Changing your mindset to embrace having financial freedom is a huge and often uncomfortable step for most people. A mindset of growth, abundance and appreciation allows you to focus and act on your dreams.
You can overcome limiting beliefs and believe in your ability to manage your money. Keep reading to learn all the ways to take control of your finances.
Unlearn Your Money Beliefs
Changing your mindset starts with eliminating all the limiting beliefs about money. Many of our beliefs were subconsciously given to us when we were younger. They often affect our attitudes and response towards building wealth.
If you have disempowering beliefs, then you won’t feel confident to take on opportunities. You may believe the rich are living their destiny or are lucky. This makes you feel limited and stuck in your financial situation.
Make it your goal to change your mindset and see money as something attainable and acceptable.
Set Attainable Financial Goals
A huge part of changing your mindset for financial freedom is becoming a doer. We all have grandiose dreams but what brings money is constant action.
Without action, excuses become part of your lifestyle. You start looking for reasons for why you never start or stick to your goals. Taking action molds and shapes you. You learn to overcome roadblocks and grow a positive mindset.
Here are some tips on how become a doer with your finances:
- Learn to create attainable financial goals and follow up with action
- Be specific on your financial goals and set deadlines
- Rather than only saving, come up with your “why”, a specific target and timeline (for instance “I will save $200 every month to buy stock worth $4800 in two years”)
- Start researching and implementing ways to invest your money
Becoming a doer also means taking bold steps to change your financial fortunes. If you wish to start or expand your business, create a plan. Trusted companies like Rightway Funding can help you to get started. That first step can transform your thinking and change your financial perspectives.
Mind Who You Spend Your Time With
Famous entrepreneur, Jim Ron, once said you’re an average of the five people you spend the most time with. This means relationships play a significant role in how you think, behave and act.
If you stick around negative people, you conform to their thought patterns. Likewise, skilled focused and self-driven individuals will inspire and invigorate you.
So, look for friends who are actively aiming to grow their incomes. Find mentors and network in the right places. If you want to think like an entrepreneur, attend entrepreneurial conferences or forums.
Develop a Growth Mindset
It’s hard to change behaviors or habits which have stuck to our brains since childhood. That’s why embarking on most goals without a long-term mindset never works.
Changing your mindset for financial growth will take years of self-improvement. You have to find and consume resources that can alter your mindset constantly.
Read financial books, watch videos and take courses to expand your thinking. This helps to change thoughts and expand your knowledge about managing your money.
Set Time to Visualize
If you’re living in a cycle of debt, your financial future can seem dark. The thought of taking control of your money and getting out of the hole can also sound impossible.
Yet, cultivating a financial mindset is more crucial in your darkest moments. While you feel helpless, you still need to stay positive and have hope for a great financial future.
A great tool to keep you going amidst the financial turmoil is visualization. Imagine yourself where you want to be and put all your senses there. A practical and easy way to do that is to use a vision board.
Jim Carrey wrote himself a check for 10 million dollars early on in his career. Years later, he found out he had made the amount from his movie “Dumb & Dumber”.
Write your financial goals and your projected lifestyle on a board and place it where you can see it often. That way, you will remember your goals and take action to achieve them.
You may naturally shift focus to what you lack when you obsess over how to get out of the cycle of debt. Managing your money also becomes difficult because your mind is on the empty half of your glass.
Being grateful helps you see the little you have as your stepping stone to a better financial future. You can create realistic financial goals since you see empowerment in small steps.
Live a Minimalist Lifestyle to Get Out of a Cycle of Debt
The worst financial mistake when you’re in a cycle of debt is spending way above your means. One dollar spent above your income can weigh you down and frustrate your growth efforts.
If you change your mindset, you have to respect and value money. This means stopping any carefree or reckless behavior when spending. Have a strict budget that prioritizes savings and spending only on the necessary needs.
Save While Focusing on Expanding Your Income Streams
Saving is essential for your financial future. 66.6% of folks aged 60-79 said they should have saved more in their active earning years.
Saving depends on how you manage your money and control your expenditure. People who stick to a budget find saving easier. As a rule, you need to authorize your bank to transfer your savings to a dedicated account when your paycheck arrives.
Still, saving can be difficult when you’re in a cycle of debt. A better way to secure your financial future is to focus on growing your income streams. Think about working more hours, asking for a raise or looking for another job.
You can also consider a part-time job, side hustling or building a passive income.
Start Changing Your Mindset to Gain Financial Freedom
Your financial security depends heavily on your mindset. Unless you focus on changing your mindset, there’s a huge chance your financial situation won’t improve. Take your first step to a better financial future by implementing these tips.
The most important thing to do is to remain consistent and focused on your long-term goal. For more tips and advice on personal finance, read the rest of our blog.