4 Money Mindset Shifts to Become Financially Savvy
Are you worried that you aren’t making the right financial decisions to reach your goals? Do you wish you could be honest with someone about your finances, so you could actually get on the right track?
Here’s a secret: it’s easier than you think. Other people have taken control of their finances, so why can’t you? There’s nothing wrong with you and you aren’t sentenced feeling like this forever!
You just need to take a moment to reflect on your money mindset. What if you’ve been believing the wrong things all along? What if your mind has been stuck believing a lie?
It’s time to get your money mindset right! To help you become financially savvy, here’s four mindset shifts you need to make today.
Mindset Shift #1
Managing money can be as simple, or as difficult as you want it to be.
Ok, I know you don’t believe me right now, but trust me! Managing money can be simple. It can also be difficult, if you want it to be.
Think about it. You’ve seen financial magazines and articles talking about high-level strategies, new innovations, and yadda-yadda. You might get overwhelmed with all of that information thinking, “what in the world are they talking about?”
I want you to tune them out for the moment. Let’s get back to the basics. What really is money?
Money is a medium of exchange.
Money from an elementary standpoint is concerned with ONE thing: cash flow.
Cash Flow: Cash In vs Cash Out
“Cash In” means you have money coming in through your income and return from investments.
“Cash Out” is any money you are spending in expenses or investing into assets.
Now, these are the only two things you need to be concerned about at the moment.
You don’t need to worry yourself with any complicated information about money, like crypto currency or non-fungible tokens (NFT). But, it’s good to be aware of how:
Money makes the world go round
Trading proofs in the economy
Money is printed
Inflation affects economies
Although, this doesn’t change your simple money strategy to become more financially savvy. Even though money is getting more complicated by the day, the basics remain the same.
When it comes to money, you have a choice: do you want to learn everything about money the hard way, or the easy way?
Would you prefer to take a dip in the lighter end and just understand the information you need in relation to your current situation? If so, then just focus on gathering the information you need right now. Take it one step at a time!
Mindset Shift #2
There’s more than one way to manage money. Everyone has different goals.
What works for some people, may not work for others. Everyone has different goals and different strategies of getting there. There are many examples that prove this is true.
When you decide on a goal and pick a strategy, you will get an end result (if you stick to the plan). For every action, there is an equal and opposite reaction.
For example, if someone decides to save money early on, then they will end up with a bigger savings account than someone who didn’t decide to save.
If someone decides to invest earlier than another, then they will own assets before someone who did not decide to invest.