How Shifting Your Thinking Can Save You Money and Transform Your Life
(Updated on September 25, 2024, with fresh insights and actionable steps to help you transform your money mindset and take control of your financial future.)
Have you ever stopped to think about how your mindset affects your financial decisions? The way you approach money is more than just numbers; it’s shaped by the way you think, feel, and act. This internal compass is known as your money mindset. According to Webster’s Dictionary, a mindset is defined as “a mental attitude or inclination; a fixed way of thinking.” That mental attitude influences every part of your financial life—from how you manage day-to-day expenses to how you plan for the future.
When we’re unaware of our deep-rooted beliefs about money, we often assume our financial circumstances are set in stone. But your money story is not permanent. By understanding your money mindset, you can create the financial life you desire, even if it feels out of reach right now.
Fixed Mindset vs. Growth Mindset: Which One Are You?
There are two primary types of mindsets when it comes to money: a Fixed Mindset and a Growth Mindset.
- A Fixed Mindset believes your current financial situation is set, and there’s no way out. It leads to feelings of frustration, helplessness, and even avoidance when it comes to your finances.
- A Growth Mindset, on the other hand, believes there’s always a way forward. Even if you’re not where you want to be financially, this mindset encourages you to keep learning, growing, and finding solutions that can change your circumstances for the better.
Discover Your Money Mindset
Knowing your mindset is the first step toward transforming your financial future. Take a moment to complete the Money Mindset Assessment below. This isn’t a test with right or wrong answers—think of it as a check-in to understand where you are today.
| Fixed Mindset | Growth Mindset |
| I never have enough money | I always have enough |
| I can’t afford it | I will budget for it |
| Other people are luckier than I am | I create my own luck |
| I can never save | I have a savings plan |
| I have more month than money | My budget works for me |
| I will never be able to retire | I invest in my future |
| I will never get a better paying job | I always seek new opportunities |
| Budgeting just doesn’t work for me | I have a system that works for me |
| I live paycheck to paycheck | I tell my money where to go |
| I focus on reducing debt | Focus on income growth and saving |
| Money is hard to manage | I’ve learned to manage my money |
| I focus on what I don’t have | I focus on my goals |
| I don’t need to learn about money | I learn new money tips constantly |
| Money is a source of stress | Money is a source of joy |
| I am not good enough | I am good enough |
Take a moment to reflect on which mindset is more dominant based on which column has more items circled. If you find that you lean more toward a Fixed Mindset—don’t worry. The exciting part is that you can change your financial story. If you have a Growth Mindset, keep building on that positive foundation and continue seeking areas to improve..
Actionable Steps to Shift Your Money Mindset
If you identified more with a Fixed Mindset, it’s time to rewrite that script! Start by paying attention to your internal dialogue. Negative, limiting beliefs can only hold power over you if you agree with them. So when those thoughts creep in, challenge them head-on. For example, if a friend shares details about an amazing vacation and your first thought is, “I could never afford that,” catch yourself and reframe it. Instead, say, “I can plan for a vacation like that” or “I’ll start saving for a trip next summer.” This mental shift, over time, will change how you feel about your financial possibilities and give you more confidence in your ability to create a plan that aligns with your goals.
Why Money Mindset is 80% Mental and 20% Knowledge
Here’s the thing: financial mastery is 80% mental and 20% knowledge. You can know everything there is about budgeting, saving, and investing, but if your mindset is holding you back, that knowledge won’t translate into action. The first step toward improving your financial wellness and achieving your goals is understanding the patterns you’ve developed over time and working to reshape them.
By focusing on your mindset and consistently taking steps to improve, you’re setting yourself up for long-term financial success. Your money mindset is the foundation of your financial freedom, and with time and effort, you’ll find that your financial reality begins to change, too.
Take the Next Step with Confidently Solo
For women who are rebuilding after life transitions like divorce, it can feel overwhelming to take control of your finances. If you’re ready to apply these mindset shifts and create a plan that works for you, my Confidently Solo guide is a powerful resource to help you move forward. It’s designed to help you navigate your new financial reality with confidence and clarity.
Whether you’re starting fresh or working on fine-tuning your approach, Confidently Solo will provide the structure and tools you need to take charge of your finances and create a future that aligns with your goals.
Click here to learn more about Confidently Solo and start your journey toward financial empowerment.