This post may contain Affiliate Links, which means we may receive a commission if you click a link and purchase something. Please check our Disclosure Policy for more details.
Money is integral to our daily lives, so having a healthy money mindset is just as important as taking care of our health!
Your money mindset is your beliefs and attitudes about money. That means it will be different for everyone. Your priorities to save, spend and invest, as well as your financial goals will be different than everyone else.
But having a healthy money mindset is important at any stage of wealth and life. You don’t need to wait till new years, or your birthday, or that promotion to start becoming better with your money.
It is tempting to push off taking care of your finances or setting financial goals to a later date, when you feel ready.
Having a healthy money mindset can help create wealth through consistent action. Ultimately, this can help you navigate and reach your financial goals.
Building a healthier money mindset is a result of consistent habits and actions that come together to form our financial well-being.
The most important step is to recognize what you need to do to improve your money mindset. Recognize that on Day #1 you will be perfect – no one is. But the incremental changes will make it worthwhile!
How to create a better money mindset?
1. Awareness for a Healthier Money Mindset
Know your key metrics:
- how much you earn, and
- know how much you spend,
- what is your credit score,
- what you have saved up for emergencies.
Start there.
Awareness is the first step, in creating a better money mindset, because it will help you get better at creating and maintaining your money goals.
The more you know about your own situation, the better equipped you will be with creating the next step to help with your money.
Whether it’s through diligent line by line budgeting, or keeping an eye on your checking account and making sure it’s not in overdraft, you should at least have an idea of how much you have to your name today.
2. Know your weaknesses & use them as opportunities
Do you feel overwhelmed by money? Is it because of a lack of information? Is it an emotional trigger for you?
Once you are aware of the areas of your money that you struggle with, the next step can be to figure out how to overcome those blind spots, to work on them.
A healthy money mindset is not about kicking yourself because you have weaknesses. But rather, be aware of your weaknesses, so you can focus on your strengths and get help for the rest.
Delegate / Hire / Educate
There are many ways to overcome your weaknesses, and you do not have to do it all!
Whether that means you want to delegate the responsibility to your partner, hire a financial coach or advisor, or actively seek out resources to educate yourself. There is always an answer to get better with your money blind spots.
3. Create boundaries around money
Money can be a stressor in your daily life. You don’t need to be obsessed with money to get better at dealing with your own money. You don’t need to give up all your free time trying to manage your money better.
Choose when and where you will evaluate your plans. Are your plans going the way you planned? Were you over or under ambitious with them?
It is okay to set boundaries because otherwise, you might also suffer from money burnout.
4. Figure out what matters to you
These days there is so much information out there, which means that is it so easy to get overwhelmed and eventually sidetracked from your goals.
Read and learn only what you need now, skip over the rest (or bookmark it for later).
If you are going to be intentional with money you have to be intentional with learning about it. If it doesn’t fit your goals or your lifestyle, skip over it.
5. Find ways to be consistent
Staying consistent and committing to executing your plan is really key in getting what you want out of your money plan.
Discipline throughout the year is important. This list of ideas to simplify and organize your finances can help!
This could mean automating your investments, or it could mean rewarding yourself when you’ve reached a goal.
Just make this is not a new year’s resolution that fizzles on February 1st.
6. Don’t try to be a perfectionist
Yes, you should avoid impulse purposes, and be weary of your vices, but I guarantee you will not be perfect on Day 1.
So take the necessary steps to give yourself the room to fail.
Plan for potential impulses.
The holidays are a perfect example for when it’s easy to overspend on gifts or go out for social dinners, that were out of budget.
Plan for these impulses. And if something unexpected does come up, don’t sweat it.
Pick your vices
If you have a vice, indulge. Don’t give up your daily latte if that is what is bring you joy. Maybe instead way is to pack your lunch 3 days a week!
7. Plan and work on your money goals
If you fail to plan, you are planning to fail.
Benjamin Franklin
Creating a plan is the first thing you should do.
Write down actionable steps that will help you get to your destination.
Create achievable goals that don’t turn your life upside down tomorrow
Don’t promise yourself things that are impossible, or unsustainable in the long run.
8. Talk about Money
Create a safe space to talk about money.
Having a trusted friend or family member to talk openly about money can be useful. Especially when things don’t go according to plan, or when you feel stuck!
If you have a partner where you rely on each other’s income, make time to talk about money.
That might mean setting aside time in your calendar every quarter to talk about how you’re faring with your goals,
9. Embrace a Learning mindset
Unfortunately, becoming an adult comes along with all these money responsibilities. Often these were skills we didn’t learn in school!
Start this, knowing that you are in it to learn. The answer you’re looking for is out there (and it’s probably on Google).
Look at money as a life long journey. Your situation will change, adopting a learning mindset will only better equip you to deal with those changes better.
10. Take charge
Whether you hire a financial advisor, delegate this responsibility to your partner or yourself, it is still important to have at least a basic understanding of your money situation.
It’s your money after all!
Final Thougths
These ten tips will help you create a healthier money mindset.
- Awareness for a Healthier Money Mindset
- Know your weaknesses & use them as opportunities
- Create boundaries around money
- Figure out what matters to you
- Find ways to be consistent
- Don’t try to be a perfectionist
- Plan and work on your money goals
- Talk about Money
- Embrace a learning mindset
- Take Charge
A better money mindset can help you jumpstart your way to the financial stability you desire. Having a healthy money mindset can help create wealth through consistent action. Ultimately, this can help you navigate and reach your financial goals.