Never Lose Your Money Mindset Again
Most people face challenges when it comes to managing their money. Why is it so? Yes, You may be interested to know what makes one person successful with money and another give up and why.
As a financial planner for the last 12 years, I have communicated with my clients and helped them achieve financial security. However, it is a contineous process for them to discuss many things during the financial planning journey. And many enquiries come for the initial discussion about financial planning. Whether they became my client or not, I got a lot of input about human behaviour related to money when interacting with their money management. With many interactions with different people in my profession, I believe, “It’s simple, and it’s their money mindset.”
Your belief about money, yourself, and your world shapes how your life will move. Everybody can decide whether to move them forward financially or set them back. Yes, you are also facing the same ability to choose money.
I recommend that my clients follow money principles like making a budget every month, spending less than they earn, and not using debt to buy stuff. Whether you give importance to this principle or not does not matter here. Your belief, not it possible to live that way or are not inspired to live that way. It’s your mindset about your money. Many people think that they will wake up one day and will retire. Yes, readers, they hope to manage money more seriously later in life or think cash will only be for wealthy people.
If you face money management problems, you must change your mindset. Nobody can make you feel and act on this money behaviour. Your parents, spouse, friends, and I can’t make you care about yourself. Keep in mind that it’s on you. You have to change your mindset.
Initially, an enquiry needs clarification about the financial planning process due to India’s low awareness and financial literacy. Nothing bothers him when he gets information about the financial planning process and about professional help to manage their money. In my office, when any enquiry decides to make a financial plan and move accordingly with the financial plan, he has changed his mindset. It means that you have to determine your money behavior. The good news is that you can.
Your Money Mindset
Everybody’s money mindset is their unique past beliefs, parents’ influence, peer group interaction, and attitude about money. What about you? Dear readers, it influences your money decisions, whether it is spending, saving, or managing money.
For your understanding, let’s share my experiences with you. One of the enquiries said, “I am 28 years old now. My father advised me to invest in bank fixed deposit and PPF (Public Provident Fund) for my retirement.”
If you check the current scenario and past interest rates, you will know that 25 years back PPF interest rate was 12% pa. Now PPF interest rate is 7.1% pa, which is reviewed quarterly by Govt. of India. Bank fixed deposit interest rate is 6% pa. With these declining interest rates and the impact of inflation on your money, you are planning retirement through bank fixed deposits and PPF without calculating how much corpus you require. If you are not interested in taking any risk, then you are right. But what about the impact of inflation which is 6-7% pa. You think you are right. Check it yourself first.
It is the case with your past belief and parents’ advice which is not relevant after 25 years of their situation. Most people invest in bank fixed deposits with high-interest rates, say 12- 13% pa. All Indians had low aspirations of simple living and also enjoying life. I am not saying they don’t share high ambitions, but they always try to live within their means and enjoy life fully. Nowadays, the situation is different. You are now earning low-interest rates on your bank fixed deposits with a declining mode. The market has changed with new concepts and also new investment options.
You may think the same when considering whether to prepare a financial plan. Twenty-five years back, no financial planning concept was available in India. No ULIP (Unit Linked Insurance Scheme) scheme was available. No one moves to other cities to work and earn money. No one thinks about purchasing a house at the age of 26. Twenty-five years back, you would not get housing loans in your early earning career. You cannot compare today’s generation’s aspirations and earnings with the previous generation. There will be hugely different in it. Now everybody is preparing their financial plan and following it. To make a financial plan or not, it’s your decision and your mindset.
A person who has a healthy money mindset believes things like:
- I can tell myself not to buy anything, but I have all the freedom to spend.
- I don’t compare my situation with others.
- I am confident and possible to achieve all my financial goals in life.
- I help other who is needy in life.
- I follow my monthly budget, which inspires me.
- I know the difference between needs and wants and managing money.
“For one who has conquered his mind, a mind is best of friends, but for one who has failed to do so, a mind is the greatest enemy.” ~Lord Krishna.
Your money mindset helps you achieve your financial goals and how you feel about life. Your objective to be in a happy money zone is in your hand. You believe you can change and will win. Yes, you will.
You might think, “How to change my money mindset?” You can adjust your money mindset to achieve your financial goals.
Here are things to do to change your mindset.
- Decide to live within means.
- Focus on your life values
- Always ask yourself what matters to you
- Read affirmations to improve your money mindset
- Don’t think more about your past financial mistakes
- Learn from past mistakes and move
- Take professional guidance in money mindset coaching
- Follow fin-influencers to improve your money mindset.
- Use money mindset quotes to inspire you.
Your money mindset is critical when considering improving your finances.
Remember that your goals may revolve around becoming debt-free, saving money, and investing. Still, it will be easier to accomplish with the proper financial mindset.
Improve Your Money Mindset!
I am a CERTIFIED FINANCIAL PLANNERCM, CHARTERED WEALTH MANAGER®. For the moment, I have shared my experience growing up with you because it had a tremendous impact on how I do what I do. If you have a question about your financial situation, please connect me. I would be delighted to try to be of service.
Don’t miss any future posts; please subscribe via email.