Last Updated September 29, 2024 by Davina Kelly
Working on money mindset shifts is one of the most powerful steps you can take towards improving your finances.
The way you think about money impacts every decision you make – from how you save to how you spend and invest.
In this post, we’ll go through key money mindset shifts that can help you break free from limiting beliefs. And most importantly, how to flip the switch and adopt a mindset that opens the doors to financial growth and success.
These small mental shifts can lead to big changes, just like they did for me. By making these money mindset shifts, I was able to pay off debt, save over $50,000 and build a solid investment portfolio.
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Money Mindset Definition
Before we get into money mindset shifts, let’s clarify what a money mindset actually is.
Think of it as the lens through which you view money. Your money mindset essentially shapes your thoughts, beliefs and attitudes about earning, spending, saving and investing.
For the most part, your money mindset is shaped by your upbringing, environment and past experiences.
These beliefs can either limit your financial potential or open doors to abundance. So, if you’ve been stuck in a cycle of debt, stress and scarcity, it’s time to shift how you view money.
Scarcity vs. Abundance Mindset
There are two main types of money mindsets: scarcity and abundance.
A scarcity mindset is all about the fear of not having enough. If you’ve ever thought, “I can’t afford that,” or “Money doesn’t grow on trees”, that’s scarcity talking.
People with a scarcity mindset tend to focus on lack – there’s never enough and they live in constant fear of running out.
On the other hand, an abundance mindset comes from a place of possibility and growth. It’s the belief that there’s always more money to be made, more opportunities to grow and that financial success is available to everyone.
Instead of thinking, “I can’t afford that,” someone with an abundance mindset asks, “How can I afford that?” They look for opportunities rather than limits.
The shift, from scarcity to abundance is crucial for anyone who wants to improve their financial situation. It sets the stage for all the other shifts we’re going to talk about in this post.
Common Limiting Beliefs That Hold You Back Financially
Let’s talk about those sneaky limiting beliefs about money. These are the internal dialogues and stories we tell ourselves about money, often without realising it.
These beliefs have likely been ingrained in us from childhood and they subtly control the financial decisions we make.
Let’s uncover some of the most common ones that could be holding you back.
“Money is the Root of All Evil”
This one is a classic and is deeply rooted in many cultures and families. If you grew up hearing that “rich people are greedy” or “money doesn’t buy happiness”, you might subconsciously feel that desiring wealth is wrong.
But here’s the truth: money is neutral. It’s simply a tool. The way it’s used, whether good or bad depends entirely on the person controlling it.
“I’m Not Good with Money”
How often have you said this to yourself? This belief often leads to financial avoidance – you don’t look at your bills, you delay saving or you feel overwhelmed by the idea of investing.
If you convince yourself that managing money is too complicated or boring, you’ll never take the time to learn how to do it well.
But managing money is a skill, not an innate talent. Like any skill, you can learn it, practice it and get better over time. It’s all about educating yourself and building confidence step by step.
“I’ll Never Make Enough Money”
If you believe you’ll never make enough money, you’re likely to stay in jobs that underpay you or settle for less than you’re worth. This limiting belief can stop you from even trying to improve your income.
But your income potential is not fixed. Whether you ask for a raise, start a side hustle, or pursue new skills that open up higher-paying opportunities, there’s always a way to increase your income.
Important Money Mindset Shifts for Financial Growth
Now that we’ve identified some limiting money beliefs, let’s get into the good stuff: how to shift them and take control of your finances. Here are the most powerful money mindset shifts you can make to grow your wealth.
1. From Limitation to Opportunity
Instead of constantly focusing on where you need to cut back, shift your thinking toward how you can bring in more income. Sure, managing expenses is important, but there’s a limit to how much you can cut. There’s no limit, though, to how much you can earn.
Look for ways to create new income streams. Do you have a passion or skill you can turn into a side hustle? Could you start freelancing? What about asking for a raise?
When you start viewing your financial situation through the lens of opportunity rather than limitation, you’ll be surprised at how many opportunities open up.
2. From Instant Gratification to Long-Term Value
We live in a world where we’re used to getting things now. We want to buy things with the click of a button, and waiting even a day for something feels like forever. But one of the most powerful money mindset shifts you can make is learning to delay gratification.
This shift is all about trading short-term wants for long-term goals. Every time you resist an impulse purchase and instead put that money toward savings or an investment, you’re making a decision your future self will thank you for.
Think about the big picture: Do you really want that trendy gadget today, or would you rather build the financial foundation to buy a house or retire early?
3. From Fixed Mindset to Growth Mindset
A fixed mindset says. “This is just how things are. I’m stuck! A growth mindset says, “I can learn, improve and grow.” When it comes to your finances a growth mindset is everything.
Instead of believing that you are stuck in your current situation, recognise that you have the power to change and grow.
If you feel like you’re bad with money, that doesn’t have to be your story forever. You can always learn about budgeting, saving and investing. Pick up a money mindset book, take an online course or listen to podcasts.
There’s always something new to learn, and the more you know, the better equipped you are to grow your wealth.
4. From Fear of Failure to Confidence
We’re all afraid of making mistakes – especially with money. That fear held me back from investing sooner. Worrying about picking the wrong stock or not saving enough for emergencies can keep us from taking any action at all.
But here’s the thing: Everyone makes mistakes with money. My mistakes led to me being in $10k payday loan debt. But I turned things around, I’ve now built a five-figure investment portfolio and saved over $50k. The key isn’t avoiding mistakes, it’s learning from them and pushing forward.
Building confidence in your financial decisions takes time. It starts with small actions and learning along the way.
Start small if you need to, but start. Invest a little, see how it performs and learn from the experience. Over time you’ll build confidence that will lead to even smarter financial decisions.
5. Believe Success is Possible
One of the biggest money mindset shifts you need to make is simply believing that financial success is possible for you. If you think wealth is only for other people – people with higher-paying jobs or more education you’ll hold yourself back from achieving it.
You need to shift your mindset to believing that you are capable of building wealth. This shift starts with acknowledging your own value or potential. Stop comparing yourself to others and start focusing on what you can do.
Believe that you can earn more, save more and invest in ways that will build real wealth over time.
6. Invest in Yourself
The best investment you can make is in yourself and that includes your skills and financial education. Whether it’s improving your knowledge of personal finance or mastering new abilities for your career, investing in yourself pays dividends over time.
If you feel unsure about managing your money or growing wealth, it’s not because you’re bad at it – it’s simply because you haven’t developed the skills yet. The more you learn, the more empowered and confident you’ll become.
From reading books to taking courses or listening to podcasts, consistently work on building your money skills. By doing so, you’ll not only make better financial decisions but also open new opportunities that can increase your income and wealth.
If you’re looking for ways to level up your skills check out Skillshare. They’re an online learning platform with unlimited classes on everything from finance and entrepreneurship to time management.
You can try it out here FREE for 30 days and start investing in yourself.
7. From Thinking Small to Thinking Big
If you’re only thinking about how to pay next month’s bills or save a few dollars on your grocery budget, you’re thinking too small. Those things are super important – I’m all for saving where I can, but they won’t get you to the next level.
Shifting from thinking small to thinking big means expanding your own vision of what’s possible. Don’t just aim to survive financially – aim to thrive.
Start dreaming bigger. Do you want to retire early? Own multiple properties? Start your own business? Think about your long-term financial goals and then make a plan to get there.
When you start thinking bigger, you’ll take actions that are aligned with those bigger goals.
Practical Steps to Change Your Money Mindset
Shifting your money mindset isn’t something that happens overnight. It’s a process that requires awareness, practice and intentionality. Here are some practical steps to make money mindset shifts.
Step 1: Identify and Challenge Limiting Beliefs
Take some time to reflect on your current beliefs about money. Write them down and ask yourself if they’re really true. For example, if you’ve always believed that you’ll never make enough money, challenge that thought by writing down ways you could increase your income.
This exercise helps you see that many of your limiting beliefs aren’t facts – they’re just thoughts that can be changed.
Step 2: Surround Yourself with Positive Financial Influences
The people you surround yourself with and the content you consume has a huge impact on your mindset. If you’re constantly around people who complain about money or say things like “I’m broke,” it’s going to be hard for you to develop an abundance mindset.
Instead, seek out positive financial influences. Follow personal finance blogs (like this one), listen to podcasts and read books that inspire you to take control of your finances. And don’t be afraid to distance yourself from negative influences that reinforce scarcity thinking.
Step 3: Set Clear Achievable Goals
Start setting specific achievable financial goals. These goals give you a clear sense of direction and keep you motivated. Without them, you’re just wandering aimlessly through your financial life without purpose.
Create actionable goals like “I’ll save $500 for an emergency fund in 3 months” or “I’ll increase my income by 10% this year.”
The more concrete and realistic your goals are, the more driven you’ll be to achieve them. This shift in focus will not only help you stay on track but also steer your mindset toward long-term financial success.
Step 4: Practice Gratitude and Financial Affirmations
Practising gratitude can have a powerful impact on your life. When you focus on what you’re thankful for, it shifts your mindset from scarcity to abundance.
A great way to start is by writing down a few things you’re grateful for each morning – whether it’s having a steady paycheck, a roof over your head or even just a good cup of coffee.
You can also use affirmations to reshape your money mindset. Try repeating statements like “I am capable of managing my finances.” “I attract financial opportunities,” or “I deserve to be financially secure.” It may feel awkward at first, but these positive affirmations can help rewire your thinking for success.
Related: 88 Money Affirmations That Actually Work
How Money Mindset Shifts Lead to Financial Freedom
Shifting your money mindset isn’t just about feeling better about money – it leads to tangible financial results. When you stop letting limiting beliefs control you, you’ll start making better financial decisions.
You’ll feel more confident investing, saving and even spending in a way that aligns with your goals.
A positive money mindset also creates a ripple effect. When you believe that financial success is possible for you, you’ll start to take actions that make it a reality.
Instead of holding onto every penny out of fear, you’ll feel more comfortable investing in opportunities that can grow your wealth.
You’ll feel empowered to ask for a raise or start that business you’ve been dreaming about.
Final Thoughts on Money Mindset Shifts
Shifting your money mindset is a powerful step toward financial freedom. By letting go of limiting beliefs and adopting a more growth-oriented way of thinking, you can open the door to new opportunities and wealth-building strategies.
It’s not just about money in your bank account – it’s about the mindset that guides your decisions. Start small, challenge your beliefs and keep growing.
The financial future you dream of is within reach and it all begins with how you think.
What are some money mindset shifts you want to make? Let me know in the comments below.
This post was all about money mindset shifts.
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Davina Kelly
Hey! I'm Davina, the owner of Davinas Finance Corner. I'm passionate about finding ways to budget, save, earn more money and improve your life. After breaking free from payday loan debt and living paycheck to paycheck I want to share my experience to help other women improve their finances.