In our last blog, “Debunking Common Myths about Money”, we listed five commonly held myths about money:
Myth 1: More Money Equates to Happiness
Myth 2: Investing is Only for the Wealthy
Myth 3: Debt is Inherently Bad
Myth 4: Financial Planning is too Complicated
Myth 5: Savings Alone Ensure Financial Security
We attempted to demystify each above myth individually. In this blog we're going to explore ways that you we can begin the journey of re-training your mindset toward money in order to achieve our financial goals.
As we each journey towards financial empowerment, the role of your mindset cannot be overstated. It is the single most significant indicator of financial success! Beliefs about money significantly shape one's financial behaviors and outcomes. Let’s explore how mindset influences financial success and strategies to change the common misconceptions surrounding money, leveraging insights from our extensive experience in financial coaching and supporting organizations in reaching their desired cultures.
The Power of Mindset in Financial Success:
1. Growth vs. Fixed Mindset:
A growth mindset, as opposed to a fixed mindset, believes in the potential for personal development and financial growth. Individuals with a growth mindset are more likely to embrace challenges, persist through difficulties, and view failures as opportunities to learn and improve their financial strategies.
2. Abundance vs. Scarcity Mindset:
An abundance mindset focuses on the possibilities and opportunities, which are crucial for financial success. In contrast, a scarcity mindset dwells on limitations and often leads to fear-based financial decisions. Shifting towards an abundance mindset encourages a more proactive and optimistic approach to money management.
Strategies to Change Beliefs about Money
1. Education and Awareness:
Knowledge is a powerful tool in debunking myths. Onyx Rising’s financial wellness workshops are designed to equip individuals with the necessary skills and understanding to navigate financial challenges and make informed decisions. Learning about the basics of investing, savings, and the impact of debt can alter perceptions and foster a healthier financial mindset.
As an employer or HR professional, investing in financial wellness workshops as an employee benefit can have an immediate and lasting effect on your employees and organization's culture.
2. Reflective Practices:
Encouraging individuals to reflect on their financial beliefs and where they stem from can be transformative. This may involve journaling their spending habits or reflecting on their emotional responses to spending and saving. Such practices can uncover deep-seated beliefs that may be holding them back.
So many of our beliefs about money are rooted in our upbringing. Reflecting on how your parents handled money can be very insightful in understanding your own behavior. I know this to be true in my own personal journey to financial independence. I was raised in a household of eight children where both parents worked. While my father worked multiple jobs. Despite their hard work, bills went unpaid and collection notices were common. I learned that I needed to change my priority from that of my parents and decide for myself what was most important to me in my individual financial journey.
3. Setting Realistic Goals:
Utilizing our DESTINE model, we help clients define clear, achievable financial goals aligned with their values and long-term vision. This strategic planning helps in gradually replacing money myths with a structured and realistic approach to financial management.
Setting realistic goals requires commitment, consistency and accountability. Like in other areas of life where change is desirable, an accountability coach may be helpful—someone to help monitor progress. Starting with small goals and increasing them is one great way to change our mindset. For instance, committing to decreasing the daily trips to Starbucks, packing your lunch from home vs eating out, or saving the change from cash transactions to begin your savings are just a few examples.
4. Mentorship and Support:
Engagement in diverse mentorship initiatives provides individuals with role models and advisors who can offer real-life insights and success stories. This support is crucial in changing how individuals perceive their financial possibilities.
5. Community Learning:
Participating in community discussions about finances can help break down the stigma surrounding money talk and expose individuals to different perspectives and successful financial strategies. This is particularly effective in DEI-focused environments where diverse experiences can broaden one’s understanding and approach to wealth.
Conclusion
A positive and informed mindset is key to financial success. By debunking common money myths through education, reflective practices, and strategic planning, individuals can develop a healthier, more effective relationship with money. The Onyx Rising team, including experienced leaders like Kelli Lester and Irma Neal, is committed to guiding our clients through this transformative process, ensuring that they not only achieve their financial goals but also contribute to a more equitable and inclusive economic environment.
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