What exactly is a money mindset? Simply put, itās the way you think about money. Anything cash related counts: how you earn money, how you save money, how you spend money.
Long-term journalers wonāt be surprised to hear that this mindset often comes from our culture and childhood. Every family views money differently. In fact, you might be floored to hear what your best friend thinks about money.
That said, thereās probably things you really respect about your own money mindset. This post isnāt to tell you one way is best. Itās about empowering you to be intentional about the ways you use money.
Sometimes, You Really Arenāt the Problem
The thing that a lot of financial planning or budgeting advice skips over is that the system isnāt fair. No amount of 20/30/50 or snowballing is going to change the fact that inflation is crazy and many people donāt make a living wage.
Before digging in to your money mindset, you need to give yourself a little grace. Are you really in a place to play around with the ways you spend money? If you donāt always have enough to eat or find out your rent is rising $800 overnight ā your money mindset likely isnāt the issue.
People are inherent problem solvers. If poverty really was as simple as ātrying harderā, youād have done that by now. At the very least, youād know why youāre in this situation.
This post is for people who donāt understand why. Why is it so hard for you to spend money, even when it is safe and important to do so? Why do you splurge on retail therapy? These tools help put you better understand whatās going on. You might find an easy fix or you might find something to bring up with a therapist. Either way, a win is a win.
Two Sides of the Same Coin (Pun Intended)
There are two types of people in this world. Over spenders. Penny pinchers. But honestly? They have a lot in common.
Both groups use money to control their emotions. Over spenders buy things to feel excitement and relief. Penny pinchers hold back from spending to feel secure. But money on its own canāt guarantee these things.
Marie Kondo taught us that some purchases just donāt spark joy. Scrooge taught us that sometimes you need to just buy the Christmas goose. Whatever your money mindset extreme, itās all just two sides of the same coin.
Your journalās goal is point out how you use money to manage your emotions. From there, youāll notice you have more options when it comes to your money mindset.
3 Journaling Tools for Your Money Mindset
The Money Mindset Venn Diagram
People learn their money mindsets from three main places: their parents, their culture, and their own personal values. This exercise letās you piece apartĀ where each though comes from. Pro hack: you can use this for any topic, not just money.
Make a Venn Diagram with three circles. Label the circles āmy familyā, āmy cultureā, and āmeā. Go through each of your thoughts and habits around money. Ask yourself where you learned this idea. Donāt just focus on the things you donāt like. You should honor the things you love about your money habits.
And Then Whatā¦
So, you want to win the lotteryā¦and then what? Money should never be the end goal. At the end of the day, money is just a tool for getting what we truly want.
Crazy enough, money is so hyped up that sometimes itās hard to remember what your wants actually are. When that happens, try this.
Start by writing down a recent money goal youāve had. Something like āI want a job that earns X amount of moneyā or āI want to pay off all of my debtā. These goals are great. Nothing wrong with wanting a little extra cash. The key, though, is knowing why that money matters.
After you list your goal, ask yourself āand then what?ā For example, youāve paid off the debtā¦and then what? How will paying off your debt change your life? Once you know that, keep asking āthen whatā until you feel youāve reached a core need.
Hereās what that prompt could look like:
āI want to earn 6 figures a yearā
āAnd then whatā
āThen I could save more money every monthā
āAnd then whatā
āWell, then I could finally afford a vacationā
āAnd then what?ā
āThen I could get to explore! I miss trying new thingsā
Ding. Ding. Ding.
Joyful Spending Tracker
Youāve probably heard of a no-spend day habit tracker. Itās where you mark down every day you donāt spend any money apart from essentials like rent, groceries, or utilities. No-spend trackers can be a really useful tool! However, they arenāt so helpful when it comes to identifying your money mindset.
One great alternative is a joyful spending tracker. Instead of tracking the days you donāt spend money, rate how the dayās spending made you feel. Think of it as a cross between a spending tracker and a mood tracker. Once the week is over, go over everything you bought that week again. How do you feel a few days after spending the money?
This tool is great for uncovering patterns. You might find that you get a lot of joy from buying little trinkets off TikTok shop in the moment but canāt even remember whatās coming in the mail 4 days later. Maybe you find that your most meaningful spending happens when you go out to dinner with friends.
Joyful spending trackers remind you that money is only good if you can use it in ways that matter. Itās up to you to discover what that might be.
