kindness and thanked the entrepreneur lady.
Her students were amazed but held their fingers crossed because they knew it was an experiment. The next day, they all went back to check the beggar at the spot where he begs but realized he wasn’t there. They did the same for the next 3 days but didn’t meet him there.
The entrepreneur decided they wouldn’t be checking up on him until four weeks.
At the end of four weeks, they got there, and to the student’s surprise, they met the man begging.
Then the wise entrepreneur faced her dumbfounded students and said:
“You see, Poverty is a state of the mind”
Understanding Why Your Money Mindset Matters
You might not have heard this before, but your mindset matters in your approach to money, and can easily determine whether you end up rich or poor.
We could easily observe that from the story above. The beggar has a problem, and everybody thinks it was a money problem. Granted, it was a money problem, but the root of it was his mentality. It was a money mindset problem.
Before I started making money, I had to change my money mindset. And by changing my money mindset, I don’t mean I just woke up one day and suddenly changed my it, No!
What I mean is that I had to learn new things and get rid of the old ones that kept me poor.
I remember once I had to challenge myself and say,
“If I really know how to make money, then why am I not rich?” After coming to this realization, I embarked on my quest to seek help from the financial experts, please read the last part again–The financial experts.
What is Money Mindset?
A money mindset is an individual’s unique perception, belief, and understanding of money. These unique perceptions, beliefs, and understanding all together will create an attitude of which you will use to approach money. The attitude, in turn, drives how you make financial decisions.
For example,
- Some women unconsciously believe money is more of a man’s thing.
- Some people believe for someone to attain real wealth; he/she has to know someone at the top.
- Some others believe that for someone to be rich, he/she has to be willing to get his/her hands dirty.
- Many others believe that the system their under does not favor them getting rich because of their skin color, gender, etc.
- There are also others that believe they can make money, as long as they put their heart to it.
All these examples mentioned, are to show how people exhibit different attitudes toward money. These altitudes are their money mindset and will influence how they make financial decisions.
Whether you believe you can do a thing, or not, you are right – Henry Ford.
Understanding that the Problem is your Mindset
Remember the story of the beggar and the entrepreneur I told you? A lot of people don’t know that the problem of the beggar is more than just his empty bank balance, it was his money mindset. Don’t forget he wasn’t born a beggar, he became one overtime.
Except the mentally that made him ended up a beggar is addressed, he would always find himself returning to beg. What if he has a gambling problem? Or an addiction problem, or other negative money mindset problem? It doesn’t matter how much money he gets, he’ll keep using it to feed his addictions. In fact, that was how he ended on the street in the first place.
You too have a Money Mindset problem, yes you! That is why you think your bank balance is your problem. You’ve spent your life trying to change the state of your bank balance. You are easily lured by books, and posts that says “how to get rich quick”
Do you think that your problem is that you don’t have the money yet, but you’re trying to get it? But it’s been a very long time since you thought so. How far have you gone now? Have you started making those seven figures or is there a massive change in your finances? If your answer is no, then this is because your bank balance is not the problem, your money mindset, and decision-making is. Your bank balance is only a reflection of the financial capacity of your mind and its financial prowess.
Some people are more interested in changing their bank account balance than changing their money mindset. They forget to realize that the bank balance is only a reflection of the financial ability of their mind.
As someone that teaches and inspires people about money, I tend to take the mindset subject very seriously. This is why before I teach people how to make money, I first have to teach them about money mindset, and then I tell them the difference.
What is a Rich, and a Broke Money Mindset?
As seen in the case of the entrepreneur, and the beggar, there is a rich and poor money mindset. That means you can be rich but have a poor money mindset, or you can be poor but have a rich money mindset.
With a poor money mindset, you will find yourself exhibiting poor financial decisions, and not being able to increase your money. With a rich money mindset, you’ll find yourself making smart financial decisions, and being able to make money as you will.
A poor money mindset believes money isn’t in his control while a rich money mindset knows that he can decide his financial status, at any given point in time.
Characteristic of a Rich Mindset
- Believes that she can make money at any given point in time
- Is generous because she believes that more money can and will come her way
- Has positive financial altitude like self-belief, diligence, motivation, hard work, etc.
- Difficult or impossible to defeat—Can have ups and downs but have resilenced, and high mental fortitude
- Understands his limitations, and so she studies, and learn to acquire more knowledge
Characteristics of a Poor Mindset
- Accepts his failure in making money and blame others (parents, government, etc.) for it
- Is selfish because he thinks that he needs to hold onto his money because more might not come
- Has negative financial altitude like fear, low self-esteem, procrastination, discouragement, etc.
- Easily gives up – Has low resilient and mental fortitude
- Understands his limitation, and so accepts them and doesn’t aim to improve or surpass his boundaries.
How Your Money Mindset is Formed
Your money mindset is formed primarily from the same source your other mindsets are formed. That is, from your childhood experience, environment, tutors, mentors, and especially parents (because they are your chief tutors and guidance).
Our parents, relations, tutors, and friends gave us a lot when growing up. They even gave us the accent that we now speak (lol). They gave us many great things and moral standards. But sadly, in the areas that they fell short, they couldn’t give us the best training.
One such area is money. The school was meant to give us what our parents could not. That is why our guidance paid a lot to send us to school. But how many schools teach business education, and the act of making money? How many schools teach financial planning and financial management?
This is why most youth struggles financially after graduating from school.
If you are struggling in the financial part of your life, there is a huge chance that the people that influence you didn’t influence rightly in that department.
This does not mean that you should start blaming them for your financial predicament. If you do that you are further exposing your poor money mindset, and showing why you can’t succeed.
The point of tracing the source of your problem is to fix it, and not to give you an excuse to vindicated yourself and blame others.
Do you want to excel financially? Start by fixing your money mindset now.
You are meant to be better than your parents, and teachers. Where they fell short, they pray for you to succeed.
Say to yourself, “I am a difference-maker!”.
Why It is Significant to Understand Your Money Mindset
If you don’t understand and fix your money mindset, there is little you can do to help the financial aspect of your life. Even when opportunities come your way, you would end up missing out on them. Or you wouldn’t be able to make the most of it like others.
You’d try to do things that others have been proven to excel in, but you wouldn’t have the same success conversion as others.
Your friends that know you wouldn’t consider you for business because you subconsciously have those personalities that turn them off.
How to Change Your Money Mindset
You can change your negative mindset toward money the same way you got them in the first place. There is a process of mind change taught in the bible that is called renewing of the mind. It is more than just unlearning the things you knew before. It goes as deep as changing your attitude, and subconscious characters.
You have to renew your money mindset. To do this will take a lot of time, trials and errors, and commitments.
The first step is to accept that you are not good financially or where you want to be. The second step will drive you into seeking help by reading books and meeting people who are successful financial experts. Notice I didn’t simply say people who have more money than you.
Anybody can have money and still retain a poor money mindset. People can win a lottery, or even do illegal things to get money quickly, that doesn’t make them financial gurus or entrepreneurs.
The idea of this article is not to teach how to make money. The ideal is to build the right financial mindsets that would make money attracted to you like magnetism.
Four Approach to Changing Your Money Mindsets
1- Accept That You Have Negative Money Mindsets:
The first step to learning anything new is to accept the void in your knowledge. If you don’t, you will not be able to see the light because of pride.
You have to tell yourself that if you were really that smart financially or if what you know about finances works, then maybe it should have worked for you all this while. But it hasn’t, has it? It’s about time you begin to learn something new.
2- Seek Counsels From The Experts
Now that you know you need help, it’s time to seek counsel from the experts. You can do this by getting your hands on financial books that have been proven to work.
Go for seminars, and meet people who are financially sound. Get to observe and learn their ways. They are even good financial mentors you can subscribe to on YouTube. An example is DanLock.
Also, read our blog posts and visit our websites every day. The purpose of this blog is for your financial success, and they have been many amazing testimonies from our audience, all over the country.
3- Cultivate Good Financial Character
So many times, we find so many people having the talent to succeed but were cut short because of their bad character.
This is not only in finances alone, this happens in all aspects of life. You could easily cite an example in sports, education, entertainment, and more. I’m talking about examples of people who could have made it big but their bad attitude did not let them.
Characters such as laziness, pride, procrastination, nonchalant altitude, fear, lack of self-confidence, and more. All these habits have contributed to killing many dreams all over the world. Chief of them is procrastination which has killed billions of dreams since the origin of mankind.
Program yourself to delete these habits, and embrace the right ones like faith, confidence, diligence, hard work, honesty, patience, etc.
4- Have Good Financial Management Skills, and Tools
If you were able to fix your mentality, without financial management skills, you will still fall short. You have to have knowledge or education on finances.
This is why you see famous people paying huge money to have financial advisors. You can’t make it big without the knowledge of financial management. Some of the financial skills you need are stated below.
Financial Planning and Management Tools
A Financial Binder is a way of managing and planning for your finances by compiling your entire financial document into a binder.
If you want to read more on Financial Binder, click HERE
To purchase a good financial binder, click HERE
At this point in this article, you’re going to have many goals which is a great thing. But having goals is not just enough, you have to write them down, and plan. This would be a huge leap of faith toward achieving them.
A survey showed that people who have a Goal Planner tend to carry out and achieve their goals than people who don’t.
A good Goal Planner will help you set, and break down your goals into steps so that you can be able to follow up and achieve them.
If you want to purchase a valuable entrepreneur Goal Planner, you can click HERE
This Goal Planner is one great tool I use to plan my goals. I have experienced tremendous success as a result.
You would have heard of the importance of balancing before. Balancing is key to obtaining maximum productivity in any area of life. In the same way, you strive to balance your career with family or academics; you also have to learn to balance your financial activities. This helps you manage, and direct your income to the right arrears like paying your bills, loans, debts, and others.
When you do this rightly, you’d be able to avoid problems, and wasting money.
There is a professional financial tool to help you with balancing.
It’s a very effective tool, one that I use in balancing my finances, and I highly recommend it to you.
This Financial Balancing Wheel can help you with Budgeting, Debt, Savings, Credit Record, Basic Needs, Health Needs, Banking, Retirement
You can purchase it by clicking HERE
Conclusion
To conclude it all, I will like to urge you to take note of everything you’ve learned here and always come back to it.
Patience is a virtue that is very necessary for you to cultivate. And also, to Patience, add faith, and self-confidence. Believe you can make it. Yes, you can! I love you!
