Financial Friday #142: Manage your Money Mindset and Nail your 2023 Financial Goals!

Your Money Mindset Matters

Are you a glass-half-full person or a glass-half-empty person when it comes to your financial outlook? With soaring prices, rapidly rising interest rates, and talk of a looming recession, it is getting increasingly difficult to remain positive and believe that things will get better in 2023.

The belief that there is enough money and financial resources available to achieve your goals and live a comfortable life is often referred to as a mindset of financial abundance. People with this belief tend to focus on solutions rather than problems and see opportunities for growth and abundance in every situation.

On the other end of the spectrum is a mindset of scarcity — the belief that resources, opportunities, and success are limited and there is not enough to go around. This mindset can lead to feelings of anxiety, fear, and mistrust and can cause one to make choices based on a perceived lack of resources rather than on their true needs or values
The problem is that circumstantial factors heavily weigh on our mindset. If you were raised in an environment of scarcity or when times are tough like they are now, you can easily feel defeated when it comes to improving your financial situation. Overcoming this mindset is a huge roadblock and the starting point for financial reform, so how do you get there?

To develop a financial abundance mindset, you can try the following:
  • Appreciate the financial resources you currently have, and for the opportunities and resources that come your way.
  • Focus on solutions instead of problems when it comes to your finances. When faced with a financial challenge, look for ways to overcome it rather than dwell on not being able to get what you want.
  • Surround yourself with people who have a positive attitude towards money and who have achieved financial success — a relative? co-worker? celebrity? YouTuber?
  • Set financial goals and develop a plan to achieve them. This will help you focus on creating abundance rather than dwelling on lack.
  • Reframe negative thoughts and beliefs about money into positive ones. Instead of thinking "I can't afford it," try thinking "How can I afford it?"
  • Educate yourself about money management, budgeting, and investing. The more you know, the more empowered you will feel to take control of your finances.
  • Lastly, be open to new opportunities and ways to make more money. Keep your eyes open for ways to increase your income.

It’s easy to focus too much on the nuts and bolts of personal finance and overlook your mindset. For example, if you want to jump into self-directed investing, you must learn about the various mutual funds and ETFs available, how to assess and mitigate risk, manage fees, etc. However, a scarcity mindset can be so limiting that you may never ever consider investing in the stock market. Changing that mindset is obviously the first step, and it can be pretty hard to do!

It can also be hard to discern whether you have a mindset of scarcity or abundance — a little self-analysis might give you some great insights on your relationship with money and how you can start making some changes. It’s definitely a good starting point.


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