The open secret to mastering your money

Women with CentsBlog, Budgeting, Debt, Money Mindset

Have you ever wondered why even in a wealthy country like Australia, most people still struggle to achieve financial freedom?

Why it seems to be that no matter how much we earn, it still feels almost impossible to save?

Why no matter how many times we write out a budget, it often feels like a case of one step forward two steps back?

I am going to let you in on a little secret: it is not because we lack the knowledge or don’t earn enough!

In fact, scientists have discovered that in order to create wealth, we need more than just a high Money IQ. We need to also develop our Money EQ and understand what is influencing our financial decisions on a daily basis.

This is because only 5% of what we do day to day is made up of logical thought, meaning that the majority of our day to day actions are driven by our subconscious mind. That is to say that our instincts, habits, emotions, beliefs, and fears all play a greater role in our financial decisions than logical thought and knowing what we should do with our money.

The good news is that our mind is an incredibly powerful machine and has the ability to be reprogrammed. So even if you have struggled to create wealth in the past you can still develop healthier money habits and change course! Here’s how.

Step 1. Create conscious awareness

First you need to identify the behaviors that are in direct conflict with the result you are trying to achieve, so that you can take conscious effort to correct course.

Start by taking a moment to reflect on your relationship with money and identify what thoughts and beliefs you hold. For example, do you feel overwhelmed making financial decisions? Do you worry a lot about paying the bills? Perhaps you feel a great deal of guilt or shame about your situation.

A good exercise can be to keep a journal for a week and record any emotions and thoughts that you experience in relation to money. Review the entries at the end of the week and see if you can spot any recurring patterns.

Step 2. Trace Your Influencers

What you think and feel about money has developed over time as a result of your upbringing. Meaning that you weren’t born with your money beliefs. You learned them, copied them, and responded to them as a result of what you saw your parents, grandparents, and other adults around you doing.

So take a moment to reflect on how your parents were with money when you were growing up and which of these patterns of behavior you share with them. Were they often stressed or anxious? Were they secretive? Frugal? Overly generous? Strict?

Also consider the language that you use. Do you say things like ‘we can’t afford it’ or ‘money doesn’t grow on trees’? Consider, who did you learn these from?

Step 3. Let go of what doesn’t serve you

Money in its current form is unlike anything previous generations have ever seen. We can access money and earn money in ways that our grandmothers never could have imagined. Which means that a lot of what we were taught about survival and how to acquire money is outdated. Consider, does the expression ‘money doesn’t grow on trees’ really apply in a society where we can work multiple jobs and invest and grow our money? I would argue that it doesn’t.

So write down the limiting beliefs and stories you tell yourself every day that aren’t serving you. Then rip them up and throw them in the bin! Now write down some positive affirmations that you will commit to repeating in their place.

Step 4. Develop a Can-Do Mindset

Changing your relationship with money and building wealth requires you to believe that it is within your power to do so. To believe otherwise becomes a self-fulfilling prophecy purely because if you believe it can’t be done, you won’t even try.

So if you ever catch yourself saying, “But I have no other choice, I’m stuck where I am. This is how it is. I’ve done everything possible. This is just my life. I can’t,” recognise that this is the voice of your inner victim. The Victim is a very powerless money archetype because it tells you that you are not in control of your circumstances, which is absolutely untrue.

A simple starting point to shifting away from the victim mindset is to shift your language. Replace “I can’t” with “I choose not to” and start to notice how differently you feel! Next, try to focus your mind on being solution focused rather than dwelling on the obstacles. Ask yourself – if I knew I would succeed – what steps would I take (no matter how hard!) to achieve my goal?

As the saying goes – nothing changes, if nothing changes. So if you have been struggling with mastering your money in the past, it is only by identifying what money habits need to change that you will begin to achieve a different result!

If you would like to learn more about your money archetype and how you can improve your relationship with money, complete this quick Money Type Quiz and book in a complimentary phone consultation.

At Women with Cents we believe in paying it forward and supporting those in need. If you enjoyed these tips, please consider helping us to support young girls in Africa by making a donation.

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Have a money question you’d like answered? Need a helping hand making a decision? Or perhaps you’d like some general support with making your money work better for you. Why not drop me a line! Click below to get in touch or book a discovery call here.

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The information provided by Women with Cents is general in nature. It doesn’t take into account your objectives, personal financial situation or needs. Think of it as educational material in which to help you make more-informed decisions. We recommend you obtain financial, tax and credit advice specific to your situation before making any investments or financial decisions.

Sova Financial Pty Ltd Trading as Women with Cents. ABN 71 163 435 836 | Sova Financial is an authorised Credit Representative Number 443432 of Finsure Finance & Insurance Pty Ltd, ACL 384704, ABN 72 068 153 926| Sova Financial is a corporate authorised representative no 468977 of Shartru Wealth Management, AFSL 422409, ABN 46 158 536 871