This article was written by a Guest Contributor.
If you’re serious about achieving your financial goals, you must understand the importance of establishing a good money mindset. This post explores 5 important money mindsets to help you achieve abundance.
1. Believe that you can
The first mindset belief to build wealth is to believe that you can.
You can start saving & investing no matter how much you are earning right now, no matter how much you doubt yourself.
Don’t make excuses for yourself!
Nobody was born good with money. We all had to start somewhere, and you can too!
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2. Abundance mindset vs Scarcity mindset
Arguably the most important mindset shift is to embrace an abundance mindset.
Believe that you can invest smartly and grow your money.
Scarcity mindset:
- I’m not good with money
- People with money are greedy
- Someone else will invest my money for me
- I’m not (smart/earning/ready…) enough
Abundant mindset:
- I can start right now
- I love learning about investing and building wealth
- I am making progress
- I can take charge of my own finances
- I can do good things with money
- I will achieve my goals
Interestingly enough, a lot of these mindsets start from childhood.
Maybe it is the way you were raised, how your parents viewed money, and how people around you behaved around money.
Think back to your earliest memories of money – was it a positive/negative association? Did you have a feeling of lack or abundance?
All of these mindsets can be shifted – by changing your beliefs, you can change your actions and reality.
3. Commit to Healthy Habits
The next important mindset shift is commiting to it.
You must take action, and the best way is to build healthy habits.
Small, actionable steps that become your routine.
For instance:
- Automate your savings every month
- “Pay yourself” first before you spend money
- Set up a budget and track it
- Track your outgoings and ingoings every month
- Use an App or consolidate your finances through SGFinDex
- Optimize your CPF/SRS
- See also why you should top $1 into your SRS
- Make it a priority to invest!
- Rebalance your investment portfolio bi-annually
4. Reality Check
Another important mindset shift is having a reality check.
Instead of comparing yourself with others’s highlight reel (e.g. social media), compare with yourself and how far you have come.
Be proud of your progress!
Know that you are fortunate and have things to be grateful for.
If you’re reading this, you have access to clean water and the internet.
Singapore is widely regarded as one of the safest countries in the world.
Be grateful for the small things as well.
Waking up every day to a coffee, being able to take a walk, connecting with your friends and family etc.
Look around you and appreciate the small things.
5. Spread the Love
Finally, spread the love!
Being able to share and give back to others is part and parcel of having an abundant mindset.
Having an abundant mindset means believing that there is an abundance in the world, and there is more than enough for everyone.
Additionally, other people’s success doesn’t diminish your own.
A caring society is a compassionate one that cares for the less fortunate.
It’s more convenient than ever to give back, check out Giving.sg and their campaigns (plus there’s even a tax incentive!)
