Money Mindset - are you in control? 5 tips for changing your money mindset

Money Mindset - are you in control?
5 tips for changing your money mindset by Julie Lord


At the root of all money problems are usually mindset problems. The greatest financial obstacle we face is our lack of awareness of the mind/body/spirit connection to our money, something almost none of us has ever really been taught.

Our relationship with our money is complex and is often rooted in our very early lives. For example, if you were brought up in a home where nothing was wasted and you had to clear your plate at every meal, you may have carried these attitudes into adult life and be very careful with your money. Alternatively, you may have felt unhappily constrained by these attitudes and have now become a reckless spendthrift.

One of my very early experiences was having to hide behind the sofa from the rent man. I never want to have to do this again, so I make sure I have enough money in emergency funds, just in case. Can you see how this early financial experience has affected my mindset about my money and financial wellbeing?

Your money mindset is really the combination of feelings and thoughts you subconsciously develop towards money from your life experiences. It doesn’t help that we’ve grown up to believe that talking about our money is taboo. That we shouldn’t talk about our finances because it’s a private issue. But often sharing our money stories can help us to get a better handle on what we want to use our money for in the future.

In order to take control of our finances, we have to have the right mindset and not feel frightened of making the wrong choices. Getting a better grip of our money situation will definitely make us feel less stressed and happier.

So here are 5 tips for changing your money mindset:


#Tip 1:     Don’t think of money as being evil.

There is no doubt that bad things happen around money - corruption, stealing, bribery etc, but this is much more to do with human behaviour than it is with money. Greed is the problem - greed is evil, money itself is not.

Look at all the good things that money can do - charities help millions each year
providing shelter, healthcare, teaching etc and we can all do good things with our money too.


#Tip 2:  Money is not who we are.

Sometimes we fall into the trap of thinking that our success is measured by the amount of money we have. We tie our self worth to how much money we have or how much money others think we have.

We can waste so much money buying fancy clothes and cars and bling to impress others because it makes us feel better - like this will show that we are successful.  But the most successful people don’t actually care what others think and they don’t measure their self-worth in terms of money but more In terms of their purpose in life and what they can give back. A great example of this is Bill Gates.

Some of the wealthiest and happiest people I know drive battered cars and shop at the Red Cross!


#Tip3:   Money is just a facilitator.

Money is simply a tool to help us reach our life goals. We shouldn’t ever make money just to have money. We shouldn’t waste our lives working long hours, earning money to buy a bigger car, bigger home and more stuff that we don’t really need or care about.

Money is just a means to an end - there to provide the necessities of life and to help us to do what we really want to do. It really helps to work backwards. Planning out what we want from life and thinking about how much money is required to facilitate it. That’s what will truly make us happy.

We shouldn’t be scrimping and saving either - having a lot of money when we die is a horrible waste. We should use it to enjoy life and not leave it all to the tax man at the end! Spending precious time with family, travelling - money is only there to provide necessities and to facilitate what we truly love to do.

A good financial plan is worth everything if it allows us to live our best possible lives.


#Tip 4:   Take control of your money.

Sometimes we don’t feel confident in doing this alone - so take advice. There are plenty of great advisers who can help - ask friends for recommendations or call us. We can’t be in control of our money, if we don’t track it and know where it is coming from and going to.

Basic financial tools like a budget and money organiser will help us track our money and be more aware of our financial situation. They also help us to set out a plan and to work towards it.

If we aren’t properly aware of our money, we may be spending more than we can afford leading to debt and financial stress.

Some people appear to afford more and enjoy a better standard of living - more holidays, treating family and friends, donating to charity, better healthcare etc. But don’t make assumptions about other people, comparing what’s going on inside you (what you are thinking), with what you see on their outsides! They may be in debt and it may all be for show.


#Tip 5:   Enjoy your money!

We should all live the best life we can think of. This means thinking ahead to the life we would like to lead and making money plans that will take us towards that life. This means making and saving money for our life goals and to enable us to live a secure and happy life.

Planning is key here. If we can organise our finances so that we have all essential costs covered; an emergency fund; a savings pot for fun and a longer-term investment pot for future security then we really can enjoy our money and have a great life.


If this article affects you or anyone you know, please feel free to contact Magenta on the number below for a friendly chat or visit their website at


Julie Lord is CEO of Magenta Financial Planning. Julie is passionate about helping people to determine their life goals and then helping them to organise their finances most efficiently in order to achieve them. She believes in simple explanations of complex issues and long term client relationships.

Tel: 01656 760670

Magenta Financial Planning is Authorised and Regulated by the Financial Conduct Authority.