What Is Money Mindset? (and Why It Matters For Your Career)
I’m thrilled to see more and more personal finance gurus talking about the importance of money mindset alongside practical advice about earning, saving, and investing. But what is money mindset? And why is it important?
Today we’re breaking down these questions: what is money mindset, why it matters for your career, and how to start cultivating a healthy money mindset that primes you for success.
What Is Money Mindset?
To answer this question, let’s begin by understanding mindset.
Our mindset is how we view the world.
It’s the collective beliefs we hold about what’s “true.”
But really it’s just our perspective.
And it’s why two people looking at the very same bourbon glass can see it as half-full or half-empty. 🥃
So money mindset is the set of beliefs that we hold around money.
Over time, your money beliefs become a filter, or lens, which impacts the options you see and the actions you take (or don’t):
If you’re afraid to negotiate a salary offer because you think they might withdraw it, you’re unlikely to make a huge counter offer.
If you believe, “I always come out ahead when I negotiate,” you’re much more likely to go big—because you’re excited for the upside.
Do you see how your belief about negotiation—and importantly the FEELING that it evokes in you—leads you to take completely different actions?
This is money mindset at work.
So what is money mindset? It’s literally the roadmap for the actions you take around money.
Serious about mastering your money mindset? Check out my Teachable course! 👇
Serious about mastering your money mindset? Check out my Teachable course! 👇
“Expensive” Is In the Eye Of the Beholder
I had a FASCINATING conversation with one of my colleagues about false eyelashes.
After I complimented her on how fantastic her eyes looked, she revealed that she has her eyelashes professionally done every other week.
A quick google search revealed this can cost $200-400 a month.
Is that expensive? 🤷♀️ You tell me.
For her, it’s totally worth the time and money she saves not having to buy and apply eye make-up.
She adds that it’s also a worthy investment considering the “eye trauma” she’s had—surgery, doctor visits, eye drops, etc.
Not messing with make-up is a game-changer for her. That’s her money mindset.
What Does “Too Expensive” Actually Mean?
Is it “expensive” to have your house cleaned? How about buying a meal prep service or dining out multiple times a week?
Ask the people who invest in these things, and they’ll tell you how valuable it is: time saved on activities they don’t like and reinvested in the activities they do.
Plus, an “expensive” investment can become a no-brainer when you consider the long-term pay-off.
We all have things we HATE spending even a little money on AND things where we spend without a thought.
(I always manage to walk out of Walgreen’s $60 poorer, with a long-ass receipt and regret. But I spare NO EXPENSE when it comes to home furnishings.)
What is money mindset? Start by asking yourself what’s “too expensive?” What’s a worthy investment? What’s an absolute steal? It’s all about your perspective.
Why Is Money Mindset Important For My Career?
Now that we understand what money mindset is, let’s talk about why it’s important—and how our money mindset impacts more than just money.
As I mentioned, we have a lot of thoughts and feelings around money:
What it means to have a lot of it (or a little)
How hard we’re “supposed” to work to get it
Whether we’re good enough to ask for the amount we want (you can substitute experienced enough, smart enough, qualified enough, etc.)
Do you see how these thoughts might extend to your self-perception, work ethic, and perceived value?
Your money mindset influences whether you choose the paycheck over the work that lights you up.
Your money mindset impacts where you see the risk: languishing in a “safe” career that doesn’t fulfill you or betting on yourself.
Your money mindset reveals patterns about how you spend your time and energy: whether you habitually spend more than you have or feel anxious about spending any, especially on yourself.
Money Mindset Is About Values and Priorities
And there are nuances.
Two people might both value higher education. One might prefer to take out loans to earn a degree from an ivy league institution. The other might prefer a state school that gives them a full ride.
There’s no “right” answer. Only the right one for them depending on their lens.
Money mindset impacts your career potential in all sorts of ways beyond how much you earn.
Serious about mastering your money mindset? Check out my Teachable course! 👇👇
Serious about mastering your money mindset? Check out my Teachable course! 👇👇
How Do I Cultivate a Healthy Money Mindset?
“Ok, ok, I get it, Caroline. I’m starting to see how my money beliefs are informing my actions. Where do I go from here?”
Begin with awareness.
Ask these questions and notice the thoughts and feelings that come up:
How do you feel about your financial future?
How capable do you feel of earning the money you want?
Is the work you’re doing having the impact you want?
How valued do you feel for the work you do?
Is money the main thing preventing you from making the career moves you want to make?
Do you feel guilty about making a lot of money?
Do you believe career change means a major pay cut?
Do your answers leave you feeling empowered and confident? Anxious and stuck? Conflicted, resentful, and frustrated?
The first step is to examine the thoughts that are running silently in the background. Recognize they’re impacting the opportunities you see (or don’t).
Then notice where you’re letting worry, doubt, fear, frustration, and guilt drive your thoughts and actions.
Cultivating a healthy money mindset helps you understand how your limiting money beliefs are standing directly in the way of what you want…and how to consciously choose the thoughts that align with your values and goals—monetarily and otherwise.
It’s not about one outcome being better than other, like saving is good and spending is bad.
Two people can save 100k: one who hoards it out of fear that she’ll never have enough, the other who steadily saves because it gives her the freedom to start a business.
Feel the difference?!
Nor is it bad or wrong to prioritize a paycheck and benefits so you can reach an important financial goal.
It’s when that career decision feels like it’s your only option and it’s slowly killing you that we need to take a closer look at your money mindset.
It’s about understanding the energy that’s driving your choices, and choosing the thoughts that put YOU back in the driver’s seat.
What is money mindset? It’s everything. If you’re interested in learning more, check out my course: Easy Money: Master Your Money Mindset.
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Author Bio:
Before becoming a coach, Caroline worked in management consulting and financial services. She's made it her mission to help people grow, contribute, and get wherever they want to go.
She’s also a tennis fanatic, aspiring Minimalist, FIRE (Financial Independence and Retire Early) enthusiast, and Aloha Spirit seeker 🤙. She loves to share stories from her unconventional life and career focused on freedom, creativity, fun, health, family, and community. If she can do it, you can, too.
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