What is your money mindset?

Whether you know it or not, we all have a money mindset.

A money mindset is like any other mindset. It is an outlook or a perspective on things. It’s how you view the world.

So then, your money mindset is your attitude and your beliefs around money. Our money mindset is often shaped throughout our childhood. If we look closely enough, we will notice our money beliefs are deeply ingrained in us. As children we are taught what is right, what is wrong, what it is to be “normal”. What’s interesting about this is, there is no “normal”.

What is normal for one person, or one family, may seem unusual to another.

Take the example of a wealthy family who, through many generations, have been taught that investing in the share market is one of the keys to building wealth. Conversations about investing regularly happen at the dinner table. If you are born into this family, you will grow up to believe that investing in the share market is normal. You may be encouraged to invest at an early age and to invest regularly; that is how you grow wealth. You won’t fear the market falls, instead you will be taught to buy when everyone is fearful.

Now let’s look at a middle-class family who don’t invest in the share market. This family believes you need to work hard to be successful and financially secure. If you are born into this family, you will learn that hard work equals more money. You may be taught to work as much overtime as possible, trading your time for money; that is how you grow wealth. This family remembers when the crashes of the stock market became global news: the Dot-com bubble burst in 2000, the Global Financial Crisis in 2008 or the Coronavirus crash in 2020.

Does this mean if you work hard you will be financially successful?

Does this mean investing in the share market is risky?

Your answers will largely depend on your money mindset. Or the money mindsets and experiences of your parents, which have been passed down to you.

I’m here to tell you that it is possible to free yourself of a money mindset that is not serving you.

It starts with awareness.

But awareness alone isn’t enough. Making incremental changes to our thoughts will lead to changes in our behaviour. Over time, our money mindset will mature and move to one which serves us well.  

Connecting our Psychology to our Behaviours

It recently dawned on me the extent to which my parents’ beliefs and behaviours around money are so deeply rooted. A few nights ago, my husband picked up the dishwashing liquid and sponge to start washing up and instinctively, without missing a beat, I said “Oh my gosh. Again?” as I plucked the sponge right out of his hand. He smirked. He knows there’s only one method of washing up in our household; plugging the sink and filling it with hot, soapy water.  

As I took over the task of washing the dishes, I contemplated the answer to this question:

Why in the world was I getting so worked up about how the dishes are washed?

It was in that moment that I remembered my mother had constantly told us that the “proper” and “cheapest” way to wash the dishes was to fill the sink up with hot, soapy water.

You see, if you let the water run, that is “money running down the drain”.

A-ha!

I made the connection to this ridiculous reaction of mine and an ingrained belief I had from childhood. Now that I’m aware, I can make progress to enhancing my money mindset. Because if we’re being completely honest, I could save a lot more money if I stopped eating out compared to the amount of money I could save by washing dishes a certain way.

In all aspects of our life, we engage in certain behaviours without pausing to reflect. By simply slowing down and paying more attention, we have immeasurable power to shift our money mindsets in a positive direction.

All this to say, I will continue to wash the dishes in a sink full of hot, soapy water.

I will not, however, take over washing the dishes from my husband.

Let the water run!