Complete this sentence: Money is ____________.
Whatever word or words you use to complete this sentence is a good indication of your money mindset.
We all carry beliefs about money that got started during childhood and developed over the course of our lives. These beliefs influenced our ideas of what we need and want, what we love and like, and what we deserve. Those ideas taught us what to avoid and what gives us comfort and security.
Everyone has a money mindset. You may not be aware that your current financial situation is a result of this mindset. A money mindset—how you think and feel about money—creates a set of beliefs that determines your behaviors, attitude, and outlook with respect to life and money. It impacts how you manage money and your finances. Your money mindset may often vary from other people’s mindsets, because we all have different life experiences that shaped our beliefs about money. Your money mindset may have initially come from your parents and may eventually have been influenced over time by retailers, the media, and the people you’ve surrounded yourself with.
When weighing material desires such as wanting a bigger home, a nicer car, or a dream vacation against the reality of debt, bad credit, or low income, we can end up making decisions that compound our financial problems, preventing us from achieving our goals. Our emotions cannot be separated from money; therefore, we must become more ...