Today’s post is all about how to change your money mindset – until you do this, you’re never going to really take control of your money so it’s definitely one to read.
Having a positive money mindset is so important
You control your money, don’t let it control you
Easier said than done I know but with an up to date monthly budget plan then you should have a really clear idea of where your money is going. Check in on your bank balance every couple of days, if not daily then you’ll be in control of your money rather than just burying your head in the sand and letting it control you.
Short term pain = Long term gain
Can you believe I just said something that corny? It’s true though, by being sensible now, you can really make a difference for you of the future! For example, what can you do without now that will give you some spare money to invest or save for the future? At the moment, I save £250 a month in a share scheme with my work which is a fantastic scheme where you literally can’t lose money because the worst that can happen at the end is that you get your savings back if you don’t want to use it to purchase shares at the option price. It’s a lot of money and there are times when I really wish I had it in my bank account rather than in a shares account but I make it work because I know that in the end, I’ll be glad that I did. In the past, I’ve always looked at this annual scheme and either put a small amount of money in so I wasn’t really seeing a big benefit, or even worse, I’ve canceled partway through so I could have the small lump sum that I’d built up to help me through the month.
The money you have in overdrafts or credit cards is not your money
It’s easy to justify buying something because you have an overdraft to use or because you can just pop it on your credit card and pay it back bit by bit but until you realise that it’s not actually your money that you’re spending and shouldn’t be relied upon or even used unless it’s an emergency then you’re not going to get in control of your finances.
Stop thinking about what others have and decide what you want
What do you want out of life? I know that a lot of the reason that I save money is so that I can travel (when I finally can again) and that motivates me more than pretty much anything in life. If I focused less on that and more on what the people around me had then I’d be spending money on things that didn’t really make me feel fulfilled and would be less motivated to be sensible with my money. Does that make sense to anyone other than me? 😂
Make a plan
Do you have a long-term plan for your life? My goal is to be happy in a house I love with the mortgage paid off in the next 10-15 years so that helps me as I know what I need to do to get there. You might have a different goal – maybe to pay off a car loan or other debt or to save up for a holiday somewhere nice. Whatever it is, then do what you can to get there in the time you want. Keep it in mind in your monthly budget and work towards your goal, slowly but steadily.
Sacrifice the things you won’t miss
Giving up a takeaway every month could save you £20 which might not feel like a lot in the grand scheme of things but it adds £240 a year to your savings pot. Going without your weekly Starbucks or Costa (if you have one) is almost another £20 a month going into your savings pot and in reality, would you really miss it? If you have a plan and you know what the money you’re saving each month is going towards then it feels like it’s not so much a sacrifice.
Having a positive money mindset really does make a difference – try it and see. 😇
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