Money—its presence or absence—plays a significant role in your life, influencing not just your financial situation but also your emotions, relationships, and sense of well-being. Yet, your attitude and behavior toward money (money mindset) are often shaped by complex psychological factors that you may not fully understand. 

Taking the time to explore the behind-the-scenes reasons you feel and believe the way you do about money will help you gain valuable insights into your money mindset. It can help you identify and reshape limiting beliefs that may be holding you back from achieving greater financial success.

One of the key factors that influence your financial decisions is your upbringing and early experiences with money. What did your parents think about money? Your friends? What kind of money conversations did you overhear from adults in your life? Now, consider your teenage years and your first job. Did you have trouble finding a job? Did your friends get to do things that you couldn’t because they had money, and you didn’t?

All of these things had an impact on you, though you may have been unaware of it at the time. Your life experiences affect how you feel about money, and even though many of the negative feelings you formed may not have been your fault, only you can change them. Emotions strongly influence your decision making, but it’s crucial to incorporate wisdom as well.

The good news is you can break through a negative money mindset and replace it with one focused more on stability and abundance. Here are seven tips that can help you shift your money mindset:

Self-awareness

This is where it all begins. Take the time to explore and examine your beliefs and emotions around money. Identify where those attitudes came from or how they developed. Once you’ve done this, you are well on your way to a brand-new outlook on money.

Your Reason Why

As you work to create a new money mindset, you’ll need a strong reason that pushes you to keep going, even if things get tough along the way. Your WHY is the driving force. For example, if you grew up watching your parents be stressed out about money all of the time, and you witnessed their health spiral downward with each passing year, then you’re probably going to have a powerful sense of urgency about taking steps to ensure you don’t repeat the same pattern. That’s just one example, and your WHY may be very different. What reason is driving you?

Create Goals- But Not Too Many

Having a goal is important to your success but be sure not to take on too many at once. I’ve coached many people to better financial health, and one thing I’ve noticed is that most of them set too many goals at once. They end up feeling overwhelmed and unsure about where to start, so they do nothing. Your brain is wired in such a way that it needs to see some success before it fully commits to a new way of living. Start with one goal and take steps to reach it. Once you’ve experienced a few victories, your confidence will grow and so will your motivation to continue. If you do this, you will reach your financial goals.

Take Action ASAP

Everyone has something they wish they’d have started earlier, but don’t fret over the past. Whatever your financial goals are, start today. Right now. Make a decision, start a side hustle, pay off a debt, start investing—whatever it takes. A year from now you’re going to so glad you did.

Beware of Perfectionism 

You’re going to be doing and thinking of new things. You’ll make mistakes occasionally, but don’t beat yourself up just because you stumbled. It’s all a learning process and everyone goes through it. Get back up, brush yourself off, and recommit to your goal. In moments like these, revisit your “why” and remind yourself of the reason that’s driving you to make changes.

Self-talk

Your internal dialogue is influenced by your subconscious mind. If you want to shift your mindset, then you’ll need to change how your subconscious mind thinks. The key to doing that is self-awareness and using your conscious mind. Through practice, you can become increasingly aware when you’re reading from a negative script. When that happens, you can consciously choose to create a different thought. For example, if your little voice inside says, “I can’t afford that,” you can switch things around and instead say something like, “What do I need to so I can afford to buy that?”

Avoid the Comparison Trap

Thanks to the world of social media and the Internet, it’s easier than ever to compare your progress, life-status, and financial situation to everyone else. This is a trap that will never yield  anything positive in your life and can even lead to your financial ruin. When you compare yourself to others, you’re taking your focus off of your own dreams and aspirations. Avoid the pitfalls of comparison and keep your attention on your own life. Create goals that are attainable and meaningful to you because that’s where you will find joy.

In the end, shifting your money mindset can be challenging, but it isn’t all that complicated. You simply must think and behave differently than you did in the past. Identifying and reshaping your limiting beliefs about money will propel you toward greater financial success and fulfillment, and with every negative belief you replace with a positive one, you’re one step closer to financial well-being.