If you worry a lot about making and spending money you may be operating in a scarcity mindset. A way of thinking that focuses on your lack of money and makes you feel like you never have enough.

But in actuality you may have plenty of money for your needs. You just need to adjust your thinking towards an abundance mindset.

This way of thinking has no fear about making and spending money because it’s confident about always having enough money to meet its needs and goals.

The relationship we have with money is complex, and why it’s difficult sometimes to change our deep seated attitudes. But with a little awareness, soul searching and practical advice you can make a money mindset shift.

Have a budget and a financial plan

Money is a tool, not only for surviving day-to-day, but to help you reach your goals and aspirations in the future. By being in control of your money, with a budget, and a financial plan, you can start to shift your financial situation.

Budgeting is the foundation of a money mindshift. It puts you in control of your finances. By keeping track of your income and expenses, you can start to see patterns emerging. Rather than seeing a lack of money, you will become more aware of unnecessary spending and areas where you can cut back and make provisions for saving.

The ability to save money is the cornerstone of a money mindshift. It allows you to be super specific about what you desire. Rather than just vaguely wanting more money, you can start really thinking about what you want to use it for, now and in the future.

Our article Why Your Attitude to Money Is Holding You Back has a section on setting financial goals and examples of each.

Take action to change your situation

Sitting around feeling depressed because of your money situation isn’t going to help change it. With a money mindset shift you need to train your mind to solve financial problems that come your way.

Short on money for a utility bill? Come up with a plan to put into action when it happens so you can feel confident about paying your bills in the future. An example could be to start an emergency fund and put $5 a week into it.

Problem solving when it comes to money builds resilience and helps you think about more than one course of action. This way you can make a good decision, rather than feeling trapped and putting your head in the sand or turning to emotional spending to make yourself feel better.

Don’t compare yourself to others

It’s never a good idea to share your money situation with others. Money is a sensitive issue and it’s best to keep it under wraps unless you’re getting advice from a financial counselor.

This is because it’s easy to get caught up in comparing yourself to family, friends or colleagues, who may seem to have much more than you do. This can lead to envy and send you spiraling into a scarcity mindset rather than being appreciative of what you do have.

Don’t be deceived by appearances either. A friend who has designer lifestyle may be in debt up to their eyeballs!

Be aware of your money script

These are the mental messages you tell yourself on a daily basis about money (aka ‘money blocks’). We can think negative thoughts without even realizing we’re doing it. Money blocks usually involve complaining about money, thinking about what you don’t have or can’t do.

If you want to shape your financial life in a positive way then it’s important that you identify money blocks when they occur.

Changing your internal dialogue is a subtle shift but it’s powerful. Instead of saying to yourself “I can never afford that!” a more positive message would be “What steps can I take to afford that?”

Be grateful

Last but not least, be grateful for the money that you do have that allows you: to pay bills, to cover rent or mortgage payments, to buy food. Being grateful and feeling like you will always have enough money for the necessities in life helps to remove emotional triggers.

It’s when we’re feeling a lack of money, or jealous of someone else’s lifestyle that we’re likely to spend to make ourselves feel better.

Once you’re aware of your emotional triggers around money, then you become open to more opportunities and creative solutions. A successful money mindset shift only occurs when you can make decisions from an objective standpoint, rather than an emotional one.

For further reading about the money mindset check out this article The Ultimate Guide to Money Mindset Mastery which covers the subject in more depth and has a lot of steps you can put into action.