The term money mindset can bring up a lot of different emotions for people. Some feel scared, some feel insecure, some feel overwhelmed. You also have those who feel confident, excited and challenged. Which of these camps do you fall under? 

Most likely, you fall under the first category. (Otherwise, why would you be reading this blog?) According to Standard & Poor’s Financial Literacy Report, Americans only rank 14th across the globe in financial literacy. Americans have little knowledge of how to budget their money, are in incredible debt from credit cards and student loans, and generally don’t know how to stop bad financial habits--or even understand how they began in the first place. This has formed our money mindset, or the overall beliefs and attitudes we have about our money.

Many of our clients come to us and say something like, 

“I’m terrible at managing my money.”

“I can’t seem to keep track of my money.”

“I hate dealing with money.”

These negative statements can greatly impact not only how we feel about changing our habits, but how we feel about ourselves. To get better at anything, we first have to believe we can. But how do we get from a negative to a positive money mindset?

1. Flip the Script

It sounds like a simple concept: stop saying bad things to yourself and start saying good ones. It’s a lot harder than it sounds, but it starts by recognizing when you are saying negative statements to yourself or out loud. Be aware of when you’re saying something negative when you’re talking about money. 

Then ask yourself, what can I say instead? For instance, if you’re creating a budget and you find yourself getting frustrated and saying “I really suck at this,” take a moment and recall what you just said. Be aware of what you just said, and make a note of it. Then say something like, “I’m new at this, but I’m working hard to get better at it.” 

Negative self-talk has a real impact on the outcome of our accomplishments. If you say you suck at something, you start to believe it and that mindset becomes your reality. The same can be said for positive self-talk!

2. Give Yourself Some Grace

Learning how to balance and budget your personal finances takes time. You’re unlearning learned behavior, which is tough to do. Bad habits are hard to break, but if you’re working towards breaking them, then pat yourself on the back! You’re doing the work and trying to be better, which is admirable. So tell yourself that! Say, “I’m working to be better with my money so I can be more responsible and resourceful.”

Understand that it will take time to become better, though. It doesn’t happen overnight and there will be setbacks. Even when working with KKS, you’ll make mistakes. But guess what? It’s all a part of the learning process! No matter how old you are, or what your journey has been up to this point, it’s going to take time. So be gentle with yourself, give yourself some grace, and when you have a set back, learn from it and move forward. 

3. Think About Your Life and How Your Mindset Developed

Knowing how your mindset developed can be a powerful tool. Maya Angelou said, “If you don’t know where you’ve come from, then you can’t know where you’re going.” To lessen your anxiety about money, give some serious thought about how money was managed when you were growing up, and how it may have imprinted in your brain. Here are some questions you should ask yourself to better understand it:

“Did my parents talk openly about money?”

“Did my parents fight about money?”

“Was money a source of stress in our family?”

“Did my parents teach me about saving my money when I had my own?”

“What is something my parents did with money that I want to do differently?”

“What is something I want to do that’s the same?”

Write down your answers and marinate over them. The conclusions you come to may surprise you, and open your eyes to your own money mindset.

At KKS Financial, we partner with individuals and families to help guide them through the world of personal finance. We have made mistakes, too, and are here to be vulnerable with you as we move through this journey towards better financial habits. Contact us today if you feel ready to take the first step toward true financial freedom.