Is your money mindset impacting your life?
There's a new trend permeating the air for young Aussies, and it's not low rise jeans. 'Money Dysmorphia' is when a distorted view of your financial situation leads to contradictory and even harmful financial behaviour.
Switching your money mindset can be the difference between having a healthy relationship with money and meeting your goals, versus having a negative approach to finances and acting like a saboteur to your own goals. Insights from the latest Australian Youth Barometer survey tell us that young people who feel optimistic about their financial situation and future are also more likely to save. 1
Your money mindset could be impacting your financial choices. Here are three ways to reflect on your attitude to money, and to see if there are any beliefs that might be holding your back.
1. How were you raised to think about money?
For most of us, the way we see money stems from our upbringing. How our families talked about money, what our financial experience was growing up, and how money was used around us. Think about:
- Was money an issue/struggle for your family growing up?
- Did money issues put a strain on any family relationships?
- Did your family have control of their financial situation?
- Were you taught how to manage money and plan for the future when you were younger?
- What emotions did your family associate with money? (e.g: frustration, joy, jealousy, excitement?).
Think about how you answered these questions. Your responses are an important step in assessing your current situation, reflecting on your money story, and learning whether you need to change that narrative.
2. What does money mean to you now?
Are you conservative with money or spend freely? Worried about money or not too stressed? Do you enjoy talking about money, or does it make you uncomfortable?
Thinking about how you answered the above, see if you agree with any of these statements:
- All debt is bad.
- I’m not at the financial stage in life I should be.
- My friends are all financially better off than me.
- I never have enough money.
- I can’t improve my current situation so there’s no point trying.
- Money is overwhelming and complicated.
If you’ve said any of these to yourself before, know that it’s not too late to move past this mindset, build healthy money habits and improve your situation.
3. Do you compare yourself to others?
It’s easy to fall into the trap of comparing your situation or life to others. It’s a negative habit that can affect anyone, especially with the highlight reels we see on our friends and influencers social media feeds.
Consider if you’re setting unrealistic expectations of yourself. If you’re constantly trying to keep up with others, you’ll end up living beyond your means – which only leads to rolling debt and ongoing stress.
Flip your money mindset.
It’s completely natural to feel stuck but know that when you start thinking of your financial position as temporary, you realise you can change it.
Here are some ways you can start.
Re-write your money story.
Visualise how you want to think and feel about money. And we don’t mean the daydream of winning the lottery or discovering you’re secretly a European princess. How do you want your financial situation to make you feel? Secure, independent, in control, or confident?
Just like setting any goal, decide on what you’re striving for, and design a plan to get there.
If you want to feel more confident
Increase your financial literacy by talking to people about money, ask questions, read, or listen to podcasts that will help expand your knowledge.
If it’s independence you’re looking for
Start paying attention to your bank statements and understand where your money is going. Set up an emergency savings fund and add to it regularly, so you can support yourself if something unexpected happens.
If you want to take back control of your finances
Assess your debts and plan how you’ll pay them off. They might not disappear overnight, but having a plan in place is going to help you feel like you’re taking some power back.
If you’re looking for security
Think about creating a five-year plan for yourself, and what working towards those goals look like financially. Check in with your superannuation – could you find a better fund, or make regular contributions? Consider health insurance if you don’t have it already, anything that is going to give you security when life throws a curveball.
Hit reset on those negative money thoughts.
We are what we repeatedly think about. Let that sink in.
While there are more tangible ways to take control of our money through budgeting, saving, and creating good money habits, the way we speak to ourselves about money also needs to change.
When we’re more actively aware of our internal chatter, it can be a sobering realisation. Negative self-talk can be in the form of telling ourselves things won’t work out; or that we’re not good enough to achieve something. Take note of what you’re saying to yourself, and if a negative thought creeps in, try one of these statements instead:
- I am putting in the work to achieve my goals.
- My current situation is temporary, I can move past this.
- I am doing the best I can with what I know, and working on what I don’t.
- I can manage my debt and take control of my finances.
Re-think who you follow on social media.
If certain people in your feed are leaving you feeling miserable or inadequate – unfollow them. If keeping up with the latest trends is derailing your savings habits, cull some of the brands you follow, unsubscribe from their emails and text messages – remove yourself from the narrative just like Taylor Swift would.
Look for more relatable people on social media that align to your lifestyle and values, or influencers who get you excited about other hobbies that you enjoy – you can curate the feed you want to see every day, not the other way around.
Try starting a gratitude journal, where you write down three things you’re grateful for each day. Practising gratitude can help you take stock of what is important to you, and how lucky you are for what you already have - even if it doesn’t always feel like it.
Take control, with a little help.
Changing your money mindset isn’t as easy as flicking a switch, but with a bit of work and the right tools in place, you can make it happen. If you have a Future Saver account on the myBOQ app, there are plenty of features to help you stay on track with your goals as you see your savings grow.
[1] Insights taken from the Australian Youth Barometer, published on the Monash University website. Find out more.
