There’s an old saying that goes, “Money doesn’t buy happiness.” While the sentiment is true – money isn’t everything and there are many components of life that lead to contentment and fulfillment – money sure can help remove some serious stressors from your life. Being good with money enables you to worry less about emergencies that pop up from time to time. It provides you with more freedom to pursue your passions in life — one of which may be pursuing a career or side hustle that leads to more money. Money isn’t everything, but having more than enough of it can help you actualize the life you want to lead.
To cut down on your money issues, it helps to adopt a money mindset. But what is this, how do you maintain one, and what are some best practices you can follow to do so? Let’s take a deeper dive into the mentality behind a money mindset.
What is a money mindset?
A money mindset is an approach to personal finance in which you can focus your time and energy on moneymaking activities. That’s not to say it’s all you focus on. It also doesn’t mean you should disregard ethical concerns or how you make your money. But money comes easier to some people than it does to others, and it’s those who put themselves in the right frame of mind to earn more.
But by adopting a money mindset in which you view money as being freely available once you tap into the right skill sets or resources, you’ll find that you optimize your ability to make money. You obviously have to approach this realistically. For example, if you’re a restaurant owner, the likelihood that you become a billionaire from that restaurant is probably low. But if you work hard, apply the right principles, and do your research, can you be successful? Absolutely. You may become so successful that you open multiple locations, paving the way for potential millionaire status from your initial investment.
The key to understanding a money mindset is to view yourself as your greatest moneymaking asset. Your talent, skills, and knowledge all contribute to your ability to make money. If you’re not making enough money at the moment, it just means you should adjust your strategy.
How do you adopt and keep a money mindset?
The first key to adopting and keeping a money mindset is to not personalize your failures with money. It’s easy for people to think negatively about the bad financial decisions they make. But part of having and keeping a money mindset is making dispassionate, rational choices about what to do with your money as well as how to make more.
View you and your ability to make money as a business. Make a mistake? Simply classify it as a bad business decision, learn from it, and move on. Don’t allow it to eat at you mentally — but don’t make the same mistake twice.
Another way to view your moneymaking ability as a business is how you use your current financial resources to support making more money. You’ll want to invest in your ability to make more money. This means developing new talents and skills that aid your ability to earn more.
For example, let’s say you only speak one language (English) but work in an industry in which being bilingual and speaking Spanish affords you more opportunities. Having a money mindset means purchasing a course that assists you in learning Spanish in order to broaden your professional horizons. Yes, that may involve spending money and time on mastering the language itself, but it can benefit you financially in the long run. It expands your career opportunities and can also help you develop better business relationships with Spanish-speaking colleagues.
You can apply this line of thinking no matter what industry you enter. Adding additional skill sets that open up new business opportunities is part of maintaining a money mindset. But how do you continually add valuable skills?
How embracing lifelong learning also feeds into your money mindset
To develop valuable skills, it’s important to remain open-minded and ready to learn. That’s why you should embrace the concept of lifelong learning.
What is lifelong learning? For many individuals, learning begins and ends with their school years. Elementary, middle and high school perhaps followed by university, community college, or trade school. This is when the majority of people learn, of course, so this doesn’t come as a surprise. But what differentiates those with the ability to quickly and effectively add new skills — and those who can’t — is that people who can are usually lifelong learners. They continue their pursuit of learning well after they’ve left a classroom. This can include pursuing independent study, paying for a private tutor, or doing their own research online.
Lifelong learning can be done simply for one’s own interest. It can also be done to add skills that make one more valuable in their chosen industry. By adopting an approach to learning that positions you as an eternal student, the lifelong learner is always ready to capture and take on a new skill that they will then be able to profit from.
Best practices for maintaining a money mindset
Once you’ve answered the question, “What is a money mindset?” it’s important to understand the best practices associated with maintaining it. This includes:
Maintain a financial journal, where you document all major financial decisions and the reasoning behind each. This will help you crystallize why you’re making the decisions you are with your money.
Learn from a financial mentor. This can be a financial advisor or simply a friend or relative who is good at making money. Talk to someone who is talented at building revenue streams and try to emulate what they do.
Don’t overthink it. There’s a wealth of financial advice available on the internet. Don’t try to complicate your approach to earning money. Try to laser focus on building wealth through your work, assets, and/or investments. Doing too much research online will leave you feeling confused.
Ultimately, a money mindset is all about putting yourself in the best position possible to make as much money as possible using what you have available to you. By following the tips and tricks outlined above, you can build a money mindset that can then optimize your bottom line.