Your money mindset shapes the way you spend, save and build wealth. A healthy money mindset means you’re as confident saying no to spending money as you are saying yes. It reflects your attitudes, beliefs and feelings about money. Understanding how to change your money mindset can be the key to a healthier financial future.
Why your money mindset matters
Rooted in psychology, you can deep dive into an plenty of podcasts, books and articles by financial coaches and experts about how a change your money mindset has the potential to shape your career, confidence and long-term success.
How you think about money, debt, spending and saving all has an impact on your wealth. It’s also about getting comfortable around money. Did you talk about money growing up? Do you talk about your finances now, and how do you feel about money when it’s part of the conversation? Understanding how to get motivated to save money often begins with uncovering the answers to these.
What is a healthy money mindset?
Finding a balanced attitude toward money can help you feel in control of your finances, feel confident around spending and saving and separate financial success from self-worth. It can also relieve anxiety and guilt surrounding our financial habits.
Ways to recognise a healthy money mindset
These beliefs work together to build a solid and balanced view of the importance of money. Developing them is part of learning how to change your money mindset to save money and support a balanced view of money for long-term financial health.
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Freedom with boundaries
I have freedom to spend when I see the value but can also say no to spending when I do not.
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Guilt free generosity
I enjoy giving generously to support those who need it without feeling guilty about what I keep for myself
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Confidence not comparison
I don’t need to compare my financial situation to others, it’s my journey, and it’s unique.
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Money helps you; it doesn’t complete you
Money can help me achieve goals, but it does not measure my self-worth.
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Savings and security
I am saving to invest in my future and allow myself to enjoy my life now.
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Goal focused
I don't make knee jerk reactions but try to focus on my long-term financial goals.
Ways to recognise a negative money mindset
These thoughts can manifest in bad financial planning. Recognising these signs can be a step towards reframing and understanding how to get motivated to save money.
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Scared to spend
I need to save all my money as I will never have enough.
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Lack of control
I have earned this money, so I deserve to spend it on what I want. Budgeting is too restrictive.
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Comparing to others
Everyone else has more than me. I’ll never be as successful as them.
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Money is the same as self-worth
If I had more money, I would be happier and more respected.
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Guilt when spending
I feel guilty when I spend money – even when it’s on the things I need.
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Avoiding financial control
I’m useless at managing money, so it’s easier to ignore it.
How to change your money mindset
Wealth is as much about mindset as it is about numbers. By challenging negative beliefs, you can develop a healthier relationship with money. Here’s some ways to change a negative thought to a healthier response:
“That’s too expensive” to “do I really need it? Is it worth saving up for?”
“I deserve to buy whatever I want” to “budgeting can give me the freedom to spend on what matters while still keeping control of my finances.”
“Everyone else is doing better than me” to my financial journey is my own and unique, I focus on my progress not others.”
“If I had more money, I’d be more successful” to “my work comes from who I am, not my bank balance. Money is a tool, not a measure of worth.”
How to get motivated to save money
If you aren’t used to saving, you may see it as daunting or even impossible at times. It can help to approach saving with a different perspective. Saving isn’t about financial sacrifice, it is about future opportunity, meeting life goals, financial security and possibly even financial freedom.
Here’s some top tips to change your mindset to save money and start you off on your savings journey:
1. Don’t compare your progress to others
Everyone is at different stages of life and has their own unique financial journey. Social media can make it a lot easier to fall into the trap of assuming the lifestyle others are leading are more successful than yours. Remember, appearances rarely tell the full story and even those who ‘have it all’ may have their own financial stress.
Always focus on your own progress and milestone and congratulate yourself when you hit them. Your savings journey is yours; it should never be about matching someone else’s lifestyle.
2. Be aware of your spending habits
You can’t change what you don’t understand, right? Being aware of everyday small, possibly even unconscious purchases, like takeaway coffees, Amazon deliveries and monthly subscription is important, they can easily erode your bank balance leaving you to consider where your money went. Make intentional choices when you spend, such as:
- Tracking spending for a month or reviewing bank statement to find patterns of spending
- Make a list of your ‘wants’ and your ‘needs’ (essential and non-essential spending)
- Allow yourself to spend on ‘wants’ which add value but within limits
Here are some easy budgeting options to work with your lifestyle.
3. Set achievable saving goals
Set realistic and meaningful savings goals to keep you motivated. It will remind you why you’re setting aside money now if you can envision your future self-benefiting. If it’s a big goal, such as saving £3,000 towards travelling, break it down into smaller chunks, such as saving £150 per month for the first 12 months. Before you make the decision on how much you want to save, work out how much you can comfortably save each month and keep track of your progress so you can adjust as you go. Watching your savings grow, no matter how small, is a great way to stay motivated!
4. Celebrate your milestones
Every time you hit a milestone, recognise and celebrate it. It will help remind you saving isn’t about sacrifice, it’s your money still, it’s just being put towards something you see as a priority. Treat yourself to something small, like a nice dinner or a day out, as a reward for your progress. Celebrating these moments keeps saving fun and reminds you why it’s worth the effort.
Here are our top tips for saving and easy ways to save.
Saving with Hodge
Changing your money mindset isn’t about making drastic changes overnight. Consistent and conscious decisions and actions will build up a positive transformation, and before you realise, saving will move from feeling like a chore into a rewarding habit.
If you’re ready to make healthier financial choices and build balanced money mindset, explore our personal savings accounts and work towards the future you deserve.
This article is correct at time of publishing and for general information purposes only. We recommend you speak to a professional financial adviser for advice. You can find a financial adviser and further personal finance information at unbiased.co.uk.
