Have you ever caught yourself saying, “I’m just not good with money” or “I’ll never get ahead”?
Yeah, me too.
A few years ago, I couldn’t even open my bank app without a sinking feeling. It felt like money controlled me, not the other way around.
Then I started learning about money mindset—and let me tell you, it’s a game-changer. It’s not just about saving or budgeting; it’s about how you think about money and what you believe is possible for yourself.
Here’s what I’ve learned along the way, with a couple of personal stories sprinkled in.
What is Money Mindset?
Your money mindset is the collection of beliefs and attitudes you have about money. It’s the mental framework that shapes how you earn, save, spend, and think about your finances. Think of it as a filter through which you view your financial life. Do you see money as a tool full of opportunities, or as something scarce and difficult to manage?
Are you aware what kind of mindset you have? Read here How To Identify Your Mindset.
Money Mindset in Action
For much of my early life, I believed money was always going to be a struggle. Growing up, my family didn’t have much, and we often lived paycheck to paycheck. Saving money felt impossible, like something only wealthy people could do. Every time I got a little ahead, an unexpected expense would wipe it out, reinforcing my belief that “I’ll never get ahead.”
That all started to shift in college when I met a friend who lived on an incredibly tight budget but never seemed stressed about money. She wasn’t earning much more than I was, but she approached her finances with confidence and clarity. She made a plan for every dollar, saw money as a tool to achieve her goals, and didn’t let fear dictate her choices. Watching her was my first glimpse of what a positive money mindset could look like.
How Your Money Mindset Shapes Your Finances
Your beliefs about money influence everything—your habits, decisions, and even your financial outcomes. Here are a few examples of common money mindsets and how they play out in real life:
Scarcity Mindset:
- Belief: “There’s never enough money.”
- Behavior: Constant worry about bills and avoiding risks, like investing or switching jobs.
- Outcome: Financial stagnation or living paycheck to paycheck.
For example, I had a co-worker who was so afraid of losing her savings that she kept it all in a checking account. Over time, inflation ate away at its value because she refused to explore investments, even safe ones.
Abundance Mindset:
- Belief: “There’s always an opportunity to grow my wealth.”
- Behavior: Seeking out new income streams, investing wisely, and staying calm about finances.
- Outcome: Long-term financial growth and security.
Example: I once worked with someone who started a side hustle selling handmade jewelry. At first, she made only a few extra dollars each month, but she reinvested her earnings and eventually built a successful online store. Her belief that “there’s always more to earn” kept her motivated.
How to Identify Your Money Mindset
Start by reflecting on your current beliefs about money. Ask yourself:
- What messages about money did I learn growing up?
For example, did you hear phrases like “Money doesn’t grow on trees” or “Rich people are greedy”? These can create subconscious barriers. - How do I feel when I think about money?
Do you feel calm and in control, or stressed and overwhelmed? - What do I believe about my ability to earn, save, or invest?
If you catch yourself saying, “I’ll never be good with money,” that’s a sign of a negative mindset.
Shifting to a Positive Money Mindset
Changing your money mindset doesn’t happen overnight, but it’s absolutely possible. Here are a few strategies to get started:
Celebrate Small Wins
Each time you take a positive step, like saving an extra $50 or creating a budget, acknowledge it. These small victories build momentum.
Reframe Limiting Beliefs
Old belief: “I’ll never have enough money.”
New belief: “I can create a plan to grow my income and savings.”
Write down your negative thoughts about money and flip them into empowering ones.
Learn About Finances
Education can help replace fear with confidence. Start small—read a book about personal finance, listen to a money podcast, or take a free online course.
Surround Yourself with Positive Examples
Spend time with people who have healthy financial habits. Seeing their approach to money can inspire you to adopt similar behaviors.
Why Your Money Mindset Matters
A healthy money mindset helps you:
- Grow Financially: You start looking for ways to earn more or save smarter. For example, after college, I started freelancing on the side. I didn’t think of it as “extra work” but as an investment in my future.
- Cut Down Money Stress: When you stop seeing money as this uncontrollable force, you can actually sleep at night. Trust me, those first few months of budgeting weren’t easy, but knowing where my money was going gave me peace of mind.
- Make Smarter Choices: A positive mindset can help you avoid financial pitfalls, like racking up credit card debt or impulse spending. (I learned this the hard way after a one-month “retail therapy” binge left me eating ramen for weeks!)
The Blocks Holding You Back
Let’s talk about what might be keeping you stuck:
- Limiting Beliefs
If you’ve ever thought, “I’ll never be rich” or “Money is evil,” that’s a limiting belief holding you back. I used to think rich people were just lucky, but the truth is many of them are disciplined and focused. - Fear of Success
This one surprised me. Sometimes, we sabotage ourselves because we’re scared of the responsibility that comes with having more money. I’ve been there—worrying about taxes or what people would think if I earned more. - Bad Spending Habits
If you’re not budgeting or tracking your expenses, it’s easy to overspend. I used to think, “I work hard; I deserve this.” That mindset landed me in a cycle of paycheck-to-paycheck living.
How to Change Your Money Mindset
Step 1: Challenge Your Beliefs
Write down what you believe about money. Then ask yourself, “Is this really true?” For example, if you think, “I’ll never be able to save,” flip it to, “I can start small and build my savings over time.” That’s how I went from saving $20 a month to building a three-month emergency fund.
Step 2: Build Healthy Habits
- Budgeting: Track what you earn and spend. I use a simple spreadsheet, but apps work too.
- Saving: Even $10 a week adds up.
- Investing: Start small. I use simple notebook and write down my spendings. I tried different expense tracking apps, but I guess I am old-fashioned.
Step 3: Practice Gratitude
This one’s big. Every night, I jot down one financial win—like finding a great deal or sticking to my grocery budget. It rewires your brain to focus on what’s working, not what’s lacking.
My Journey to Abundance
A few years ago, I felt stuck in my 9-to-5 with no savings and no plan. Then I started shifting my mindset. One day, I looked at my bank account and realized I’d saved $1,000—not because I made more but because I changed how I thought about money. That moment showed me what was possible.
Today, I’m working toward bigger goals, like investing for retirement and maybe even starting a small business. It’s not perfect, but I’m in control—and that feels incredible.
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Your money mindset is the foundation of your financial journey. When you see money as a tool rather than a hurdle, you open yourself to growth, opportunity, and security. It’s not about how much you have right now—it’s about believing in your ability to make smart choices and build a better future.
What kind of mindset do you have? Let’s talk in comments.