I’ve got friends and family who fall both sides of wealth and being broke. Of course, many of them found themselves with a wonderful stroke of luck; parents who were wealthy or inheritances. But for the most part, as adults, our financial situation is our own crafted through our mistakes, choices and lessons during the years.
I’ve been tight with money as an adult, but never broke.
I’m very aware that it’s easy for me to say now, as someone who earns tens of thousands of dollars a month, that I save a lot.
But the simple truth is when I was a student, working a job I didn’t really care for at Subway I managed to save $12,000 (NZD) in 8 months.
I came from a welfare home and while we did just fine, it was obvious at times there was no money spare. I saw the consequences of being tight with money and I saw that being poor is expensive. I decided that when I was older, I would ensure that I always had my own financial safety belt.
Signs You Might Have a Poor Money Mindset
You often mention how there’s not enough money to go around or that you’re “always broke”
You feel that other people’s financial success ensures that there is less success available to you
You do not genuinely believe that you can be wealthy and have an abundance of money
You spend 100% of what you earn and save nothing
You buy things you want but do not need even when you can’t afford them
You have a negative view on money and feel that it is a bad thing
If you answered yes to one or more of those signs, then chances are you’re actually sabotaging your financial success not only through your actions but through your thoughts too. I understand, some people find themselves in surprising situations, such as death, a divorce, or a lost job and in these temporary situations you might find yourself showing symptoms of a poor money mindset. But the key difference is these theoretical situations are temporary and if you find yourself showing these poor money mindset signs in the long haul then you need to make some changes.
Simple Ways To Beat a Poor Money Mindset
Create a visual board or a list of goals based around finances that you want to achieve. Visualising your goals helps you live them and get excited about them, propelling you through difficult times.
If you’re not saving much or at all, then you need to either decrease your expenses, increase your income or both. There are many side hustles you can look to earn extra money so you can save something. At a minimum you should be saving at least 10% of your income but any more than that is even better.
Understand that there’s abundance and there’s literally as much success and wealth as you want available to you. Of course, you have to figure out a way to provide value to others to unlock it.
Consume less and spend less money on frivolous purchases such as coffees, beers, eating out and even big ticket items like the new phone you don’t need.
Understand that money is just a tool for trading your time or value in order to trade it for other things. Money isn’t evil. We all need a certain level of money to feel comfortable, safe and secure in our lives and there’s nothing wrong with desiring that.
I have many friends with a poor money mindset and I’ve watched over the years as their finances have gotten worse and worse. If you can recognise any of these signs in yourself, do take the time to work through them.
Have you ever experienced a period of a poor money mindset? I’d love to hear how you overcame it in the comments below.