Mindset Shifts for Financial Success
What if I told you that your mindset could be the key to unlocking financial success? In Graham Cochrane’s book ‘Rebel’ he says that “True life change isn’t random. There’s a simple 4 step formula for it: what you believe affects your thoughts, which changes how you feel, which in turn affects what you do each day. Believe. Think. Feel. Do. The amazing thing is you only need to focus on the first step and the rest takes care of itself…Believe.”
The Power of Mindset
A mindset is a rooted belief system, and it shapes our view of the world. It’s like wearing a pair of colored glasses. Our mindset shapes our perceptions and reactions, which is why the formula of “believe, think, feel, do” is so true. For example: A growth mindset believes in the ability to learn and improve. A fixed mindset may lead to stagnation and fear of failure.
4 Key Mindset Shifts
Shift 1: Scarcity to Abundance
Moving from a fear-based approach (fear of not having enough) to one that recognizes challenges as opportunities and potential for growth. If you are that person that walks to the fountain and fills your container each day, then you understand scarcity. You understand that there’s an end to the resources. You have run out before and it’s important to you to steward what you’ve been given, because you don’t want to waste it. You understand the work and effort it takes to get a refill, and you want to be wise. (Remember the parable of the man who buried his talents??)
On the flip side, if you’re that person that is connected to the fountain, then you feel it in your being. You feel the fresh, bubbling spring within you that never fails. Yes, you want to steward what you’ve been given, but it’s not from an accounting method, instead it’s more about stewarding to whom or to where you are bubbling over to. It’s staying forward focused and recognizing that you’ve been given a fresh, bubbling spring to share with the world.
Tip: Practice gratitude and focus on what you have rather than what you lack. Read ‘The Gap and the Gain’ by Dan Sullivan and Dr. Benjamin Hardy.
Shift 2: Fear to Courage
The truth is there will always be reasons not to do something. Just like there is never a perfect time to have a baby or a perfect time to buy a house. The import thing is that you take calculated risks and then you do it scared. Courage is not the absence of fear, it’s the ability to do something despite the fear. It’s 100% normal to be afraid as you face challenges such as change in your life, but you must ensure that fear that does not hold you back. Analyze the pros and cons, determine your path forward, then have the courage simply to take the next step on that path.
Tip: Identify a specific situation you’re afraid of and analyze the pros and cons. Read ‘Do It Scared’ by Ruth Soukup.
Shift 3: Fixed to Growth
Oftentimes we do what we’ve always done because it’s easy and comfortable. The definition of insanity is doing the same thing and expecting different results. Shifting from a fixed mindset to a growth mindset means you seek out opportunities to expand your knowledge and stay adaptable as your knowledge grows. The truth is that anything healthy grows. Reflect on whether you’ve become complacent and are drifting in some areas, and choose one way you will grow this week.
Tip: Set aside time each week for financial education—reading books, listening to podcasts, or attending workshops.
Shift 4: Consumer to Investor
When we come into this world as babies, we are consumers. We cannot care for ourselves or our needs. As we grow and mature we begin to be contributors. It’s not any different on your wealth journey. There comes a point when you must change your mindset from spending to building wealth. This may mean choosing not to eat dessert at the restaurant or choosing to not buy four new outfits for the month. Instead, you are choosing to be intentional with the wealth you have so it can start working for you and your goals.
Tip: Start small—consider savings accounts or stocks; or just start to research and learn about investing.
Additional Practical Steps to Implement These Shifts
Create a Vision Board: Visualize what success looks like for you. Studies show that success begins in the mind and taking time to visual the future you want creates a firm foundation.
Daily Affirmations: Use positive affirmations related to wealth and financial success.
Seek Professional Guidance: Don’t navigate this journey alone. Engaging a professional can help you create a tailored financial plan that minimizes tax liabilities and maximizes your wealth potential. This partnership will keep you focused and motivated.
Remember, the way you think about money can drastically affect your financial future. Spend time reflecting on your mindset. Identify which mindsets you need to focus on and share your thoughts in the comments.
