Financial freedom is something that many people dream of, but actually achieving it requires more than just having a certain amount of money in your bank account. It all starts with how you think about money—the beliefs, attitudes, and actions you have when it comes to financial matters. In this detailed guide, we will delve into the process of changing your mindset about money and reveal the important principles and practices that can open the path to gaining financial freedom.
The Power of Your Money Mindset
1. Belief in Abundance
Starting with the belief that there is an abundance of opportunities and resources in the world, your money mindset enables you to perceive possibilities instead of limitations, as you embrace this mindset shift.
2. Financial Education
By valuing continuous learning in personal finance, one can develop a strong money mindset. An investment of time in financial education enables individuals to make informed decisions and assert control over their financial future.
3. Goal Setting
When you establish clear and achievable financial goals, you increase your chances of attaining financial freedom. Your money mindset plays a crucial role in setting and maintaining your commitment to these goals.
4. Overcoming Fear and Limiting Beliefs
Having negative beliefs and fear about money can act as barriers that prevent you from progressing. However, by developing a healthy mindset towards money, you will be able to recognize and conquer these challenges, resulting in a boost in self-assurance and feelings of being in control.
Practices for Mastering Your Money Mindset
1. Mindfulness and Gratitude
By making a conscious effort to be mindful and grateful, you can change the way you relate to money. By valuing what you already have and being fully aware when it comes to your financial choices, you can make more deliberate decisions.
2. Visualization
By consistently utilizing visualization techniques, you can strengthen your conviction in achieving your financial objectives by picturing your desired financial future.
3. Affirmations
Repeating positive affirmations that resonate with you can boost your confidence and motivation, as well as rewire your subconscious mind to align with your financial goals.
4. Surrounding Yourself with Positivity
The mindset you have towards money can be influenced by the people you spend time with. It’s important to surround yourself with individuals who uplift and support your financial growth.
What Is a Toxic Money Mindset—and How Do You Get Rid of It?
Income that is considered toxic is money that you feel resentful towards, usually coming from a source that you previously had positive feelings towards. It occurs when your emotions in the relationship have taken a negative turn, but the financial connection continues to exist. We provided examples such as alimony and child support, but it could also be a situation where your estranged parents lent you money to fulfill your child’s desire to attend a private school.
Lynch clarifies that toxic money is often connected to a long and challenging struggle, which compels you to “conform, abide by someone else’s rules, remain vulnerable, ill, or damaged—everything but fully embracing your own power.” Whether received in the form of a cash settlement or a regular paycheck, toxic money enters your life through a distressing process that fosters feelings of victimhood. Its impact is particularly harmful when it diminishes its value in other aspects (such as child support elevating your tax bracket) or when it is allotted for negative purposes (like alimony used to repay a parental loan).
After recognizing the presence of toxic money, you are faced with a choice: retain it, return it, or donate it. There is no correct response, as each option carries consequences. Khan asserts that toxic money instills a sense of stagnation, but it is your emotions that determine “the amount of money you can acquire… the greater your negative sentiments towards the source of the money, the more toxic it becomes.”
If you are able to get by without the money, it is advisable to contemplate leaving the situation. Accepting it may cause negative emotions such as guilt or shame. If you require the money, the initial action towards gaining independence is acknowledging your financial reliance. The subsequent action is to control your mindset, improve your connection with money, and discover alternative sources of income. Here is a guide on accomplishing this.
Monetize something you love and would do for free.
When it comes to conquering toxic money, the invaluable saying “Your salary is determined by your job, not your income” holds true. If you have multiple sources of income, toxic money becomes less burdensome. To replace toxic money with a sense of pride in your earnings, consider activities that bring you positive energy, such as selling handmade knitwear on Etsy or offering online classes.
Regardless of the amount generated, whether it be $5 or $500, engaging in positive endeavors will decrease the significance of tainted money and, consequently, alleviate any resentment associated with it. Generating income from a pleasurable activity aids in developing financial autonomy and, subsequently, fosters a favorable connection with one’s earnings.
Change your money mindset.
Rachel Cruze, a financial expert and author, suggests that our attitudes towards money are often influenced by the examples we encountered during our upbringing. As a child, did you witness someone close to you struggling with destructive financial habits that they were unable to overcome? Did you grow up surrounded by individuals who constantly accepted the notion of never having enough money? It is possible that these perspectives have subconsciously shaped your own beliefs about money. To broaden your outlook, it is essential to seek out role models and success stories that reflect the financial future that you aspire to achieve, looking beyond your own experiences.
Cruze provides various options to transform your perspective on money, accompanied by a multitude of empowering books and practical financial strategies aimed at transforming your perception of money. By daring to question your identity and the significance of money in determining your self-value, you can genuinely counteract the detrimental impact of toxic money.
Identify mental and spiritual money blocks.
Author and influencer Katherine Hurst, from TheLawOfAttraction.com, advises that having limiting beliefs can hinder you from obtaining your desires. Unconscious beliefs about oneself, circumstances, and finances can act as barriers between you and happiness. Nevertheless, through mental and spiritual efforts, it is possible to alter your thought patterns and energy related to money.
To achieve a balanced mindset to confront toxic money, one can free themselves from a scarcity mindset. Various techniques, such as financial planning and therapy, as well as more unconventional approaches like consulting an energy healer to release physical tension and blockages, can be employed. Khan emphasizes the importance of seeking professional assistance to permanently eradicate toxic money, especially if it has been present for a considerable period of time.
