Know your money mindset

We absolutely love that in 2021, personal finance is something that's discussed more openly. However, we know that for a lot of people, this is not an appealing topic of conversation! There are all kinds of attitudes to money, and all kinds of emotions surrounding it — from confidence, gratitude and optimism, to fear, shame and panic.

Whatever your money mindset, it's worth taking a look at where you sit on the spectrum – it's the first step in taking charge of your finances. It could be a matter of reading the right book or speaking with a finance professional who you really click with.

What do we mean by money mindset?

Your money mindset is about your approach to earning, spending, saving and investing. Usually, your money mindset is a subconscious set of beliefs, which could stem from your childhood or previous experiences with money. Understanding your money mindset can help you improve your financial habits. After all, knowledge is power, right?

There are two main attitudes towards money: optimism and abundance, and scarcity and pessimism. 

Optimism and abundance

People who feel optimistic about money have confidence they'll have enough and find it easy to save and plan for the future. They probably have goals (that they believe they can achieve) while still appreciating what they already have.

They feel positive about money and generally spend within their means, save for the future and manage their debts well. 

Scarcity and pessimism

People with an attitude of scarcity and pessimism generally have negative views about money, which can bring on feelings of anxiety, shame or fear.

They feel undeserving of wealth, or jealous of others with abundant wealth. They prefer to spend their money rather than save for the future, because they never know when they're going to lose.

They can feel unmotivated to take action and often avoid planning for their future, which can lead to inaction and missed opportunities.

How to improve your money mindset

If your money mindset is preventing you from reaching your financial goals, the good news is it's completely possible to change any limiting beliefs.

Start with small steps like setting some financial goals and devoting time to improving your financial literacy. Avoid comparing yourself to others, and remember to celebrate even the little wins.

And don't beat yourself up about it. Money isn't usually something we're taught about at school. It's also not something we generally discuss with friends or even family, so it's no surprise that - for a lot of people - it remains a mystery!

No matter your finance goals, get in touch for some straight-talking guidance on how to make it happen.

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1. Any financial advice is provided by Dominium Capital Financial Advisers Pty Ltd, a Principal Authorised Representatives of Dominium Capital Pty Limited ABN 54 513 176 674 AFSL 461653
2. Any credit & finance advice is provided by Dominium Capital Pty Ltd. Australian Credit Licence 461653
3. General Advice (Tax) Warning – The information provided is general advice only. It has been prepared without taking into account any of your individual objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs.
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