Rewire Your Brain: Create A Positive Money Mindset

Overview

• 6 tips to create a positive money mindset
• Create a positive money mindset through education

The first thing you need to know before you try to create a positive money mindset is to be patient. Just like your relationship with money did not start overnight, you can not change it overnight.  But, with a little patience and persistence, these 6 different tips can help you create a positive money mindset. 

1. Understand your relationship with money

To understand your relationship with money, you must deeply reflect and analyse how you think about money. This involves examining your thought process regarding money and identifying what emotions may dominate when making financial plans.

Understanding your relationship with money also includes understanding how you currently spend your money. The best way to visualise this is to create a budget, including your essential and non-essential expenses. This will help paint a picture of where your money goes and what you prioritise your spending on. 

2. Forgive yourself for any past money mistakes

Think back and try to understand if there are reasons from your past that have moulded your relationship with money. You may have had multiple personal loans that had an impact on your life, or you had to take out an emergency loan for situations out of your control.

Regardless of what has happened, it is time to leave these in the past because your positive money mindset needs to remove past mistakes to move forward. Learn from your past mistakes and take them as life lessons.

3. Change the way you internalise money conversations

The way that you speak about yourself internally can change the way you view money. For example, if you are hard on yourself about past money mistakes or you criticise yourself for overspending then your view on money will be negative. 

This could affect you when you try to save money or plan to get ahead of your bills. The way that you speak to yourself influences your behaviours with money, that is why it is so important to be patient, kind and learn from your past rather than punishing yourself.

4. Focus on your money goals

Once you have learnt to be kind and patient internally, you can start to manifest your financial goals and how you will achieve them. Don’t just think about it — take action!, Write these goals down and create a budget that puts you on track to achieving them.

Whether you have aspirations to start your own business, save and travel around Australia, or even want to set yourself a savings challenge, manifesting your money goals can be a powerful way to start saving money.

When you set aspirational goals (with dates) you can create a timeline and work out how they will be achieved. Your money behaviours will have a purpose that can help keep you motivated to achieve your goals.

5. Stop comparing your financial situation to others

One of the worst mistakes for our mindset is to compare our financial situation to others. Comparing ourselves leads to being demotivated and feeling like you are behind others or “stuck in the mud”.

Everybody has different outlooks and behaviours on money, which is why there is no cookie-cutter approach to creating a positive money mindset. One of the best things you can do to start changing your mindset is to solely focus on how you can better yourself and your financial situation. 

6. Create strong money habits

Your spending and saving habits are the most important ways to create a positive money mindset. If you spend as much as you earn, then it is impossible to save money. 

Use the budget that you created to understand where your money is going and how you can cut back on expenses. Consider your subscriptions like entertainment, gym memberships, phone bills, utility bills, and whether there are ways to cut back.

To help create strong money habits, utilise automatic transfers (if your bank has this feature) or transfer a set amount of money when you get paid into a savings account. This reinforces fantastic money management but also forces you to live within your means. 

Your budget and financial goals will determine exactly how much money you will be able to save. Here is exactly how much money you would have if you start saving consistently for exactly one year:

Plus, you will still earn interest each month if you do not touch the money in this savings account. If you can create strong money habits, and find ways to cut back on your expenses, then your ability to save money will transform.

For you to create a positive money mindset, you need to not only understand your relationship with money but also understand how money works. Educating yourself on simple financial concepts such as compound interest and debt management can transform your mindset. 

Educating yourself will help you have a deeper understanding of money and help you make smart and well-thought-out decisions. You will be able to pay your bills on time and then allocate any excess money to savings. Take control of your finances and create a positive money mindset.

Chase your money goals with Red Tree Finance

Whether you want to use your new positive money mindset to chase your dreams and start a business or experience the world on holidays, Red Tree Finance can help! We offer same-day, online loans up to $5,000.

What does it mean to have a positive money mindset?

A positive money mindset means understanding how you make and spend money, strategies to save, being understanding and not comparing your financial situation to others. 

How to heal your money mindset?

The best way to heal your money mindset is to consider why it was broken in the first place. To change your mindset around money you should:

• Reflect and understand your relationship with money
• Forgive yourself for any past financial mistakes
• Change the way you internalise money conversations
• Manifest your money goals and create a purpose/goal
• Stop comparing your financial situation to others
• Create strong money habits and behaviours

What are positive money beliefs?

A positive money mindset is changing your relationship with money and forming strong saving habits. Remove the stress and anxiety of previous money mistakes and focus on transforming and creating a positive outlook on money.

The information provided in this blog is of a general nature and is provided without considering your specific objectives, financial situation, or needs. It is intended for informational purposes only and should not be relied upon as financial, investment, or other professional advice.

Before making any financial decisions or taking action based on the information presented, you are strongly encouraged to assess its appropriateness in light of your individual circumstances. Red Tree Finance does not intend to provide personalised financial advice, and you should seek independent financial, legal, tax, and other relevant advice tailored to your unique situation.