Your mindset determines the results you have in your life. This concept also applies to money. How you think about your money will ultimately determine your results with money. Therefore, developing a healthy money mindset is critical if you want financial success.

However, money is also the base of many problems, stress, conflicts.
If we’re being completely honest, many, if not most, problems do revolve around money. Therefore, it is extremely important to work on your money mindset and make the best out of it.

In this post, I have gathered some of the best money mindset shifts you can make. It can be truly transformational.

Here’s how to develop a healthy money mindset.



What is a Money Mindset?

A money mindset is your attitude and beliefs about money.  It controls how you handle personal finance and guides you in making every single financial decision you make.

If you can understand your mindset and where it comes from, you can improve your relationship, make better choices, and look toward a healthier financial future. It’s time to get physical and work on some money mindset exercises.


Why does a money mindset matter?

The reason money mindset matters are because your thoughts create your feelings, feelings create your actions, and actions create your results.

Thoughts → Feelings → Actions → Results

Circumstances are neutral.

Your thoughts create the results you have in your life.

So, if you don’t like your current results with money, then you probably need to take a look at your thoughts and see what’s going on.

You can choose to think whatever you want about your money. Your circumstances are always neutral. It’s your thoughts about your circumstances that give them meaning.

Your money beliefs are yours to create. If you don’t like your current beliefs, you can change them.


Money is just a tool, always remember that

Many people exaggerate the importance of money but at the end of the day, money is just that – a tool.

A tool people have decided to be useful for deciding the value and exchanging things.

Don’t cling on your money as it’s the most important entity in your life. Don’t make it a matter of life or death. It’s just a tool.


Just like we need food, clothing and air to breath, we also need money. And just like food, clothing and air, we have quite an unlimited supply of it all around.

I’m not trying to demean the importance of having food on the table. However, the more you focus on money as the most important thing in your world, the less peace you will have around it.

“A wise person should have money in their head, but not in their heart.”
Jonathan Swift

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Understand your relationship with money

Where did you learn about money, and what were you taught? Merely understanding where your money concepts come from is the first step in changing your money mindset.

Creating a new money mindset is just creating a new habit. Merely being conscious of the new practice that you would like to form and attaching it to an existing habit.

Financial wellness is a real thing.  Having a healthy financial relationship means that your money mindset is positive, with limited stress.


Create a budget and organise your finances

Next, it’s time to get organised and actually understand what’s going on with your money so you can have a better relationship with your money.

The best way to get organised is to create a budget.


Once you’re organised and understand your net worth and cash flow, you want to set aside time each week to review and update your budget. You can monitor your net worth on a monthly or quarterly basis.

This is how you’ll track your financial progress and ensure you stay on track with your budget.

Staying on top of your finances and making sure you always know what’s going on is critical to your relationship with your money.

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Realise that you can be debt free and build wealth

Another one of the most important things you can do to change your money mindset and to build wealth is to change your views on debt. Rather than viewing debt as a tool or thinking that there is good debt and bad debt, consider debt as the thief of your financial freedom and your future wealth.

One of the healthiest things you can do for your money is to first get out of debt and then stay out of debt. That is because when you get out of debt—as one of my favourite personal finance gurus, Dave Ramsey, says—you free up your biggest wealth-building tool: your income.

By paying off all of your debt and then staying out of debt you will have all of your income to use to meet your needs and build your wealth, instead of the bank’s. And ultimately, you will be able to achieve financial freedom.

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Set big goals

The problem with most goals is that they are not big enough to motivate you to take (massive) action.

Big goals, on the other hand, will really fire you up. So, when it comes to money, it’s even more important than you think big. And dream big!


Whatever it is you are offering the world in exchange for money, I bet there is someone in the world doing the same and who earns an unbelievable amount of money with it.

I mean there are people making millions by:

  • Traveling the world
  • Helping others
  • Living their dream
  • In their sleep
  • Working only a few hours a week

And the list goes on and on…

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Stop comparing yourself to others

At some point, we have all probably compared ourselves to someone else. It’s a habit that many of us have and don’t even realize. If you aren’t careful, these comparisons can get you into trouble.

Not only do people try to “Keep up with the Joneses” by buying things they don’t need, they also try to “Keep up with the Joneses” by bragging all over the place about their financial progress.

What do I mean by that?

If you scroll through certain money-related #hashtags on Instagram, you’ll see pictures of people touting their latest debt payoffs, monthly savings, and accomplishments.

Most people are genuinely sharing just to share, but some people share just to say “Hey, look at how well I’m doing”. And there’s a big trend of people creating brand-new accounts for the sole purpose of sharing their financial journey and interacting with people.

There is nothing wrong with this in theory, but what typically happens is people create these accounts and then get discouraged by what other people are doing and then they end up abandoning their account and their progress.

Creating a special social media account to share your “progress” will not fix your financial problems, but a budget and a plan will.


Be content with what you have.

Another mindset shift that will really help you to build wealth is to learn to be content with what you have. This will help ensure that you have a mindset of abundance rather than a mindset of scarcity.

I truly believe that one of the main secrets to building wealth and being financially successful is to learn how to be content with what you already have. Of course, there are other important factors, but if you can’t be content with what you have and you always feel a driving need for more gadgets, more toys, more stuff—and better stuff—then you’re going to struggle at winning financially.

And simple math is the culprit. As much as virtually all of us would like to have all the money in the world to both buy the things we want and do the things we really should do for our financial stability and success, the truth is that most of us simply don’t have the money for both. And so, we have to choose.


Forgive yourself for past money mistakes.

I think this one is the most difficult.  Nobody is perfect, right? So, maybe you got in too deep and had to file bankruptcy, or your car was repossessed.

Stuff happens, and forgiving yourself for those incidences is so vital to changing that money mindset.

Also, knowing that there will be other mistakes, and you have the tools to get through those moments because of what you have learned from the past will get you through these other mistakes.

But, make sure you have learned something. And put resources into place in case they happen again.


Change your money mindset – Final thought

Changing your money mindset is a lot of self-work. But with plenty of practice, you can see your life change before your eyes. In order to have money flow to you, you have to believe that not only are you worthy of more money but that it’s so easy for you to get it.

Finances are not a struggle and you are perfectly capable of having all that you want.

What are you tips for a healthy money mindset?

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