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When trying to be financially secure, having the right financial freedom mindset is a key component.
No matter how much money you have, unless you have the right mindsets, it will never feel like enough. Having the wrong money mindsets is not uncommon, and likely were established when you were young. But what’s important is recognizing where your mindsets aren’t serving you, and replacing them with ones that do.
In this article we’re going to explore 5 components of a strong financial freedom mindset:
- Recognize why you’re chasing wealth
- See money as a tool
- Gratitude
- Not envying others
- Recognize spending as a series of choices
Financial Freedom Mindsets
#1 – Recognize Why You’re Chasing Wealth
Chances are, you’re not chasing money for the sake of having money.
Money serves as an enabler. It can provide experiences, freedom, status, or stability. When you’re trying to achieve financial freedom, it’s important that you recognize what that means to you. Consider your values and ask yourself “what will achieving financial freedom do for me?” Defining your why will make your pursuit of financial freedom more meaningful. For example, “I want to have enough money to have the time freedom to spend with my family” is a lot more meaningful than “I want to be a millionaire.”
When you recognize your values, you may find that financial freedom isn’t as far away as you thought.
#2 – See Money as a Tool
Money on it’s own is useless, but money is a tool to obtain other things that are important to you.
By recognizing what’s important to you (financial freedom mindset #1), you can start to see money as a tool to get it. For example, if time with your family is what’s most important, money can be used to outsource chores that will minimize your time (e.g. cleaning, landscaping, groceries, etc.). Or if experiences are what’s most important, you can shift to see money as a way to enable these experiences. Money should never be the pursuit, but rather something you use to purchase the things that are truly important to you.
Once you start directing money towards what’s most important, it will start to feel like you have a lot more.
#3 – Gratitude
Consumerism runs on making you feel like you need more, but you can combat this by using gratitude.
Chances are, if you’re reading this, you are incredibly fortunate. You have access to the internet, the ability to read and learn, and are able to explore how to become financially free. Take a minute to be thankful for that. There will always be people around you that have more, but by being thankful for what you have and can do, you can feel a lot more secure financially. Find a way to make gratitude a part of your everyday life, and you’ll be surprised at the joy it can bring.
By focusing on what you have rather than what you lack, you will feel like the money you have is enough.
#4 – Not Envying Others
What you see when it comes to spending is never the full financial picture.
When observing others, it’s important to be able to separate spending from earnings, and recognize that just because someone spends a lot of money, doesn’t meant that they make a lot. It’s so easy to see someone make a big purchase and think “why can’t I do that?” The reality is, sometimes you can, you just choose not to. You prioritize your money differently. Someone may prioritize a designer piece of clothing when you would rather invest.
Start consciously recognizing when this is the case, and be confident in your choices.
#5 – Recognize Money as a Series of Choices
At any given moment, we are allocating all our money to what we think is most important.
That can include living expenses, discretionary spending, and saving/investing. When you decide to purchase something, it involves a tradeoff. Purchasing that thing means that you can’t use that money for something else. Often you can afford things, but you would rather spend your money differently.
What’s important is that you’re aligning your spending to your values.
Conclusion – Financial Freedom Mindset Is In Your Control
By adjusting your mindset to one of financial freedom, you can take back control.
Rather than being a slave to money, you can control the flow of money. Financial freedom involves making conscious decisions to direct money to what’s important to you. Changing to a financial freedom mindset won’t happen overnight, but start to look for times where you can implement the above ways of thinking.
You’ll start to find that financial freedom is less a factor of how much money you have, and more based on the way you think.