What is Your Financial Mindset?

Having a healthy financial mindset is key for financial wellness.  A financial mindset refers to one’s beliefs, attitudes and behaviors towards money.  It is reflected in the way you think about money, how you spend your money and how you make important financial decisions.  A healthy financial mindset helps one to make better financial habits. It is foundational for your financial future. 

Some key steps you can take to ensure you establish a healthy financial mindset are:

Step 1 – Consider your life experiences with money growing up. 

How did your parents manage their finances?  What messages were impressed upon you during these years? Did anyone try to teach you about money? Were your parents savers or spenders? Did they struggle with money? Were there times there wasn’t enough money for necessities? Now, as an adult, how do you manage your money? What changes do you need to make so you can have a healthy relationship with money?

Step 2 – Monitor your spending.

The best way to learn more about your attitudes and values about your money is to track your spending and your emotions as you spend.  Even doing this just for a month, will give you an idea of how and why you spend your money.  Tracking your emotions when you pay your bills, get paid, and spend money on yourself , allows you to determine if there are any “spending triggers” that can keep you from having healthy spending habits.  It also gives you insight in areas you may be overspending.

Step 3 – Shift your mindset to save money.

Take some time to write out your financial goals. These should be “SMART” goals, specific, measurable, attainable, relevant and time bound.   Think about where you want to be financially in five, ten and 20 years. By having goals written out, and the steps to take to accomplish these goals, it is easier to make that shift to saving money.  The goals keep you grounded in your financial mindset and  gives you encouragement as you approach those goals.   

Step 4 – Commit to your financial mindset.

Once you have worked through these steps, it is time to make the commitment to yourself to do the work.  Set aside an hour once a week to monitor your finances.  Create a spending plan to keep you on track and aware of where your money goes. Automate as much as you can – both spending and saving. Invest in your employer’s retirement plan. Invest in a Roth IRA. Pay off consumer debt.  Remember, you are in control of your finances and only you can make it happen.  Keep focused and look to where you are heading as you work through your goals.  And, in a matter of time, you will find yourself with a healthy financial mindset leading you to financial wellness.  As a Financial Wellness Coach, I can assist you with this journey. Contact me today for a complimentary Q&A call to get started.  Your financial future depends on it!

Failure to plan is planning to fail but steady progress leads to prosperity.