Change your Mindset

Financial Freedom in 2021! Take Action: Day 6

Most of the books I’ve read and podcasts I’ve listened to have taught brilliant and reproducible finance strategies, but more importantly, they’ve taught me even more about mindset. I’ve encountered atomic habit techniques, ways to dream big, encouragement to think a million and to become a millionaire next door, motivation to live frugally, as well as reminders to walk my own path. Every story I’ve read about someone else’s struggles and/or successes has led to more motivation to stay the course toward my own financial freedom.

However, it can be easy to slip back into old habits and a keeping-up-with-the-joneses mindset without regular reminders of why this path is important and possible. Here are a few money truths that I choose to focus on:

  • You only see what people spend, not what they save. Wealth is based on savings, so those who spend the most may not be the ones I should model my habits after.
  • NOT investing is riskier than investing.
  • The things in life that bring the greatest joy are usually free.
  • Comparison is the thief of joy.
  • My family has far more than we could ever need to live a happy, healthy life.

Beyond all of these reminders, I’ve found that the biggest factor in changing my mindset from a spender to a saver, from a hoarder to a giver, and from helpless to capable is daily gratitude. To take action today, write down 10 things you are grateful for and 10 things that bring you joy. Then, reflect on the following questions:

1. What would your perfect day look like?

2. How much money would you need to participate in the 10 things that bring you joy and/or your perfect day?

3. What percentage of clothes in your closet do you wear regularly? What percentage of dishes in your cabinets do you use regularly? Percentage of toys? Tools? Do you really *need* more?

4. Who do you compare yourself to most frequently and why? Are you envious of their spending habits? What intrigues you the most?

5. What activities do you participate in or items do you buy for the primary purpose of posting on social media?

6. What percentage of your income are you giving to charity? Does that contribution match your heart/desire for giving?

7. Think of the last 5 non-essential, non-gift items or services you bought? Did any of them relate to your list of 10 things that bring you joy? Did any of the purchases help you get closer to reaching your personal goals or contribute to your list of priorities from day 2?

8. How much food do you throw away per week? Check out these statistics on food waste and how we can all reduce our impact.

9. Do you have a net worth of at least $100,000 (Assets – Liabilities > $100,000)? If so, did you know that you’re in the wealthiest 10% of the world?!

10. Would any of your relationships change if you lived a life of less… less spending, less waste, less participation in expensive activities, less debt, etc? How and why?

Your answers to these questions might help you determine whether you’re ready to make a mindset shift toward financial freedom. If so, it’s time to get creative with saving! Check out these ideas to motivate yourself to save rather than spend: AMP Up Your Savings!

If you’d like even more resources to help with mindset and strategies, check out what Frugal with Four recommends.