By Nethmie Dehigama
In last week’s article, we spoke about something called a “money mindset”. I’m going to elaborate on that a little more this week. If you did miss last week’s article, do not worry; you can find it on The Morning website.
What is a mindset and why is it important?
A mindset is a set of attitudes that you may have concerning a certain experience, situation, or area of life. Have you ever heard the quote, “What you think, you become?” That exists for a reason. The right mindset is a critical component in sports, business, life, and – you guessed it – money. There was a study done by Stanford psychologist Carol Dweck who found that children who believed that intelligence can be developed were able to overcome academic challenges better than those who believed that you have to be born intelligent. Another Yale and Miami study revealed that those with positive beliefs about growing old lived 7.5 years longer on average than those with negative perceptions. Now, do you understand the power of your mind and your beliefs?
What is a money mindset?
A money mindset is basically how you have defined money and how to deal with it, in your mind. Now, these definitions are likely built over time, and most often your money beliefs are quite limited. “Money is the root of all evil,” “money is hard to come by,” and “money does not grow on trees” are definitely phrases you have heard throughout your life, and chances are, these kinds of ideas lead to fear about finances, pessimism, and intimidation. The sad reality is that there are quite a few people out there with this type of thinking who do not even realise that they could have the financial security they desire one day if they make the right financial decisions.
Abundance versus scarcity mindset
A scarcity mindset is when you are so obsessed with a lack of something – usually time or money – that you can’t seem to focus on anything else, no matter how hard you try.
Do you currently identify with the following?
- Feeling guilty about past financial mistakes
- Feeling jealous of how others handle money or their wealth
- Feeling worried and upset about your current financial situation
- Believing there is not enough money to go around
- Making decisions in the short term and not the long-term
- Will focus on what they do have.
- Will be grateful for what they have.
- Will celebrate others’ successes because they believe another’s wins will not detract from their own.
- Are willing to learn from others’ successes.
- Will give back to society and to the world in whatever way that they can.
- Very often live in the present moment without being stuck in the past or being worried about the future.
- Ask yourself what your financial goals are, visualise them, and then write them down. Your idea of happiness does not have to be the same as someone else’s.
- Look inwards and examine your own limiting beliefs. What are the negative beliefs you have about money that are holding you back?
- Adopt more empowering beliefs. Believe you deserve happiness and financial security.
- Work on forgiving your past financial mistakes.
- Learn more, when you can, about money, and about how other people who have made it to their goals did so.
- Make a list of things you are thankful for and go through them and add to the list daily.
- When something does not go as planned, embrace it. If a problem comes up, reframe it positively as a challenge. This is a tough one, but worth practising, nonetheless.
- Surround yourself with successful people.
- Try to live more in the present moment.
- Truly believe that you can get to where you need to – you at least owe it to yourself to try.