How To Develop A Rich Mindset

Have you ever caught yourself saying “money doesn’t grow on trees”? Most people don’t realize that their mindset around money could be holding them back from living a financially secure life. Changing your mindset is the step in the right direction to stop living paycheck to paycheck, and taking control of your finances. A lot of people have a scarcity mindset about finances, but if you flip the script and start developing an abundance or rich mindset, things will change!

What Is A Scarcity Mindset?

One of the ways that we grow a scarcity mindset is by pinching pennies. I know this seems like radical advice from a personal finance blogger, but hear me out. Do you remember a few years ago when extreme couponing became a thing? I was obsessed. So were many other people. I would go to multiple stores just to save 50 cents on an item. Is my time better spent on something else? Oh hell yes!

One of the ways we get in a scarcity mindset is by thinking that we need to save every penny we can because that’s all the money we’re ever going to be given. We think that we’ll never make enough money so we need to scrimp and save. This is good advice when you’re getting out of debt IF you’re putting that money you’ve saved on debt repayment. Just make sure you aren’t spending $1 in gas just to save 50 cents 😉

Our scarcity mindset tells us things like “I’ll never be able to afford that” or “I’ll never make as much money as that person does”. When in reality those are blocks we are putting on ourselves. You may not be able to afford something right now, but that doesn’t mean you won’t be able to in the future.

People stay in a “poor” mindset by focusing too much on saving small amounts instead of investing and growing their income.

What Is An Abundance or Rich Mindset?

People who have an rich mindset around money aren’t worried about the pennies, they worry about the dollars and let the pennies sort themselves out. They don’t think that money is a limited resource; they know they can make more. Don’t think that I’m saying you should go out and spend all your money because you can make more. The idea is that you know that money does grow on trees, if you nurture and grow the tree ;).

Actively managing your money will help you have an abundance mindset. You won’t wonder where your money is going, you’ll know how much is coming in and going out. Money needs direction or you will be left wondering where it went!

You’ll notice that rich people don’t get rich by using 50 cent off coupons. They get rich by making money, investing and managing their finances.

Need help budgeting? I got you!

How Can I Train My Brain To Have A Rich Mindset?

Changing your mindset on anything takes time. I’m still working on my money mindset! You need to change your internal dialogue, much easier said than done!

If you’ve never heard of Gary Vaynerchuk, you should check him out! He’s an amazing entrepreneur. He made a big audacious life goal of buying the New York Jets. Something that seems so outside the realm of possibility, since in childhood his parents couldn’t even afford to buy him a jersey, but he always held on to that goal. Of course your big goal might be an expensive vacation, or a luxury car. But during every money decision, ask yourself if it will get you closer to your big goal.

I have a dream of being able to take a “gap year”. Where my husband and I take a year off working to travel. Will it ever happen? Maybe? Our life goals might change. But you need something to aspire towards!

P.S. please check out this 1 minute Gary Vaynerchuk video. It’s super inspiring!