Many of us include financial goals in our new year’s resolutions. “This year, I will put $50 from each paycheck into my retirement savings.” “This year, I will stop spending frivolously.” Financial resolutions are a great start, but as many of us have experienced firsthand, resolutions do not always stick. We start each new year with the best of intentions; We’ll floss, hit the gym three times a week, cut back on wine, and check in on our friends more often, but after the flurry of holiday activity, normal life starts back up in full force and many of our resolutions fall by the wayside.
So, how does one bypass this mid-January slump and ensure that their money goals continue throughout the year? By changing their mindset.
What is a money mindset?
Your money mindset is how you view money as a whole and serves as a driving factor behind the decisions you make about spending, saving, investing, and handling money in general. Your mindset is influenced by many factors, including your beliefs and values, your personal experiences, and how your parents and role models talked about and handled money when you were growing up. Because your money mindset drives how you make important financial decisions each day, it’s crucial to ensure that yours is both positive and constructive.
Now that you have a deeper understanding of what exactly a money mindset is, here are some ways to change yours.
Understand your values
First and foremost, you’ll need to understand exactly what it is that you believe in. What is important to you? What makes you feel most fulfilled? In our previous blog, we took a deep dive into how to discover your core values. It requires some time, introspection, and deep thought, but it’s absolutely worth the effort. Once you have a deeper grasp on what you value, begin to think about the ways you spend your money. Are they aligned? If not, how can you adjust them?
Understand your beliefs
Like we mentioned above, your money mindset is heavily influenced by your upbringing. What did you see and hear about money from parents or role models growing up? What is something your parents did with their money that you would also like to do? Did they frequently give money to charity? Did they save up for family vacations? On the flipside, is there something they did with their money that you’d like to do differently? Perhaps they made a habit of paying bills late, while you strive to always pay yours on time. Once you have a solid understanding about where your beliefs come from and why you interact with money the way that you do, you’ll have an easier time adjusting your behavior and overall money mindset.
Believe in your own success
Sure, it sounds cheesy, but the phrase “mind over matter” has been around for over a century for a reason. The first step on the road to success (with money or with anything else in your life) is believing that you can be successful. Of course, different people will face different obstacles, some big and some small, but your beliefs will influence your behavior, ultimately helping to give your goals and resolutions staying power.
At The Humphreys Group, we truly believe that when your values and beliefs are aligned with your financial choices, you can create the life you want. If you’re interested in discussing further how we can create a thoughtfully crafted financial plan and investment strategy that reflects what matters most to you, please schedule a quick call with our team.