Week 1: The Money Mastermind - Setting Yourself Up for Success
Stuck feeling like you're on a financial tightrope? You're not alone! But the answer might surprise you. Higher income isn't always the key. In fact, it can lead to more spending, leaving you stuck.
The Secret Weapon: Your Money Mindset
Think of your money mindset as your internal GPS for finances. It's a collection of beliefs, emotions, and experiences that shape how you handle money. Did your parents struggle? Or maybe you knew someone who appeared wealthy, by all the cool toys, cars, or big house they had, but was actually drowning in debt? These experiences, often subconscious, impact your spending, saving, and debt approach.
The Good News: You Can Change It!
Let's explore 3 key elements influencing your financial journey:
Beliefs: What are your core beliefs about money? Does wealth come from high pay or smart management? Does your self-worth depend on how much you appear to have to others or how much contentment you have in your life. Where do you find true happiness?
Emotions: Do purchases give you a temporary power boost? Maybe you feel powerless in other areas. Retail therapy might feel good temporarily, but true financial security comes from a solid foundation, not fleeting feelings.
Behaviors: Your money mindset shows up in your daily actions. Do you avoid creating a budget (or spending guide) because you fear failure? Everyone makes spending mistakes! It's about learning and adapting. A good spending guide is flexible, not a punishment. Embrace the process and celebrate progress!
Connecting the Dots: Your Debt Story
Remember the homework I asked of you from the last article on getting a list of your debt? Now that we have uncovered some reasons behind your spending habits, reflect on your past purchases. Were some driven by beliefs about money, power, and success? Be truthful to your self - this is where a healthy mindset shift can happen. Uncovering the "why" empowers you to make conscious financial choices for the future.
Shift Your Mindset, Take Control
Apply this newfound awareness to your next purchase. Before you buy, ask yourself:
Why am I buying this?
Do I already own something similar?
Is this an impulse buy? Can I wait a week to see if I truly need it? (be careful how you define “need”)
Shifting your money mindset starts with mindful pauses. Ask yourself: "Will this purchase bring lasting value or just a temporary high?" By taking this time to reflect, you move from autopilot spending to intentional choices aligned with your financial goals. Like waiting a week before buying anything over $50 and thoughtfully consider how this purchase will impact your life. This simple strategy empowers you to make conscious decisions. Building a healthy money mindset is an ongoing journey, not a destination. Don't be discouraged by setbacks. Just get back on track and remember the key points we discussed. Once you have a solid foundation, you can establish successful savings habits.
What's Next? Savings Strategies
While eliminating debt is crucial, saving even a small amount can be a game-changer. Next, we'll tackle building a 1-month emergency fund, a vital safety net, and explore some savings 101 tips. Don't worry if you've already reached this milestone – we'll have level 2 and 3 savings strategies waiting for you!
Tasks before you read the next post:
Spending Plan: Sign up for this 8-week challenge and I will send you a spending plan template. Spending some time on this (with a good bottle of wine, if you like!) will help you visualize your entire financial picture and track your spending.
Pro Tip: If you're already comfortable with budgeting, check out Tiller for real-time spend tracking. It's a great partner in my wealth-building journey.
Photo by Jon Flobrant on Unsplash
