There are a couple of different mindsets we can have when it comes to making money: Fixed and Growth.
A person with a fixed mindset assumes that they are born with certain characteristics, strengths and talents that they can’t change.
On the other hand, someone with a growth mindset maintains the idea that while they may have both strengths and weaknesses, they can actually improve their performance in both these areas.
Now having a growth mindset doesn’t mean that you can be great at everything.
If you have struggled with maths, for example, you may still be challenged when it comes to solving a complex algebraic equation. However, a person with a growth mindset knows 100% that they can improve their understanding of numbers.
Taking this example a bit further, improving your understanding of maths may not mean you can now become a chartered accountant, but it could make the difference when it comes to setting a budget and sticking to it.
And if you are already good at something, then a growth mindset helps to move you from good to great!
When it comes to mindset and money, it is not about how much money you have that makes the difference, it’s what you think you can do about your situation.
I notice that clients with a fixed mindset often feel trapped by their circumstances. Their challenges around money seem insurmountable. They feel like they can never get out of debt or struggle with their financial situation. A fixed mindset becomes evident in the language used. Every time they make a mistake, they see this as a reflection of themselves and of not being good enough.
With a growth mindset, the focus is more towards problem solving.
Clients acknowledge that things aren’t working out, but then get curious about how they can change the process or do something differently to get a better result next time.
People with a growth mindset are not a victim of their circumstance and they will approach the same situation with comments like “I had a budget for this month and I wasn’t able to live to it, which means I need to examine what happened. I need to change the tools I used or the approach I took. What systems can I put in place to get better results next month”.
Clients with a growth mindset view the problem not as something fixed in time and insurmountable, but something they can learn and improve on.
Which mindset do you tend to have when faced with a challenge?
Time to change your mindset and achieve your financial goals? Contact me for a free, confidential chat and let's get started!
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