FINANCIAL

Money Mindset.                               by Ben Scott.

This is going to be a 10 part financial series.  Disclaimer: I’m not a licensed financial planner or licensed broker of financial products.  I’m just someone who has spent a lot of time studying the behavior associated with making, spending, and saving money.  Through this series, you may be able to find some hope, encouragement, or knowledge that you may be able to use to further your financial position.  

This series will not be covering specific investing plans or strategies.  We will be addressing how we look at money, how we feel emotionally about money, and how we can shape these practices to build a better financial place.  Your mindset is the building block to financial success and the focus of much of this series.  Many blocks are used to construct a solid financial foundation.  Each block is created by ideas and habits formed by your mindset.  

The definition of Mindset - A habitual or characteristic mental attitude that determines how you will interpret and respond to situations (i.e. Money).  A lot of times we handle the flow of money both in and out without a lot of thought.  The reality is that we are handling that money within a preset habit.  This attitude with which we handle money has been built over time to the point where we rarely even think about it.  How was this mindset formed?  Predominantly, this has been shaped by the environment in which we grew up.  Most of us have grown up in families where we could easily identify the following traits, some were consumers, some were savers, some had little and struggled for necessities, and some had abundance.  These different environments in which we were raised shaped our habits and our mindset.  Some of these are very beneficial to our financial well being.  Like going to work consistently and paying for our general necessities to be able to survive.  Other habits are more detrimental to our longterm financial health.  Spending more money in a month than we generate and relying on credit to make up the difference is a habit that has negative consequences.  Our mindset is what determines our financial future, both good and bad!  This is the limiting factor to our money goals, much like the foundation of your house provides the shape and size of your house.  Your financial goals will be shaped by how expansive your mindset can be. 

What are the steps to shape, mold and change our mindset?  The first step is a period of vision.  What do you want your financial future to look like?  Be specific, write down the things you want and see for yourself.  These items can be material things but a lot of times they are more emotionally based items like - security, freedom, flexibility, confidence.  This is generally an easy step for most of us.  The second step is the hardest step, this is the part where we take inventory of the habits we have and whether they are contributing to our vision or detracting from it.  An example may look something like this - I’d like to save money for a vacation, but my weekly coffee spending is taking money away from my potential vacation fund.  The third step is changing the habit/mindset.  James Clear, the author of the best selling book “Atomic Habits”, lists the first step as “start with an incredibly small habit”.  Make coffee at home instead of stopping to buy coffee each day.   This very small change, begins to change your mindset, you start to think pennies add up to dollars instead of “it’s just a few bucks”.  Changing and forming your money mindset is a process like constructing a foundation, one block at a time.  

To recap the steps to building a Money Mindset


Money Mindset : 1  by Ben Scott 2024