How to Stop Being Broke: Change Your Money Mindset
How to Stop Being Broke: Change Your Money Mindset
March 14, 2023 Last Updated on March 23, 2023 by Carolyn
How to Stop Being Broke?
Are you tired of living paycheck to paycheck, and having nothing to show for it? You have a good-paying job but still, it’s a financial squeeze to get through the month and make ends meet. You want to stop being broke but don’t know where to start. More than likely. it’s your money mindset that’s keeping you broke. Before you can change your money mindset you need to know what exactly it is.
What is Money Mindset?
Let’s start with what money mindset is not. For many people who hear the phrase “money mindset” an image of a person like Charles Dickens “Ebenezer Scrooge” counting his coins pops into their head, a person obsessed with money. This is not what money mindset is.
Money mindset is your personal relationship with money; how you feel about it, your beliefs about money, and its role in the world.
Believe
Believe..positive thoughts will yield positive outcomes (image by Nini kvaratskhelia of Unsplash)
Your money mindset is somewhat akin to the law of attraction, how you feel and relate to money will dictate whether you have no money, just enough money, or an abundance of money. Being an extreme left-brain type I’d love to say the path to financial success is to simply work hard and spend less, but sadly this is not the truth, money mindset comes into play and it’s amazing how much it controls the outcome.
Different types of Money Mindsets
Scarcity Mindset VS Abundance Mindset
I’m sure you’ve noticed that some people are inherently spenders while others are savers. These spending habits aren’t related to having an abundance of money or lack thereof, they are a reflection of that person’s individual money mindset.
There are basically two basic types of money mindsets: scarcity mindsets and abundance mindsets. These can be further broken down into different sub-types. Do you identify with any of the following scarcity mindsets? Don’t worry, identifying the problem is the first step in your journey to stop being broke.
Scarcity Mindsets
Scarcity mindsets are based on the belief that there are limited resources in the world, and if someone takes more, you’ll get less. This mindset cultivates fear, jealousy, and selfishness.
I Have Enough Mindset
This is the mindset; “I’m comfortable with what I have. I can pay my bills, I have a roof over my head, why do I need more?”
This kind of mindset is dangerous, it’s a mindset of avoidance. You will never have more than enough and the loss of a job, or a sudden emergency expense, can push you over the edge where you don’t have enough.
Money more than likely causes you stress after all you believe, “ money is the root of all evil”.
Money Grows on Trees Mindset
My husband used to justify additional expenses by saying “I’ll just shoe another horse” (he was a horseshoer). The problem is did he really just shoe another horse? No, he didn’t actively go out and look for another horse to shoe. If not reined in, he had a habit of spending every dollar twice.
This is the “money grows on trees” mindset, I can always earn another dollar so it’s OK to spend it today. It can also be considered a debt mindset or a spenders mindset. You try to buy happiness, and instead, end up with debt and stress.
This mindset will most likely get you into a lot of financial trouble.
“Never spend your money before you have it.” –Thomas Jefferson
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