Starting your journey toward financial well-being often begins with understanding how you think and feel about money. No matter where you are in life, this self-reflection can help you build a better and healthier relationship with your finances.
Life’s challenges can sometimes cause us to have a negative outlook on money. But it’s important to remember that how we think about money has a big impact on our financial health and overall happiness. The first step toward change is recognizing any past mistakes. Letting go of guilt or regret can help you move forward and make better choices that support your goals and dreams.
What Is a Money Mindset?
Your money mindset is the way you think about money. It affects how you spend, save, and handle debt. It is shaped by your beliefs and feelings about money.
This includes:
- What you believe is possible for you financially
- How much money you think you deserve
- How you think money should be managed (spending, saving, giving)
- How you handle debt
- Whether you believe you can grow your wealth
- How confident you feel about managing your money
Do You Have a Positive or Negative Money Mindset?
Answer the questions below with “True” or “False” to get a better idea of your money mindset:
- I feel nervous or scared when I think about my finances.
- I don’t feel in control of my money.
- I feel hopeless about my financial future.
- I compare my financial situation to others and feel bad about it.
- I don’t think I’ll ever understand how to manage my money.
- I often delay making money-related decisions.
- I don’t know how to grow my wealth and don’t believe I can.
- I believe I only deserve what I currently have.
- I don’t think I will reach my financial goals or get out of debt.
- I feel like money will always be a problem for me.
If most of your answers were “False,” you likely have a healthy money mindset. If most were “True,” don’t worry—there’s room to grow, and this guide is here to help.
Scarcity Mindset vs. Abundance Mindset
A negative money mindset is often connected to a “scarcity mindset.” This means you believe there is never enough money or opportunity.
Signs of a scarcity mindset:
- Living paycheque to paycheque
- Feeling overwhelmed or down about money
- Feeling bad about past financial choices
- Feeling jealous of others’ financial success
- Feeling stuck in your current situation
- Believing there’s not enough money, jobs, or opportunities out there
- Only focusing on short-term needs because you can’t see a better future
If any of these sound familiar, it may be time to work on shifting your mindset to one of abundance—a mindset that sees possibilities and growth.
How to Improve Your Money Mindset in Five Steps
Step 1: Look at How You’ve Viewed Money in the Past
Before you can change your money habits, take a moment to think about your past. Ask yourself:
- How did the people who raised you talk about or handle money?
- Were they spenders or savers?
- Did they struggle with money or seem financially secure?
- What kind of messages did you receive about money as a child?
- How did these experiences shape the way you think about money as an adult?
This step is about understanding—not blaming. Your past influenced your views, but you are now responsible for shaping your future.
Step 2: Think More Positively About Money
The way you speak to yourself about money matters. Start using kind, helpful thoughts when:
- You receive money (from a job, gift, bonus, etc.)
- You use money for daily needs like bills and groceries
- You spend money on something special for yourself
- You make a mistake with money
- You talk with others about money
If you notice negative self-talk, replace it with something more supportive. Here are a few examples:
- “I’ll never get that promotion.” → “I’ll do my best and keep trying. I know I bring value.”
- “I’ll always struggle with money.” → “I can adjust my budget and find a way to feel more secure.”
- “I’m bad with money.” → “I’ve made mistakes, but I’m learning and improving.”
- “Everyone else is doing better than me.” → “We’re all on our own journey. I’m making progress at my own pace.”
Step 3: Set Clear Financial Goals
Figure out what really matters to you. What do you want your financial life to look like in 1, 5, 10, or even 20 years? Write down your values and goals.
Once you have your goals, break them down into steps. How will you reach them? What actions can you take to move forward? The more clear and detailed your goals are, the more realistic they will feel.
Step 4: Keep Track of Your Spending
The best way to understand your money habits is to track your spending for at least one month. Notice not just where your money goes, but how you feel about it.
Ask yourself:
- How do I feel when I get paid?
- How do I feel when I pay bills?
- How do I feel when I buy something for myself or someone else?
- What causes me to spend without thinking?
Keeping a journal or using a money diary can help you recognize patterns and emotions tied to your money habits.
Step 5: Make a Commitment to Change
Now that you’re ready to shift your mindset, it’s time to take action. Read stories from people who have turned their finances around, like someone who paid off thousands in debt by changing how they think about money.
Use books, blogs, podcasts, videos, or courses to learn more about money. Use what you learn to create a budget that matches your new mindset and goals.
Remember: you have the power to take control of your money. Trust yourself, stay thankful for where you are, and keep moving forward. You’ve got this—and we believe in you.