With the new year fast approaching, you may want to change the way you think about your money. From seeking new financial advice to setting a functional budget, there are many small ways to make big changes to how you spend and save. One of the most fundamental is understanding your money mindset.

What Is Money Mindset?

A unique and personal thought process, this terms refers to how people think about money. It relates a person’s core beliefs about finances to the way they believe money functions in our society and in the world. It shapes what someone feels they can earn, what they’re capable of doing with those earnings, and the amount of debt and investments they feel comfortable accruing. Simply put, it’s an individual’s financial attitude.

How Does a Money Mindset Form?

Your experiences with money directly relate to the habits surrounding it. As children, we all observed the way adults dealt with money.

If it was a contentious topic that caused a lot of fights or something to be aspired for but never gained, you may have a negative outlook on what you’re capable of earning or how it should be spent. 

If you grew up in material comfort or money was discussed openly and calmly, a more positive relationship with money, spending, and saving is likely. Other factors like birth order, historical era, and education level can also impact your money mindset.

The Importance of Understanding It

It’s hard to make changes without understanding behavior. By assessing your money mindset and how it was developed, you can begin to shift it toward a healthier place. Learn to control your spending with proper financial advice if you’re a chronic shopper or rethink investment opportunities if you’re a habitual saver. Regardless of financial goals, understanding money mindset is a great way to help the journey toward peace of mind.

 

If you’re seeking financial advice in the Jupiter, FL, area, reach out to LeadLife by Design. Founded by author and blogger Shiela Wood, the company offers one-on-one coaching and a nine-month course that will help take a closer look at your finances and alter your relationship with money for the better. With courses starting on January 7, 2020, let Sheila and her team shift your money mindset and help you build the life you’ve always wanted. Sign up for a free one-on-one call or connect via their website or Facebook page today.