5 Steps to Change Your Money Mindset and Achieve Financial Well-being

I was raised in a humble background and often heard phrases like ‘money doesn’t grow on trees.’ This mentality that money was hard to come by shaped my early relationship with finances and led to a poor money mindset. Honestly, I thought things would always be this way. 

It’s alarming how our environment has a lot to do with how we see things, but does it mean we cannot break free from it?

Keep reading to find out. 

I felt stuck in a cycle of financial struggle, unable to break free no matter how hard I worked or saved my coins. However, I reached a point where I was sick and tired of being broke. I realized that to change my financial situation, I needed to change how I thought about money (my mindset about money).

I had my best moment ever. I got sick and tired of being this way (story for another day).

Today, I want to share the five key steps I took to reframe my poor money mindset and set myself on the road to financial well-being.

1. Address Your Negative Thought Patterns About Money

You need to examine your thoughts and beliefs about money honestly. This will be very uncomfortable, as you might uncover dark, deeply ingrained ideas. For me, it was shocking to realize how many negative assumptions I held about wealth and wealthy people.

Reflect on your immediate thoughts about money and your reaction to financially successful people. Be brutally honest with yourself. Once you pinpoint the problematic attitudes, you can start replacing them with positive ones.

For instance, what is your attitude towards people with money? Do you believe money is evil? These are negative attitudes you must replace. The positive attitude is this: Money is not evil. It is a tool that can empower me, my family, and those in my community. 

2. Educate Yourself About Personal Finance and Investing

In another video, I shared how I wanted to start trading but needed to figure out how. I called a couple of people in my circle who were doing it, and they gave me advice. But I had to put in the work myself. I listened to many YouTube videos and read many books, and I’m telling you, there’s power in educating yourself.

Choose to educate yourself. The work I put in then has proved fruitful repeatedly in my life, empowering me to take control of my financial future. Remember, it does not happen overnight. You have to be consistent.

Fortunately, there are tons of FREE resources available to educate yourself about money. Take advantage of these free seminars, books, and YouTube videos on money issues. Here are a few resources to help you start learning.

• Some foundational books in this area include ‘The Total Money Makeover’ by Dave Ramsey, ‘Rich Dad Poor Dad‘ by Robert Kiyosaki, and ‘The Intelligent Investor‘ by Benjamin Graham.
• Websites like Coursera, Udemy, and Khan Academy offer personal finance and investing courses. These range from beginner to advanced levels, with some being free. 
• Podcasts such as ‘So Money‘ with Farnoosh Torabi, ‘The Dave Ramsey Show,’ and ‘The Bigger Pockets Podcast’ focus on personal finance, debt management, wealth building, and real estate investment. 
• Online tools and apps such as Mint, You Need A Budget (YNAB), or Personal Capital can help you manage your finances, from budgeting to tracking investments.

Don’t be afraid to start small. Even learning the basics of budgeting or saving can help you avoid mistakes that will leave you broke and in debt. 

3. Set Clear Financial Goals

You can’t tell me you don’t want to be broke, yet you don’t have a goal. You must start working with a budget and stick with it. This is necessary to save well and improve your financial health. 

A study by the University of Stirling found that people who set goals and educate themselves on financial literacy become better savers. Setting clear financial goals will keep you focused and determined on your path to financial well-being.

As with everything else, start small. Even a two-dollar deposit every week will amount to significant savings in time. 

4. Be Grateful and Start Affirming

What happens when most of us can’t afford to pay our bills? We complain a lot. I have also made this mistake plenty of times in the past. However, complaining will do you no good. 

What should you do instead? 

Start speaking the things you want to see in your life concerning money and believe that God will help you. You’re speaking faith, that which you cannot see but believe you will. At first, this will sound weird, ridiculous, and foreign, but with time, you’ll start to see a shift in your thinking and attitude, which will only become a lifestyle once you do it consistently. Practicing these daily affirmations and gratitude will fill you with positivity and hope for your financial future.

Related: 6 Biblical Principles Of Money Management For God-approved Success

5. Surround Yourself with Financially Positive People

Finally, surround yourself with people who have a healthy relationship with their money. (Note that I did not say rich; I said healthy relationship.) This means people who have their priorities straight and their money basics down. You can’t tell me you want to save for an emergency fund, but all you do is go out with people who want to go shopping every week and have no emergency fund. 

These pleasures are not bad, but you must be honest about what matters most and the changes you want to make. That’s why you need people who prioritize the essentials, stick with their budgets, save, and invest. 

Reframing a poor money mindset will not be a one-time thing. In fact, you’ll have to learn and unlearn a lot of things. However, every small step will give you a healthier money mindset and a better financial future.

Final Thoughts on How to Change Your Money Mindset 

Transforming your money mindset is a journey, not a destination. It takes patience, self-awareness, and the willingness to challenge deeply rooted beliefs. Remember, financial freedom starts with your mindset – it’s about seeing money as a tool, not an obstacle. By addressing your negative thought patterns, educating yourself, setting clear goals, practicing gratitude, and surrounding yourself with financially positive influences, you’ll begin to see a shift in your financial reality. The road may be long, but every step forward brings you closer to financial well-being and the life you deserve. Keep moving forward, stay consistent, and believe in your ability to create a prosperous future.