Home LifeStyleFinance The importance of a mindset change to improve your financial situation

The importance of a mindset change to improve your financial situation

by Tania Griffin

In a world where financial challenges prevail, individuals are increasingly recognising that their financial well-being is not solely determined by numbers, but also by their mindset. Understanding the significance of changing our mindset toward money is becoming more widespread as people acknowledge the impact of their beliefs and attitudes on financial stability.

Our association with money begins from how we are socialised with money in our childhood; whatever our upbringing, most poor financial decisions indeed come from how we think about money.

Dr Khosi Jiyane – a clinical psychologist specialising in transformative learning, accountability and change – emphasises the importance of altering our perspectives on money to enhance our financial circumstances.

She says valuing ourselves based on our net worth is misguided, as self-worth should not be equated with financial status. Furthermore, attempting to keep pace with the financial status of peers can lead to detrimental consequences, potentially resulting in financial distress.

To expand this message, Dr Jiyane advocates for a shift in thinking about money as a requirement for improving our financial outlook. Seeking assistance when feeling overwhelmed by financial pressures is crucial.

Organisations like Metropolitan offer a range of resources to provide individuals with both psychological and practical support in managing their finances effectively. Collaborating with a financial planner can aid in creating a strategic plan to rectify financial missteps and avoid detrimental behaviours stemming from an unhealthy money mindset.

Dr Jiyane shares the following tips on how consumers can remain mentally and financially strong in 2024: 

  1. Foster transparent conversations about finances among your family and friends to cultivate a culture of openness.
  2. Set definitive financial limits with your close ones to safeguard your financial stability.
  3. Transition from a victim mentality to one of empowerment by proactively pursuing and developing avenues for financial advancement.

Image credit: Freepik

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