You have a relationship with money. Everyone does, but not everyone has a healthy relationship with money. Your money relationship is not determined by how many dollars you have the bank or what your savings looks like. Your relationship with money is about how you view money and how you use it to improve your life.
So, how do you know if your money relationship is a good one or a bad one? Here are some signs that your money mindset could use some improvement.
Do You Have An Unhealthy Money Mindset?
Jealousy and Bitterness
You feel a pang of disappointment then jealousy when you see someone buy something you wanted but can’t afford right now. You see your friend taking her kids to Disney World for summer vacation while your family is struggling just to keep food on the table. You feel angry and bitter whenever you think about it.
These feelings are understandable. It’s frustrating to struggle with money when it seems like everyone else has it so good. Acknowledge these feelings when you encounter them but don’t focus on your feelings. Negative feelings hurt you in the long-run and make it harder for you to improve your own money situation because you’re so busy keeping score.
You have to also understand that everyone has their own journey. Turn those feelings of jealousy into gratitude and thankfulness, for yourself and the people around you. So be grateful for what you have right now and replace jealousy & bitterness with happiness for those around you that can afford to do those things now.
Be happy and excited for the friend taking her kids to Disney World and acknowledge that one day you’ll be able to do that too if you want just not right now. Please your friend can give you tips and tricks when she gets back so you can plan your trip. See it’s a win-win.
Hoarding What You Have
When you hear the word ‘hoarding’, you think of houses filled to the brim with useless items. But some types of hoarding are less obvious than that. It might be that you’re holding onto a closet full of old clothes because you’re afraid you might need them at some point. It could be that you keep things—even broken things—because you think you’ll find a use for them someday.
This type of hoarding doesn’t interfere with your daily life, but it does affect your relationship with money. You’re subconsciously sending yourself the message that you don’t have enough and you never will. Instead of living in beautiful abundance and trusting that you’ll have enough to meet your needs as they come, you’re closely guarding your things.
So have a decluttering session. This may take a week or months, but during that time go through every room, shelving & cupboard to see what you’ve been holding onto that should be in the bin. After you do this the first time, schedule time in to do this at least twice a year.
When you declutter you home, you declutter your mind and physically open up space for new opportunities to come your way.
Not Investing in Yourself
Often, solopreneurs and small business owners reach a plateau. Getting to a point where you can go no further in your business or in your life unless you invest in yourself first. For instance, getting your business to 6 figures and it staying at that same 6-figures for 2-3 years without increasing significantly. You know your business is capable of getting to 7 figures but you just seem stuck. You could join a mastermind full of 7 figure business owners to start understanding what they do differently or you could try to figure it out yourself with Google & YouTube Videos.
Another example in your business would be if you’re a motivational speaker but you’re only getting booked for small events. You want to speak to bigger crowds in larger venues. You could continue to struggle for a few years or you could invest in yourself. Hire a coach to help you grow your speaking business. Book a session with a speaking consultant to ask for advice. The first step to changing your financial outlook is to acknowledge that you’re not happy where you are. Once you do this, financial doors will begin to open for you and you’ll discover a better relationship with money.
Investing in yourself is pivotal to your growth, so whether that be Coaching, Masterminds or High-Level Courses and programs ensure you don’t get stuck by making the right investments for your growth.
Negative self-talk can destroy your financial future if you don’t check yourself and adjust your self-talk.
If you’ve ever heard the statements below come out of your mouth—or even in your head—then you’re engaging in a damaging habit known as negative self-talk. By telling yourself these lies (and yes, they are lies) you’re reinforcing the beliefs that go along with them.
- “I’ve never been good with money.”
- “I hate budgets.”
- “I’ll never be a 6-figure earner.”
- “My market won’t pay premium prices.”
What you visualize and believe is what becomes true.
Tell yourself that you’re not good with money, and you won’t be. Believe that budgets are horrible and limiting, and you’ll resist creating one. Convince yourself that you can’t earn a 6-figure income, and you won’t.
It’s not “the secret.” It’s a scientific fact. Known as a self-fulfilling prophecy, this kind of self-talk results in poor performance simply because we act as if it’s already true.
If you tell yourself that you’ll never be a 6-figure earner, you will not do the things that 6-figure business owners do. You won’t work to grow your mailing list (“No one reads my emails anyway”), you won’t increase your coaching rates (“It’s not like I’m some top-earning coach”), and you won’t build a brand worthy of a 6-figure income (“A beautiful brand isn’t necessary at this income level”).
By contrast, if you act and think as if you already are a 6-figure earner, you’ll approach your business quite differently. Your confidence level will increase. You’ll present a very different brand to your prospective clients. You’ll go out of your way to connect with those who can and will afford to pay your higher rates.
Combating Negative Self Talk
The first step toward changing your negative self-talk is to simply acknowledge that you do it. Tick a mental checkbox every time you catch yourself making negative statements, whether out loud or in your head.
Make a note of the ones that come up most often for you, and identify their origin if you can. For example, if your ex-husband continually berated you for your spending habits, chances are your “I’m no good with money” mantra can be laid right at his feet. It’s time to turn that thinking around.
The next time you catch yourself saying “I’m no good with money,” take a minute to recall 5 instances where you were good with money. Maybe you paid off your credit cards or saved for a house or built an emergency fund. Rephrase your self-talk to, “I used to be bad with money [if that’s true], but now I make smart choices to achieve my goals.”
Just as negative self-talk becomes a self-fulfilling prophecy, so does positive self-talk. Reframe your thinking, and your business finances will certainly improve.
The Last Thing You Need to Know About Having a Negative Money Mindset
You now know that we all have a relationship with money. Some are good and others are bad. You can now spot if you have a bad negative money mindset if you experience jealousy, hoarding stuff, not investing in yourself and negative self-talk.
The key to overcoming all these signs is to first acknowledge which ones you’re experiencing and then take action to move aware from that feeling or behaviour with actions like gratitude and replacing negative self talk with positive statements.
If you want to improve your money mindset and how you handle money as an entrepreneur then download my free report the 5 Money Mistakes New & Struggling Entrepreneurs Make and How to Avoid Them.