Understanding Your Money Mindset: A Journey to Better Finances

“Your money mindset and habits are as unique as your signature, and they are shaping every decision you make, whether you realise it or not."

Your mindset around money impacts far more than your bank balance. It influences your daily habits, stress levels, and overall feelings around spending and saving. Financial literacy, though essential, won’t help you feel in control of your finances if underlying beliefs about money are holding you back.

Why Money Mindset Matters

Our money mindset – the beliefs we carry about money – often shapes our financial stress more than what we know about budgeting or investing. For many, limiting beliefs around money create a loop of stress, fear, or guilt that can override any positive impact from financial knowledge. Without awareness of these beliefs, building a healthy financial future feels like running in place.

How to Understand Your Money Mindset: A One-Week Experiment

To uncover your current money mindset, try this exercise for a week. Each time you receive a bill, make a payment, buy something, or receive income, stop and reflect:

1. Notice your reaction. What do you feel when making a payment or receiving money?

2. Check in with your body.Where do you feel this emotion? Is it a tightness, heaviness, or a feeling of lightness?

This awareness can reveal how you truly feel about money and your financial situation, which is the first step toward understanding your money mindset.

Step-by-Step Guide

1. Observing Expenses: Noticing Patterns in Your Reactions

When you see a bill – your phone or electricity bill, for instance – take note of your reaction.

- Do you feel frustration, annoyance, or fear?

- Is there resentment about having to part with that money?

These reactions often indicate a scarcity mindset, where you feel limited in resources. Identifying these emotions can help you understand if a fear of lack is influencing your spending.

2. Reflecting on Income: What Feelings Surface When You’re Paid?

Similarly, look at how you feel when you receive income – whether it’s your salary, a client payment, or a small gift.

- Do you feel gratitude and excitement, or does it go unnoticed?

- Do you feel it’s “not enough” or immediately think of how it will be spent?

When we don’t fully acknowledge incoming money, it can reflect a sense of lack or even guilt. Building a habit of gratitude for every source of income can help break this pattern.

3. Exploring “Wants” vs. “Needs”

Divide your spending into essentials (needs) and non-essentials (wants). This allows you to see how different types of spending affect your stress and mindset.

- Needs: For recurring bills, focus on what these payments enable. For example, a phone bill represents connection and convenience, while electricity provides safety and comfort at home.

- Wants: Think about purchases like meals out or shopping. Are you feeling guilt or regret afterward? This can indicate a struggle with self-worth or a fear of scarcity.

Action Points for Positive Change

1. Reframe Reactions to Your Bills and Expenses

Take a closer look at what each bill represents in your life. Instead of viewing a bill as just a drain on your finances, try reframing it:

- Phone Bill: Think of it as your link to loved ones and a tool that keeps your business running smoothly.

- Electricity Bill: Appreciate the comfort and security it brings, from a cool home in the summer to safe food storage.

When you feel gratitude for these benefits, it shifts you away from resentment and toward a sense of control.

2. Celebrate Every Income Moment

Whenever money comes in, pause to acknowledge it. Give thanks, even if it feels small, and reflect on what this income will allow you to do.

- Gratitude is foundational for growth. Recognising what you have now creates a positive energy that supports your financial goals.

3. Review and Align Your Non-Essential Spending

After a week, examine your “wants” purchases. Did you feel guilt or regret afterward? Think about whether these purchases align with your values.

- Ask yourself: *Is this something that enhances my well-being or brings me joy?* If so, embrace it. If not, consider redirecting those funds to something that does.

After this week of observing your money mindset, take time to reflect:

1. How did your reactions to spending and receiving money change?

2. What did reframing your bills and purchases teach you?

3. Have your stress levels around money shifted?

This awareness is a powerful first step. I’d love to hear your experience with this exercise – how did it impact your daily habits, reduce financial stress, or change how you feel about managing money? Share your thoughts, and let’s continue this journey towards financial empowerment together.

By understanding and reshaping your money mindset, you can turn everyday financial habits into steps toward a healthier, more empowered financial life. Start with awareness, then let gratitude and intention guide you.