5 Tips for a Better Money Mindset

Is your Money Mindset costing you in unexpected ways?

If you have a Scarcity Mindset around money, it is costing you in unexpected ways. However, it’s not too late to change! I will give you tips to help change your Money Mindset from scarcity to abundance so you can live a life full of possibilities and financial fulfillment. 

Many of you are selling online via Amazon to try to bring in extra money for your family, pay bills, build savings, be your own boss, quit your day job, or take that dream vacation! While this is very exciting, it’s important to have the proper money mindset so you can properly leverage your income to meet personal financial needs and goals.

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If you haven’t begun to manage your accounting, or if you’ve fallen behind and don’t know how to get organized, enter your information below to get our FREE QBO Quickstart Guide including a video tutorial and Chart of Accounts specific to your e-commerce business to help you set up an accounting system with QuickBooks Online.

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Do you know what your money mindset is? Are you aware that an improper money mindset could be keeping you from earning as much as you are capable of? Do you know the difference between a scarcity mindset and an abundance mindset? Do you know how to change your money mindset?

First, what is a scarcity mindset? And what is an abundance mindset? What is a money mindset?

Money Mindset - A money mindset is your attitude, belief, and relationship to money. Your money mindset drives your ability to meet your goals. The money mindset is also referred to as your “money script.” Your money mindset was likely established during childhood. It is a subconscious dialogue that developed further from your life experiences.

Scarcity Mindset - It is the belief that everything is limited, that there is not enough. People with a scarcity mindset often make limiting statements such as, “If you are not making money, you are spending it,” “Money is the root of all evil,” or “The rich get richer and the poor get poorer.”

There is no balance with the scarcity mindset – it’s all or nothing, and as a result, they often find themselves in a nothing place, continuously scrambling to get out, concerned that the money will never last or that there will not be enough. They are often transaction oriented, keeping score in personal and professional relationships. They are suspicious and think people, more often than not, are there to take advantage of them, so it can be difficult for them to trust. Everything is a win-lose situation to them and they have difficulty considering the possibility that all parties can win in a situation. The scarcity mindset tells people there is only one pie out there, and if someone were to get a big piece of it, it means less for everyone else.

I love this quote by John C. Maxwell, it sums up the negative impact of a scarcity mindset well. “People with a scarcity mentality have a very difficult time sharing recognition and credit, power, or profit – even with those who help in the production.”

Abundance Mindset - It is an attitude and belief that there is plenty out there for everyone. This belief opens possibilities, options, alternatives, and creativity.  An abundance mindset allows for one to see all the world has to offer in order to create, grow, connect, and find joy in life. Who doesn’t want that?

The abundance mentality helps one focus on the things and actions they can take to be happier in life. They are generous, trusting, and open. They work to find the core cause of anxiety and stress and do not operate from a place of fear that things could go bad at any moment. They understand there is a difference between “being broke,” and “being poor.” Broke is temporary, poor is a mindset.

The abundance mindset knows the difference between foolishness and abundance. It is optimistic and makes decisions based on the big picture rather than one snapshot in time.  The abundance mindset knows that gratitude is as crucial as breathing. The abundance mindset knows that it is important to share, whether it is money, time, knowledge, connections, or possessions. They live by the mantra, “the more you give, the more you get.”

Before I tell you what you can do to change your money mindset, keep in mind that while you may think you know your attitudes toward money, consider that it may be possible that you are not fully aware of it, which can impact your life and finances negatively, or at the very least, keep you from meeting your potential. 

What can YOU do to change your money mindset?

Now that we all agree the abundance mindset is ideal, what can you do to change your money mindset from scarcity to abundance?

I scoured the internet and found many, many lists of what “the experts” suggest as ways to change the money mindset from scarcity to abundance.  I compiled a list of the Top Five suggestions that appeared again and again.

1.    Become aware of your thoughts – This is the practice of creating mindfulness by stepping outside of your mind and observing instead of participating. If you have a scarcity mindset and you become aware of your thoughts, you will start to notice the scarcity loop that plays over and over in your head. We can’t change what we don’t acknowledge, and so the first step is mindful acknowledgement by becoming aware of your thoughts. 

2.    Practice gratitude – Stop to think of what you are thankful for. Sometimes the everyday things we take for granted are the most important; our health, our family, a hot shower, a warm bed to sleep in or the opportunity to live another day. If you take time to appreciate what you have in life, you will not only be in a better mood, you may see opportunities you missed or had forgotten about. It is often said, “If you look at what you have in life, you will always have more. If you look at what you don’t have in life, you will never have enough.”

3.    Forgive yourself for financial mistakes, both overspending and underspending – Few people can claim they have not made any money mistakes. If that is the case, they may actually have anxiety around money (and probably other areas in their life) and haven’t taken risk, which is also a financial mistake. We learn from risk. Remember that we learned our money mindset in childhood.  If you grew up in poverty, you probably didn’t learn the difference between being broke (temporary) and poor (mindset.) If you grew up without positive money role models, you may not have learned to budget and as a result, you overspend. Forgive your family for being poor money role models. Forgive yourself for overspending when you knew it was a bad choice, or underspending because you were locked in anxiety. Your financial mistakes are not you. You are not a victim of your money history, you are in control of your future.  Mistakes are learning opportunities, so forgive yourself but don’t forget the mistake.  Remember, the antidote to scarcity is safety, so when we feel safe and no longer think the world is out to get us and our place in the world is secure, we are often more willing to risk. Risk = Reward.

4.    Stop comparing yourself to others – Have you caught yourself feeing envious of The Joneses for yet another vacation, car, or other fun things you see them do? You do not know the real details of their finances; for all you know, they are deeply in debt. Remember, when you compare, you will likely find yourself lacking, which diverts attention away from focusing on your own financial goals. The focus should be on YOU!

5.    Concentrate on growth by developing a beginner’s mindset– Become curious about other people and their experiences. Set the intention to ask others regularly about their life, what their goals are, and how they plan to achieve their goals. Practice listening to their answers and learning from what they have to say.  Because the abundance mentality craves learning and growth, you must acquire an underlying knowledge that you don’t know everything, even about topics you have mastered. Develop the beginner’s mindset, which is defined as, “an ability to maintain an attitude of openness and enthusiasm, along with the willingness to override existing preconceptions, no matter how right you think you are sure you are, how experienced you are, or uncomfortable you are in the state of not knowing!”

With these five tips, you can now go from scarcity to abundance! Remember these as you work towards consistently being in a place of abundance. Your mind and your wallet will thank you!  Be a river not a reservoir!  

Most importantly, if you haven’t begun to manage your accounting, or if you’ve fallen behind and don’t know how to get organized, enter your information below to download our FREE QBO Quickstart Guide to get you started using QuickBooks Online, including a video tutorial and Chart of Accounts specific to your Amazon FBA business.