5 Secrets to Master Your Money Mindset - Frugalish Family (2024)

Your money mindset greatly influences how you handle your finances and, ultimately, your future financial success and stability.

You may be wondering what the heck is a money mindset?Great question!A money mindset is the beliefs and attitudes we have about money.

Most of us don’t give too much thought to how we actually spend money. We just know we need or want something and then spend the money. Most times, leading us into debt and living paycheck to paycheck.

Honestly, I used to think debt and living paycheck to paycheck was normal. I thought being overwhelmed with debt was just part of adulting.

This scarsity mindset led me to frivolous buys and constant overspending, resulting in financial stress and strain on my marriage.

So, today we’re going to talk about small steps you can take to master your money mindset, build healthy new habits, and take control of your finances for good.

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Table of Contents

What is a toxic money mindset?

A toxic money mindset is a negative attitude about money that leads to bad money habits that keep you broke. Here are the top five negative money mindset quotes we tell ourselves that can be extremely harmful.

5 Secrets to Master Your Money Mindset - Frugalish Family (1)

I work hard, and I deserve this.

We tend to tell ourselves it’s OK to spend money because we work hard for it. This may be true, but not at the expense of debt. This kind of entitled thinking leads to spending money you don’t have.

I’ll never be good with money.

Practice makes perfect. If you never put the effort in to learn how to manage your money, you’ll never be good at it. The more you budget, save, and question every purchase, the better you’ll get at managing your money.

I just need to make more money.

Honestly, it doesn’t matter how much more money you make. If you can’t handle your personal finances now, you won’t be able to manage them with a pay bump. When you’re not budgeting, and your spending is out of control, you just have more income to spend.

Everybody has debt

Spending money we don’t have has become the norm nowadays. But as the old saying goes, “if everyone jumped off a bridge, would you?” That saying always seemed silly to me, but when you put it in the context of debt,would you go into debt just because everyone else was doing it? It seems even sillier.

You can’t take it with you when you’re gone.

That’s true you can’t take it, but do you want to live the life you have stressed because you can’t manage your finances. You can enjoy your life without digging yourself deep into debt.

What is the right mindset for money?

Having the right money mindset will completely change how you handle your finances. It’s a healthy balance between saving and spending.

How do I master my money mindset?

Here are the five secrets to help you master your money mindset and change your financial future.

Secret #1: Find your focus!

You need to figure out your ultimate “why” for changing your money mindset. Decipher what negative self-talk is affecting your money mindset, why you’re telling yourself them, and why you want to change.

What toxic money thoughts do you have?

Figure out how you feel about money? Do any of the harmful thoughts above resonate with you? Do you feel like you’ll never get ahead or make enough money? Does the topic of money make you physically ill? List all your negative thoughts about money.

Why do you have these toxic money mindset thoughts?

Our money mindset is influenced mainly by what we learned growing up and our environment.

“Genetics loads the gun, environment pulls the trigger.”

Brené Brown

We may have learned how to manage our money from our parents, but our environment and emotional well-being ultimately trigger our spending.

So, figure out where your beliefs about money come from, so you can make a plan to change them.

Why do you want to change your toxic money mindset?

Next, you have to do some self-reflection. Why do you actually want to change your money mindset?

This may seem like a dumb question. But it’s something you have to ask yourself to change. This is probably the most important question because this “why” will keep you motivated to make better choices.

For example, my toxic money mindset, which led to overwhelming debt and terrible spending habits, affected my marriage, family life, and mental health. I wanted and needed to change my mindset and spending habits for the well-being of my family.

Secret #2: Manage your money!

Managing your money is necessary for developing a positive money mindset. To do this, you need to know your spending behaviors, create a monthly budget, and track your spending.

Look at your spending behavior

Start by reviewing 2-3 months of bank statements, and look at how you spend money. Then, break the spending into categories (housing, groceries, transportation, debt, saving, lifestyle, etc.) and total your spending in each category.

This was a huge eye-opener for us. We saw that we were just blowing our money on ridiculous stuff. Fast food was our definite pain point. You’ll probably be shocked at the unnecessary spending you’re doing too!

Start budgeting

Budgeting every month is crucial for a healthy money mindset. A zero-based budget will help you organize and plan where you want your money to go. By creating a monthly budget, you’ll be able to do more with your money, like pay off debt, save money, or spend on what makes you happy.

You can use pencil and paper, a spreadsheet, or an app likeEveryDollarto help budget your money. Pick a style that works for you.

Track your spending

Tracking your spendingis going to keep you accountable to your budget. Every purchase should be written down; this way, you know you are keeping within your budgeted spending.

Related:

How To Create A Zero-Based Budget To Simplify Your Finances

12 Reasons Why Budgets Fail And How To Fix It

How To Use EveryDollar App To Better Manage Your Money

12 Important Reasons And Benefits Of Tracking Your Expenses

Secret #3:Start saying NO!

You need to set boundaries for your money. And just like you would with any boundary, you have to start saying no. Because if you never say no, especially to things you can’t afford, you’ll never be able to change your money mindset.

Stop using credit

You have to say no to those credit cards. Get rid of that mentality that you need them for emergencies. You don’t need credit cards for emergencies; you need an emergency fund.

Did you know Americans spend approximately $120 billion in credit card interest and fees every year (Consumer Financial Protection Bureau)? Banks are getting richer because we have become dependent on loans and credit cards to get us out of tight situations or buy things we can’t afford.

If you ever want financial stability, you have to say no to using credit cards!

Make a plan

Come up with a plan for how to pay off your debt. Prioritize your debt in the order you want to pay it off, and then start tackling those debts one by one.

Knowing how to budget and track your spending will be incredibly helpful.

Pay off debt

Put your plan into action. Find ways to spend less money and ways to increase your income.

  • Cut cable
  • Cook at home
  • Cancel subscriptions
  • Get a second job
  • Sell your stuff

It’s not easy. Actually, it’s really freaking hard! But you can do it even if you’re broke. We did it on one income!

And trust me, with the work you put into paying off your debt, you’ll never want to go back into debt again!

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5 Secrets to Master Your Money Mindset - Frugalish Family (2)

Secret #4:Learn to be content!

Contentment is being truly happy and satisfied with what you have. It’s an abundance mindset. If you never learn to find a sense of contentment, you’ll just continue to spend money to find it.

So how do you learn to be content? It can be challenging, but here are some things you can do to get started.

Be Grateful

Finding contentment starts with being grateful. Every day, you should count your blessings.

Some days it may seem like you don’t have much to be grateful for, but try to find at least one thing. Slowly you’ll see a positive difference in the way you think.

Some ways to track your gratitude are…

  • On paper with a journal or notebook
  • On your phone with an app (I love the 5 Minute Journal app)
  • Through prayer or meditation

Embrace Minimalism

Embrace a more minimalist lifestyle. Minimalism is removing unwanted clutter, which can apply to many aspects of your life.

  • Finances
  • Things
  • People

Take a Marie Kondo approach, and ask yourselfdoes this bring me joy? If your answer is no, then thank it and send it on its way.

When you embrace a minimalist lifestyle, your wants become less, which means you buy and spend less. We have never been happier with our minimalist lifestyle.

To find out more about minimalism, here are some helpful resources.

Related:

Minimalism for Beginners: How to Simplify and Enjoy Your Life

How to Minimize Your Life and Maximize Your Happiness

Declutter your mind space

We get so caught up comparing ourselves and our lives to others; it’s exhausting! Social media can be so superficial and toxic.

Everything looks perfect in a split second it took to take a picture. But we don’t know what is happening in all the other seconds, minutes, and hours of their day.

So, stop trying to keep up with the Joneses because they’re probably secretly trying to keep up with someone else. Therefore, live within your means, learn to be content and thankful for what you have, and love people, not things.

Secret #5: Be generous!

I believe that if you put good out into the world, good things will come back to you. The act of generosity changes how you think about money because you’re serving and thinking of other people first.

“Live like no one else so that later you can live and give like no one else.”

Dave Ramsey

I love this quote by Dave Ramsey! This is why I love the Baby Steps so much because it’s about becoming financially independent and wealthy so that you can be outrageously generous.

You can still practice generosity even if you don’t have money to give. Here are some ideas.

  • Volunteer your time with an organization
  • Donate gently used items to those in need
  • Donate your old towels, blankets, and sheets to an animal rescue (they need love too!)
  • Help a neighbor in need with tasks around the house
  • Visit a nursing home or assisted living facility, and spend time talking with the residents.

Related: Dave Ramsey’s 7 Life-Changing Financial Baby Steps

Conclusion

A toxic money mindset can be very harmful to your finances. It can lead to debt and living paycheck to paycheck, and in today’s world, it’s pretty easy to get caught up in this way of thinking. Thoughts likeI work hard, so I deserve thisoreverybody has debtcan leave you broke.

But you can change your way of thinking by

  • Finding your focus
  • Managing your money
  • Saying no to debt
  • Learning to be content
  • Being generous

A healthy relationship with money will help you achieve financial freedom. When you master your money mindset, you can live the life of your dreams without financial stress.

Have you ever struggled with a toxic money mindset? Leave a comment below!

5 Secrets to Master Your Money Mindset - Frugalish Family (2024)

FAQs

How to live frugally on one income? ›

Living on a one-income budget
  1. Assess your financial situation. Start by understanding your current financial status. ...
  2. List fixed expenses. ...
  3. Track changing expenses. ...
  4. Differentiate needs vs. ...
  5. Set financial goals. ...
  6. Create an emergency savings fund. ...
  7. Allocate for savings. ...
  8. Start a debt repayment plan.

How do I reprogram my money mindset? ›

Six Steps to Creating a Positive Money Mindset
  1. Forgive Your Past Financial Mistakes. No one is perfect. ...
  2. Understand Your Thoughts and Emotions Surrounding Money. ...
  3. Realize That Comparing Yourself to Others is a Losing Game. ...
  4. Work on Forming Good Habits. ...
  5. Create a Budget That Brings You Joy. ...
  6. Remember to be Thankful.

How can I be financially smarter? ›

7 financial habits to help make you smarter with your money
  1. Automate whatever you can. Automate your savings, automate your loan repayments, automate your bills. ...
  2. Have specific, meaningful goals. ...
  3. Invest. ...
  4. Don't spend that unexpected cash. ...
  5. Prioritise high interest debt. ...
  6. Track your spending. ...
  7. Learn however you can.

How can I control my mind from money? ›

It might help to keep a diary of your spending and your mood, to record what you spend and why. You could record how you were feeling before and afterwards too. Once you've done this, you might start to feel like you understand your habits and patterns around money a bit more.

Can a single person live on $1000 a month? ›

Living on $1,000 per month is a challenge. From the high costs of housing, transportation and food, plus trying to keep your bills to a minimum, it would be difficult for anyone living alone to make this work. But with some creativity, roommates and strategy, you might be able to pull it off.

How to only spend $1,000 a month? ›

Surviving on $1,000 a month requires careful budgeting, prioritizing essential expenses, and finding ways to save money. Cutting down on housing costs by sharing living spaces or finding affordable options is crucial. Utilizing public transportation or opting for a bike can help save on transportation expenses.

How can I rewire my brain for money? ›

6 steps to rewire bad money habits
  1. Identify your triggers. Let's say you've developed a shopping vice. ...
  2. Stop the physical repetition. Habits are reinforced by repetition. ...
  3. Consider a spending fast. ...
  4. Practice mindfulness. ...
  5. Envision the bigger goal. ...
  6. Work with a professional.

How to rewire your brain for abundance? ›

By repeating positive affirmations daily, you can reprogram your subconscious mind for success. Focus on affirmations that resonate with your goals, such as “I am capable and resourceful,” or “I am worthy of abundance.” Visualization is a powerful tool for rewiring your brain.

How to change your mindset from poor to rich? ›

Practice Gratitude. ... Visualize Abundance. ... Set Clear Goals. ... Create a Positive Money Mindset. ... Take Responsibility. ... Develop a Growth Mindset. ... Educate Yourself About Money.

What is the 50 30 20 rule? ›

The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).

What are good spending habits? ›

Save early and consistently, and create a budget to manage spending effectively. Pay off high-interest debts first and consider consolidation or refinancing for better terms. Regularly check accounts, apply the 24-hour rule to avoid impulse buys, and use expert resources to learn how to be better with money.

How can I empower myself financially? ›

  1. Set Life Goals.
  2. Make a Monthly Budget.
  3. Pay off Credit Cards in Full.
  4. Create Automatic Savings.
  5. Start Investing Now.
  6. Watch Your Credit Score.
  7. Negotiate for Goods and Services.
  8. Get Educated on Financial Issues.

How to get a millionaire mindset? ›

How To Develop a Millionaire Mindset and Get Rich
  1. Cultivate a Growth Mindset. ...
  2. Set Clear Goals. ...
  3. Invest in Education. ...
  4. Embrace Calculated Risks. ...
  5. Develop Multiple Income Streams. ...
  6. Live Below Your Means. ...
  7. Network With Like-minded Individuals. ...
  8. Stay Positive and Persistent.
Oct 6, 2023

What is money anxiety? ›

Financial anxiety, or money anxiety, is a feeling of worry about your money situation. This can include your income, your job security, your debts, and your ability to afford necessities and non-essentials.

What is a realistic living budget for a single person? ›

The average monthly expenses for one person can vary, but the average single person spends about $3,405 per month. Housing tends to consume the highest portion of monthly income, with the average annual spending on housing at $1,885 per month per person.

What is a comfortable income for a single person? ›

The national median for living comfortably alone is $89,461, which suggests that a 50/30/20 budget might not be practical for most single people. Living alone comes with added costs that can be more than double what you'd spend if you lived with someone else — otherwise known as the “singles tax.”

How to afford to live single? ›

  1. Know What You Can Afford to Spend. ...
  2. Set Priorities for What You Want. ...
  3. Consider a Roommate - but Find the Right One. ...
  4. Consider Short-Term Rentals if Your Living Situation Is Flexible. ...
  5. Look for Ways to Save on Non-Housing Costs. ...
  6. Have Realistic Expectations for Moving to a Big City.
Oct 31, 2023

How can a single person afford to live on their own? ›

But you can manage your living expenses by budgeting, setting up automatic payments, knowing when to say no to unnecessary spending, and controlling what you can (like your utility costs). With a little planning and mindfulness, you can make sure that your living expenses don't leave you in a financial bind.

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