How your mindset influences your money

Let’s explore how your mindset can influence your finances, with insights into cultivating a positive mindset for better financial outcomes. 

Understanding your money mindset and beliefs 

How you think and feel about money will significantly influence your financial habits and behaviours: how you spend, save, invest and approach your goals. 

Your mindset will determine your ability to stay disciplined towards your financial goals, your capacity for trying new things and believing in yourself, and it will influence how you recover from financial setbacks. 

Since your financial mindset is influenced by your upbringing, social norms and personal experiences, it means that 2 people in similar economic situations can have different experiences. 

People with a positive mindset	People with a negative mindset
Believe money is accessible                                                                                                See opportunities in financial challenges Are motivated to take action to achieve their goals Are in control of their behaviour and decisions Have an abundance mindset	Only look at the limitations and lack of money                                                                            Have fear and anxiety about money Are discouraged and defeated by their finances  Feel controlled by money Think negatively and avoid dealing with their finances Have a scarcity mindset

Your mindset and your relationship with money 

A positive mindset provides an abundance perspective and an excitement for what’s possible while a negative mindset leads to a scarcity approach, being fearful about having enough money and limiting your ability to enjoy life.

People with a positive financial mindset tend to do the following:

• Believe it’s possible to achieve their financial goals and make confident, informed decisions.
• Budget and stick to their goals. By achieving what they set out to do, it reinforces their self-belief and keeps them motivated and comfortable with the process.
• Save and invest for the future, understanding that if they don’t do it, it won’t happen on its own. They understand the value of delaying gratification and prioritising long-term financial goals. 

People with a negative financial mindset tend to do the following:

• Impulse spend, fail to keep track of their money and are disappointed when it’s finished. 
• Fall into debt cycles, taking on debt to pay other debt, spiralling further down the debt trap and negative thinking.
• Lack financial planning and put things off ‘till later’.
• Are guided by their emotions instead of rational thinking and planning, leading to poor financial decisions and regret. 

Cultivating a positive mindset 
Consider the following strategies to help you shift your mindset and promote positive financial outcomes.

Understand your mindset and limiting beliefs	Change your story
Identifying your negative beliefs can help you change them.Have an abundance mindset	See mistakes as lessons and start believing in your ability to change.Have a scarcity mindset
Educate yourself	Start small but specific
The more you understand finance, the more empowered you’ll be to make informed decisions.	Have a clear vision of what you want to change and how. Small steps in the right direction can lead to sustainable progress.
Stop comparing yourself to others	Surround yourself with positive influences
Everyone’s situation is different, and their success doesn’t mean your loss.	Surround yourself with positive-minded people and financial experts.

Remember that changing your thinking is a gradual process. Be patient and kind to yourself as you work to develop a positive mindset about money. By aligning your thoughts, beliefs and actions with your financial goals, you can achieve a healthier financial life.

Disclaimer: This article is solely intended for information. It does not constitute financial, tax or investment advice or recommendation. Please speak to a financial advisor or registered financial professional before making any financial decision(s). 

Standard Bank, its subsidiaries or holding company, or any subsidiary of the holding company and all of its subsidiaries make no warranties or representations (implied or otherwise) as to the accuracy, completeness or fitness for purpose of the information provided in this article or that it is free from errors or omissions.