Before you can strengthen your financial literacy, you first need to change your money mindset. Why is this important? Well, your money mindset is what you tell yourself about money. It directly impacts your relationship with money. What you think and feel about money determines how you talk to yourself and others and your actions surrounding money decisions.
Most importantly, your money mindset drives many of your emotions surrounding your finances. Because even if when your finances shift, your money mindset will amplify your relationship with money. Here are 4 ways to positively change your money mindset to create more abundance and strengthen your financial literacy.
1. Get Honest About Your Limiting Beliefs Around Money
Everything starts with a belief which means it's crucial to examine your beliefs around money. These beliefs are what govern your financial life. It's your attitude and your feelings and how you make decisions about money. It explains the way you spend money or the way you save it. Know that behaviors come from thoughts, and thoughts stem from beliefs. Take a moment to reflect on where you first heard about money and what was said about it in your childhood.
A few great questions to ask yourself:
What did I hear and see about money growing up?
What's one thing my caregivers did with their money that I want to replicate?
What's one thing my caregivers did with their money that I want to do differently?
Note down any limiting beliefs that are holding you back or any ways you 'unconsciously' sabotage yourself in the process of making more money. There might be some resistance within you when you answer these questions, but it's critical to move forward and get financially healthy.
2. How To Change Your Thoughts About Money
After you discover the root causes of your money mindset, the next step is to actively change your consciousness around money. There are several ways to do that. It's about rewiring your brain to think differently about money, to approach money differently. You'll have to replace those old thoughts with new ones. Start to read books about abundance and changing the narrative. Jen Sincero's book, You're A Bad Ass At Making Money, is a great start. She lived in a garage before figuring out how to change her relationship with money. Begin to spend more time with people who have positive relationships with money. That energy is transferable.
3. Money Is Energy Exchanged
Understand that money is the current of energy that flows. Even the word currency has a similar word to it, current. Money flows, and it's a tool of exchange. If you have a scarcity mindset, then you'll stop the flow of energy. How are you blocking the flow of money in your life?
4. Create A Healthy Relationship With Money
When you believe there's enough, you won't be concerned with not having enough. Find ways to shift from scarcity and lack towards abundance. A beautiful way to create a positive energy current is to be generous. It doesn't mean spending your money frivolously but giving to a cause you care about, even if it's 1%.
This not only helps you to continue the flow of energy coming and going into and out of your life, but it also eliminates the fear of money leaving. Next, find ways to be grateful for the things you already have. Having "more" of something doesn't necessarily change the situation. You amplify whatever is underneath that want and desire.
We found an excellent money exercise from Lacey Langford to create your ideal financial persona by describing your ideal and perfect financial you. If you could recreate how you relate to money, what would that be? Be playful in doing this money exercise. Take a moment to write down what your balances for your accounts would look like? How much do you carry in your purse? What do you do with your money, how does it make you feel? Do you become excited and energized? Do you feel a sense of peace and freedom? This helps to reinform the mindset you want to achieve while giving you a different vision of yourself and money.
It's never too late to change your relationship with money. It's not impossible. Once you change your mindset and your relationship with money, you can then build your financial literacy. The biggest takeaway from Clever Girl Finance is to change your financial situation. You first have to decide to become financially independent and say yes to positive wealth consciousness. Everything starts with a decision to change your circumstances.