Everything we do today affects tomorrow.
Our attitude, friendships, and actions have consequences that are either negative or positive. The most successful people in the world create businesses for which they are passionate and saw a gap in the market. If you’re an ambitious person who doesn’t want to live an ordinary life, we want to help you develop new habits. Creating a healthy money mindset is important in the early stages of personal development to keep you level-headed, successful, and optimistic.
If They Can Do It, So Can You -- Two Entrepreneurs Who Made Millions In Their Teens
Successful entrepreneurs don’t sit around and wait for things to happen. Even before reaching 20 years old, these two individuals took life into their own hands and made bold moves. Notice how their passion and mindset came much before earning heaps of money. A positive work ethic is the start.
Michael Dunlop set up a website offering advice to entrepreneurs and bloggers. Despite a difficult school experience and living with dyslexia, he found motivation which earned him a six-figure income from his blog.
At 14 years old, Fraser Doherty saw an opportunity to sell his grandmother’s homemade receipe to make jams. He became the youngest person to supply products to a major supermarket which soon globally blew up. Since braving the market to become an entrepreneur, the jam is now available in seven countries at over 2,000 supermarkets around the globe. Fraser’s earned many awards including Global Student Entrepreneur of The Year, Young Entrepreneur of The World and Enterprising Young Brit Award.
What do these two have in common? Well, they started with the work ethic and motivation necessary to succeed as an entrepreneur. Both also saw an opening in the market and took a chance. Combined, these two aspects catapulted Dunlop and Doherty towards success. Their effective money mindsets are something from which we can all learn.
What You Need To Create a Healthy Money Mindset
Managing and earning money can be difficult, but much of success involves looking at yourself and what you’re doing to manifest your future. Before we talk about our tips on creating a healthy business mind, there are some things you’ll need to begin this process. We recommend starting with a few simple apps to assess your finances and see where to make adjustments.
Mint is an all-in-one resource for budgeting and tracking your spending. Simply connect your bank and credit card accounts in one convenient place. The app looks at your spending habits and gives you advice to gain more control over your budget. Seeing your money in one handy place makes it easier to foresee your future rather than after money has left your account.
Wally is another useful app we recommend if you spend ample money on your business and don’t always keep track of it. You can take a photo of your receipts instead of manually entering your numbers to avoid any typing errors and save time. The streamlined app is convenient to log your expenses every week.
To begin the process and see where your current money goes, gather together all of your standing orders, utility bills, financial products, and household bills. It’s important that you know how much money you currently spend to import this information into one of the apps above. Repeat this process for your earnings. Do you correctly know how much money you bring in monthly? Have everything in front of you to see what comes in and leaves your account regularly. Once you have this information, you're ready to develop your money mindset.
How To Manifest a Healthy Money Mindset
Let’s talk about a few ways you can break the cycle of spending and not knowing where it’s going. Or perhaps you’re confused on how to invest your money, or feel a little concerned on your perception of bills. We’ve created these tips to inspire you and keep you on track for a bright and entrepreneurial future.
1. Stop Comparing Yourself To Others
We all have a poor habit of comparing ourselves to others, from careers and popularity, to appearance and of course, money. A money mindset which is instilled by the success of others will bring you down. We can easily see what’s happening in other people’s lives, thanks to social media and TV. People quickly showcase their new designer shoes and sports cars which can leave us envious and feeling worthless.
Though it’s hard to admit, we all come from different backgrounds and lifestyles. By comparing your net profit to others, you aren’t considering many other factors, apart from their bank account. How hard have they worked? How did they get to this point? What sacrifices did they make along the way? Without asking these questions and delving into their work ethic, you will become jealous and negative.
To manifest a healthy money mindset, we recommend creating your own goals. $1 million to you will have a different worth to another person, and that’s completely acceptable. Avoid setting goals which are based off of another person’s success. Just because someone owns a Lamborghini doesn’t mean you have to. Continue being true to who you are, rather than becoming another person in order to succeed. Spend less time around people who talk about material possessions, and reduce scrolling through social media.
2. Create More Investment Opportunities
When someone suddenly receives a large portion of money, their automatic response is to blow it on designer goods and flashy cars. We’re taught that owning such possessions is admirable and people will see how well we’re succeeding. But in actuality, this is equivalent to slowly pouring money down the drain. The items bought decrease in value and you’re not left with anything to show at the end of it.
Investing is different to saving money, as you take a portion of your earnings and try to make it grow by purchasing things you think will increase in value. This doesn’t mean you’re greedy and money mad, but sensible about how you use your income. Investing in stocks, property, or shares are popular options for investing. You see money as a business prospect rather than just to buy things which make you look rich. By investing, you think more about how a dollar can create more opportunities for your future.
For long-term goals, consider investing as inflation can affect the value of your savings. Lower the risk you take when you invest by spreading it across different types of investments which you truly believe in. Set goals and be on the lookout to how you can healthily invest your earnings.
3. Believe in Yourself and Trust Your Talents
Successful business people all have one thing in common – they believed in their talents and trusted their instincts. There are no wealthy people who half-heartedly go through life. They don’t doubt themselves and question their abilities to manifest ideas. To create a healthy money mindset, it’s crucial that you look internally at your perception of yourself in terms of personality and work ethic.
Consider what your true talents are and be confident about what you want in life. You need this level of confidence and drive to push forward to earn more money. There’s no way you could walk into an investment meeting and say, “I think I can do it” and walk away with a positive outcome. Instead of a negative mindset about yourself, start to value your worth. Celebrate your triumphs and qualities, and don’t let anything positive go out the window.
In order to switch on this confidence, work harder to create a new level of experience and skill. Be wary of negative self-talk, as negative actions will follow from that. Believe in yourself and create plans which will help you grow as a person. This involves spending time and grafting on things you enjoy. Anything that doesn’t resonate in your heart isn’t worth it, because you’ll never fully give it your all.
4. Create Short and Long-Term Plans
Spreadsheets are an excellent method to track your income and outgoings. Become engaged in financial tasks and know where exactly your money goes. Budgeting isn’t just for people with limited money, as it’s a proactive process to plan your expenditures. You should know when standing orders leave your account, in order to create productive plans for your money. If you don’t know your money inside and out, you risk spending it in an unhealthy manner and creating problems for yourself.
You don’t need to check your bank account 10 times a day, but build a relationship with your money so that you know what to expect when you check your balance. How much can you spend in a restaurant which won’t affect investments? Though you might have $100,000, is it wise to spend $10,000 on jewelry? How will your spending affect your future and potential business opportunities? This might seem like an obsessive money mindset, but it isn’t.
Know where you want your money to go. What are your short and long-term plans? If you can’t answer that question, spend some time thinking about investments. The best investment you can make is in yourself. Spending money on your business rather than personal items will only benefit you more in the future. Though it’s tempting to spend on other things, put your goals and ambitions first.
5. Develop Healthy Money Habits
We’re all prone to bad money habits, such as spending it on products we never actually end up using. Small steps to positive affirmations and new beliefs will serve you in a new light. If you’ve come into a large sum of money, think about how that can improve your life in a way that doesn’t just show everyone you’re earning good money. Pay off your credit cards and anyone you owe money to. It’s critical to develop a healthy money mindset early on in order to create habits which will only benefit you in the long run.
Automate your finances so you never forget a payment. This includes standing orders, investment opportunities, and savings accounts. Always be aware of what is coming out of your bank, and the amount, but manually processing them is a dangerous game.
Many people just don’t know what they want out of themselves and their money. Wealthy people are confident and comfortable in their future, so they develop plans which coincide with these goals. Where do you see your future in five years’ time? Rather than plodding through life hoping that things work out, creating a productive plan. Set realistic goals, but don’t be afraid to challenge yourself. How much annual income do you want to achieve next year? Make a plan and then make it happen.
6. Work Harder at Everything You Do
Set your alarm clock earlier to add more hours to the day so you can work harder. People who earn their money through legitimate hard work and sacrifice manifest a healthy money mindset, because they’ve earnt the rewards themselves. Those who are gifted wealth and a career typically think the opposite. Richard Branson and Jack Dorsey start their working days at 5am before other people are awake, and they’re not the only entrepreneurs with this habit.
We can’t guarantee that people are rich because they’re early morning risers, but forcing yourself to get up and work when you don’t feel like it, says a lot about you. It’s this level of drive and motivation which will help you to succeed. Stop being lazy and make things happen. You won’t suddenly receive money if you haven’t worked for it, so ensure that you’re always working hard and dedicated to your career.
Surround yourself with like-minded people who strive for success. Read more business books to motivate yourself, and never settle for what is now. Keep pushing yourself and setting goals because nothing comes from laziness. Do things that challenge you and you don’t always want to do in order to build your business.
Why Is It Important To Address a Money Mindset?
Before you can work towards something and make it come true, you need to define what your goals and motivations are. There needs to be clear ‘whys’ and ‘hows’ at the very beginning to make things happen. Have you ever wondered how marathoners accomplish impressive times? Or, how entrepreneurs keep going during grueling times? The answer is motivation to both. There has to be motivation and reasons for everything we do.
Find yours and share what gives you a healthy money mindset in the comments to keep this conversation going.
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