Have you been struggling to meet your personal finance goals? It’s understandable considering the current situation caused by the coronavirus and subsequent lockdown in South Africa. Times have been tough for many, and while you’ve probably had to readjust your financial goals for the next few months, we’re here to help you make sure that you still achieve them.
You’ll find loads of resources online talking about how to save money, but without the right money mindset, saving money and increasing your wealth will be really difficult to accomplish. So, whether it’s to clear all outstanding debt, save for a specific goal, investing or reaching a certain sales target in your business, you need to have the right mindset from the beginning.
How to improve your money mindset to achieve your financial goals
The most important part of being able to achieve your goals requires having the right mindset. This, however, isn’t as simple as it sounds. You need to adjust the way you think, how you act and work on your discipline. You also need to get uncomfortable.
Your money mindset is something that you will have to continuously work on. Here are a few tips to help you improve your money mindset.
1. Decide to be financially successful
Reaching your financial goals starts with deciding to be successful. A simple decision, but a profound one. You need to decide that you are going to be wealthy, which then makes you decide to commit to the journey and trust the process.
With this decision, you are telling yourself that you can do it. It’s the first big boost to your mindset. Telling yourself that it’s possible and that it’s a reachable goal. It’s changing your story from ‘making/saving money is hard’ to ‘I have what it takes’. Unless you believe you CAN be wealthy, you probably won't be motivated to do what it takes to actually build wealth.
It helps to also know your why. Ask yourself, why do you want to pay off your debt, save money, becoming financially successful, financially independent, etc? Why do you have these goals? Your why drives a deep sense of purpose and helps you develop the motivation you need.
2. Make your own standards and focus on that
What does being wealthy mean to you? For some, it may mean a six-figure number in their bank account while for others it may simply mean being able to afford a holiday to the beach once a year. Or perhaps you just want to make sure that you can retire comfortably at 65. We all have different goals, and different standards that we strive towards.
While working on your financial goals, you need to focus on what works for you. Don’t get caught up in the standards that are defined by the world. And avoid comparing yourself to others.
Whatever your goals might be, focus on your own standards and what money means to you in relation to what you want in your life.
3. Open your mind to infinite possibilities
When it comes to improving your money mindset, your logical mind can be your worst enemy. Yes, there are times when you need to be logical with your finances. But there are also times when you need to open your mind up to the wide array of possibilities and opportunities.
You need to stop limiting your beliefs to things that you already know. If you have assumptions that you can only earn money in certain ways, like your salary from your day job, then you’re stopping yourself from looking for other opportunities.
Other ways to increase your wealth could be winning an all-expenses-paid trip, selling some old furniture, finding things you wanted to buy anyway on discount or finding money in an old coat.
While you may not think of these as making more money, they are still bringing more wealth into your life. Allowing more abundance to flow into your path.
4. Become a super negotiator
While you may cringe at the thought of haggling at your local market or asking for a special discount at your hairdresser, it’s important to master the art of negotiating. From bank fees to gym memberships and insurance, you’d be amazed at the things in life that are negotiable.
And when you commit to negotiating your way through every transaction you make; you’ll be surprised how much money you start to save.
To do this, you need to be informed about the product or service you’re buying. Also, leave any emotions at the door and always be prepared to walk away. In times when you know you are being ripped off, you need to be strong enough to walk away and leave the deal.
5. Take insurance seriously
When it comes to money, insurance is probably the thing that people know least about. But it’s actually one of the most important aspects of your finances. Achieving financial goals is not only about saving for the future, but also making sure that you are protected financially.
Insurance stands between you and financial ruin if something bad happens. Having insurance on your most important assets will save the day should the unexpected happen. Whether it’s your car getting stolen, your house burning down, your geyser bursting and damaging your carpets or your office getting broken into. You need to make sure that you have the right Vehicle Insurance, Building Insurance, Home Contents Insurance, and Business Insurance to protect you, along with any additional insurance cover that your lifestyle may require.
Having the right mindset to start achieving your financial goals requires constant focus and nurturing. It’s not something that you can do once and forget about it. It’s changing your whole way of thinking, and continuously striving to achieve your goals.
Always start with setting the right intentions and keeping your goals top of mind. Get comfortable with being uncomfortable. And remember that adjusting your goals is also okay. Lastly, remember to be grateful and celebrate your achievements. This allows you to focus on something positive, which is also a great mindset for success.