Financial Friday #142: Manage your Money Mindset and Nail your 2023 Financial Goals!
Your Money Mindset Matters
Are you a glass-half-full person or a glass-half-empty person when it comes to your financial outlook? With soaring prices, rapidly rising interest rates, and talk of a looming recession, it is getting increasingly difficult to remain positive and believe that things will get better in 2023.
The belief that there is enough money and financial resources available to achieve your goals and live a comfortable life is often referred to as a mindset of financial abundance. People with this belief tend to focus on solutions rather than problems and see opportunities for growth and abundance in every situation.
On the other end of the spectrum is a mindset of scarcity — the belief that resources, opportunities, and success are limited and there is not enough to go around. This mindset can lead to feelings of anxiety, fear, and mistrust and can cause one to make choices based on a perceived lack of resources rather than on their true needs or values.
The problem is that circumstantial factors heavily weigh on our mindset. If you were raised in an environment of scarcity or when times are tough like they are now, you can easily feel defeated when it comes to improving your financial situation. Overcoming this mindset is a huge roadblock and the starting point for financial reform, so how do you get there?
To develop a financial abundance mindset, you can try the following:
It’s easy to focus too much on the nuts and bolts of personal finance and overlook your mindset. For example, if you want to jump into self-directed investing, you must learn about the various mutual funds and ETFs available, how to assess and mitigate risk, manage fees, etc. However, a scarcity mindset can be so limiting that you may never ever consider investing in the stock market. Changing that mindset is obviously the first step, and it can be pretty hard to do!
It can also be hard to discern whether you have a mindset of scarcity or abundance — a little self-analysis might give you some great insights on your relationship with money and how you can start making some changes. It’s definitely a good starting point.
Resources:
Check out what the Financial Post says is in store for 2023 on everything from mortgage rates to inflation.
Is the "15% of your take home pay" rule for total car costs still relevant and if not, how much should you spend on a car?
Interest rates rose 4% in 2022 and it looks like another hike could be heading our way as early as Jan. 25 at the next Bank of Canada announcement.
Some are saying a recession is imminent while others say it is already here. Are we going to see job losses? further drops in real estate values? higher rents?
A one-time top-up of $500 to the Canada Housing Benefit to help low-income renters ($20K individual / $35K household) is available until March 31.