What’s Your Relationship With Money?
On your internet travels you may have heard the term “money mindset”.
When we run a business, money is likely to be on your mind, every single day.
This quote, that invoice, chasing late payments or paying the bills. It’s a hum in the back of our heads that rarely switches off. Or does it?
You might have seen various business gurus on the internet wanging on about “money mindset” and how to “attract abundance” and “wealth”.
I don’t really go for that sort of thing myself, but I thought you might enjoy my take on it.
Mindset in its simplest form refers to our worldview. How and why we see all aspects of life. Our opinions tend to reflect our culture, care-givers, upbringing, environment, educational background and generation to name a few.
I’m a big fan of questioning the old “mindset” – especially when it comes to money. In short, it’s the quickest way to identifying mental blocks that interrupt business sense.
So let’s take a look at how our environment can impact how and why we feel “a certain way” about income. This is Money Mindset part 1.
What are your beliefs about money?
People perceive money through a their own set of specs. These could reflect cultural, personal, and philosophical perspectives.
For some “money is the root of all evil”. For others it can buy happiness if you know what you’re looking for.
The contrasting beliefs underscore the dichotomy in attitudes towards wealth, where its influence on character and morality is hotly debated. Some view money as a means to an end, a tool that can get you what you really want in life. Others see that as “grabby”.
Ultimately, whether seen as a conduit for malevolence or a source of joy, money remains to be seen as a tool that can help or hinder. It just depends on how you look at it.
But what shapes how we see money?
Let’s blame our parents. Hooray!
The Fear of Scarcity
Growing up in an environment where every penny is pinched can leave a lasting impact on a child’s perception of money. Parents who constantly express fear about not having enough or the looming threat of financial scarcity may inadvertently instill in their children a negative money mindset.
The constant emphasis on saving at the expense of enjoying life and investing in experiences may lead to a scarcity mentality, making it challenging for individuals to see money as a tool for growth and fulfilment. You might recognise yourself as one of those children.
Moreover, children raised in an atmosphere of financial anxiety may develop a reluctance to take calculated risks or invest in their own potential. They squirrel away cash and could be keen to identify value based on price-point.
The fear of scarcity, ingrained during childhood, can hinder one’s ability to embrace opportunities that require financial commitment.
Materialism/Status Symbol
Environments that prioritise material possessions as a marker of success may unwittingly encourage a skewed perception of wealth.
If we grow up equating happiness and success with the accumulation of material goods, we might just develop a materialistic mindset that prioritises outward appearances over financial or emotional well-being. This can lead to a constant pursuit of validation through possessions, perpetuating a cycle of overspending and sometimes, debt.
When it comes to status symbols and spending, the concept of ‘keeping up with the Joneses’ a become deeply ingrained. Individuals might find themselves trapped in a cycle of comparison and discontent, constantly chasing the next purchase to maintain a façade of successor feeling good.
Taboos Around Money Talk
Was money a taboo in your home?
Some parents avoid discussing money matters altogether, deeming it a taboo subject. While this may stem from a desire to shield their children from financial stress, it can inadvertently create a void of knowledge and understanding. Growing up without open conversations about budgeting, saving, and investing may leave individuals ill-equipped to manage their finances responsibly.
Children of parents who keep financial matters hidden may struggle with budgeting, financial planning, and understanding the implications of their financial decisions. This lack of transparency can lead to a negative money mindset rooted in confusion and a fear of the unknown. Not ideal if you run a business.
Perfectionism
Parents who uphold an image of financial perfection, where every financial decision appears flawless, may set unrealistic standards for their children.
Constantly witnessing impeccable financial management can create a sense of inadequacy in individuals who, in reality, might grapple with financial challenges. This can foster a negative money mindset characterised by self-doubt and a fear of making financial mistakes.
The pressure to live up to an unattainable standard may lead to anxiety and avoidance of financial responsibilities, as individuals fear falling short of the perceived perfection they witnessed in their parents’ financial practices.
It’s all smoke and mirrors, boys.
Instant Gratification Over Delayed Rewards
Parents who consistently prioritise instant gratification over delayed rewards may contribute to the development of a negative money mindset in their kids.
If children observe their parents consistently indulging in impulsive spending and prioritising short-term pleasures, they may internalise a belief that immediate gratification is the key to happiness.
This mindset can hinder the ability to save for long-term goals, invest thoughtfully, or delay gratification for more greater or long-term rewards.
The impact can extend into adulthood, where individuals struggle with impulse control and face challenges in building a secure financial future.
Feeling Seen?
If you recognised your spending or saving habits here, the good news is you’re one step closer to recognising triggers and patterns in your own financial life.
That might mean overcoming debt, saving, or maybe looking at loosening the purse strings to enjoy life more.
Mindset is all about questioning your worldview and training your cheeky little brain to behave (or at least serve you better). Half the battle is knowing what sets you off and seeing where goals are best applied to your business’ financial lifespan.
Stick around for Money Mindset part 2, where I’ll be looking at strategies for financial planning and the FIRE movement.
About the Author
Catherine Jarvis Clothier is a digital marketer and online presence specialist living and working in Kent, UK. She has worked in unusual UK businesses for over 10 years across the South of England, particularly in automotive and therapy-based enterprises. Catherine specialises in social media, SEO and web design. She can be contacted here for online business consultations.
