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How To Change Your Money Mindset From Scarcity To Abundance

Do you want more wealth? Are you tired of struggling to get by? While you might think hitting the lottery or finding the perfect job is the answer to your prayers, the truth is, changing your mindset could be the only thing you need to do.

money making mindset

I know it sounds different than what you typically read about growing your wealth, but there is a lot you can accomplish in life just by having the right mindset.

In this post, I am going to show you how a money mindset will benefit you and how you can create one so you can enjoy a life of wealth.

The Importance Of Having A Money Making Mindset

Before I get into the steps you need to follow for creating your money mindset, I want to take a minute to explain further the importance of having the right mindset.

Your brain is the strongest muscle you have, and when it believes in something, it is almost impossible to stop it.

For example, you might be scared to fly. You can easily recall many horror stories of plane crashes or even severe turbulence that planes encountered.

But the truth is, flying is one of the safest ways to travel. In fact, there is a 1 in 9,821 chance of dying in a plane crash vs. a 1 in 114 chance of passing away from a car accident.

The point here is, even with facts, your mind still believes what it wants to believe. And if you can change the things your mind believes, you can change your life.

For example, if you always think you never have enough money, you will always live like you don’t have enough. But if you can start thinking you have an abundance of money, you will.

By understanding the importance of the right mindset, you will be close to unstoppable.

So whether your savings goal is to save $100,000 or have $1 million or more, the right money mindset will go a long way into making it a reality. Let’s get started with the steps you need to follow to create your money mindset.

5 Steps To Creating A Money Mindset

Now that you understand the importance of having the right mindset for what you want to achieve in life, it is time to create your money mindset.

To help you get started, I created a 5 step plan that will take you through the entire process.

Just understand you won’t create a money mindset overnight. And you won’t create any mindset overnight for that matter.

 It takes time. But if you are patient and work at it, you can create the mindset you want.

1. Understand Your Values

The first step to creating a money mindset is to understand your values. Up until now, you blindly bought what you thought brought you happiness.

But most of this stuff doesn’t bring you happiness. This is why you keep buying more stuff because none of the things you have been buying has a positive effect on your overall happiness.

To find out what you value, first take some time to think about the times you were happiest in life. What were you doing? Who were you with?

For example, I am happiest with loved ones, and when I am experiencing something. Going on trips, seeing concerts, even gathering together, and playing board games. All these things bring me joy.

Since I value experiences and spending time with loved ones, I have started to focus more of my energy and money in these areas.

We started to have a monthly get together at my house. I’ll spend some money making a quick dinner, like chili, tacos, or even buying some pizzas.

Then we catch up while eating and play board games for the rest of the night. It’s endless fun and brings me joy.

Before I completed this step, I was a sucker for the latest electronics. Buying the hottest tech products brought me joy, or so I thought.

But no matter how many electronic items I would buy, I always needed to buy more. One day, I took a hard look at my life and decided I wanted to live a life based on my values.

This led me to realize that I get joy from experiences and spending time with loved ones. As a result, I am not influenced by advertisements as much to buy things thinking they will make me happier.

I know what I value and what brings me happiness.

Because of this, my cash flow has improved. By not spending money on things that don’t bring me joy, I have a lot more money to use for the things that do bring me happiness.

And I never spend as much on these things as I did on electronics. So take some time to figure out when you are happiest. Don’t think you need to figure this out in one sitting either.

Take your time and really think it through. The more thought you put into it, the more likely you are to come away with the right ideas.

2. Accept The Past

Whatever happened to you in the past is done. You cannot go back and change it. The problem, though, is many people live their lives based on the past instead of learning from it.

For example, maybe you invested in your money in 2006 and lost most of it when the markets crashed in 2008. Because of this, you are scared to invest any more money.

This is hurting you because your money is not growing like it could be if you started investing again. Instead, you are saving money but won’t be able to retire comfortably.

What you should have done is learned why the market crashed, and then looked at how the stock market always comes back. This happens a lot in our relationships too.

We open our hearts and fall in love. The other person breaks up with us, and we put up walls.

Instead of growing from this, many of us keep our walls up and never experience as deep and meaningful of a relationship that we are capable of.

So when it comes to your experiences in life, don’t hold on to the hurt or the pain. Learn to look at it objectively and grow from it instead.

3. Set Goals And Plan

Your next step is to set goals for your finances. I encourage you to dream big here.

Don’t say you want to have $5,000 in savings. If you really dream of having $1 million, make this your goal. Once you have your goal, it is time to create a fool-proof plan for making it a reality.

The first step is to run through all of the steps I list in this post to get you started on having the right mindset. From there, you are going to create a vision board.

If you have never heard of a vision board, it is a board or a notebook full of images and sayings that motivate you to help you reach your goals. And it works.

This is because when you see your goals in front of you, you remember them and work to make them a reality.

The opposite of this is why you fail at goal setting most of the time. You either think of a goal and never write it down, or you do write it down, but then put it in a drawer.

You need to see the goal every day if you want to reach it. The next step is to break your goal down, so it is more achievable.

For example, if your goal is to have $1 million and you have nothing saved and are saving $20 a month, it is going to be a long time until you reach your goal.

And at some point, you will get frustrated and quit. But not if you break it down. By breaking your goal down, you see more progress, which motivates you.

Here is how this works. You have a goal of $1 million and are saving $20 a month. After one year, you have $240 saved. At this rate, you think your goal is impossible.

If you instead break your goal down to $1,000 increments, your $240 saved is a decent amount. And seeing this progress will motivate you not just to keep saving $20 a month, but trying to find more ways to save money.

Before you know it, you are saving $100 a month and are hitting your smaller goal within the year. At this point, you can keep your smaller goal and try to hit the next $1,000 savings mark, or increase it.

Maybe make it $2,500 or $5,000.

The choice is yours. But by creating a vision board and breaking your goal down into smaller goals, you will keep a positive mindset during your journey.

4. Change Your Circle

Changing your circle is going to be the hardest step in changing your money mindset. Have you heard how you become who you surround yourself with?

The idea is that the people you associate with have the most significant influence over your life.

For example, let’s say you hang out with people who eat a poor diet. Every day they eat fried and processed foods with little to no fruit or vegetables.

In one year, do you think you will weigh the same as today, more, or less? The odds are high you will weigh more because you will give in to their poor eating habits.

This isn’t to say you will stop eating healthy altogether, but you will make poor eating choices more often, which will lead to weight gain.

The same idea holds true to wealth.

If you spend all your time with people struggling to make ends meet, you will think that getting ahead financially is all but impossible.

Yet spend all your time with the wealthy, and you will learn there are many ways to grow your wealth.

Your goal is to understand who it is you spend most of your time with and if they have a positive or negative impact on your life.

If their impact on your life is positive, great! Spend as much time with them and find others like them to continue to grow.

But if you find you are spending all your time with people that bring you down, it is time to find different people to spend time with.

As I said, it isn’t easy to change your inner circle. But it is something that has to be done if you want to change your money mindset and experience a life of wealth.

5. Identify Positive Affirmations

We all have negative or self-sabotaging thoughts in our heads. They can go from us thinking we are not pretty enough, thinking we are too fat, and even that we will always be poor.

The problem with these thoughts is that as we think or even say them, we believe them. You probably don’t know this if you’ve always thought negative thoughts about yourself.

But deep down, you believe these thoughts.

If we take the time to create different thoughts, we would start experiencing something different and start believing the thoughts too.

This works because we are replacing negative thoughts with positive ones. Understand this change won’t happen overnight.

You have to work at it before you naturally think of positive affirmations. But in time, you will. And at first, it will feel weird to think in this new way.

If you’ve always told yourself you are overweight, it will be hard to hear that you are beautiful and in shape. But if you give it time, the positive thoughts will feel normal, and the negative thoughts will begin to feel weird.

So what are some great positive money affirmations to say to yourself?

Here is a handful to get you started. You should reword them and make them your own.

  • I am worthy of making more money
  • My income increases constantly
  • I am a money magnet
  • Money always finds its way to me
  • Every dollar I spend and donate comes back to me multiplied
  • I always have more than enough money
  • All my actions result in money coming to me
  • I am wealthy in more ways than one
  • Give me money
  • I have the power to create success and build the wealth I desire

From there, make it a point to say them regularly.

You should start out saying them first thing after waking up and the last thing before bed.

You should also say them whenever you think of a negative thought.

Learn to catch yourself with the negative thought and start saying something positive instead.

If you want, you can even set your alarm at different times during the day to review your affirmations as well.

In the beginning, you will be saying them more often because you need to create the habit of positive thoughts.

You Can Change Your Money Mindset

At the end of the day, it is critical that you create a positive money mindset.

By not doing this, you will remain stuck with your finances because you are following your negative money thoughts.

Take the time to follow the steps outlined above, and you will begin to see a positive change in your finances.

And this positive change will overflow into other areas of your life as well. For more information look at some of these books about mindset.

Author Bio: Jon Dulin is a personal finance expert helping people improve their finances for over 15 years. You can read more of his work at MoneySmartGuides.com, where he helps readers pay off debt and start building wealth so they can achieve their dreams.

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