5 Money Mindset Tips for Beginners

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When it comes to making money and receiving more of it into our lives, mindset matters. We may not always be aware of how much we have to unlearn to have a healthy relationship with money, or how deep those unhelpful beliefs go. But a lot of what goes into developing a positive money mindset has to do with unlearning negative past conditioning around money.

When people haven’t been taught to focus on mindset when it comes to money, it can be hard to know where to even begin. How do you start to shift your mental money talk to something more positive and useful? This is something I’m learning right now, and I would like to share what I’m learning with you. So, if you would like to develop a better relationship with money, here are five tips to get you started.

5 Tips for Beginners to Develop a Positive Money Mindset

1. Understand that money is abundant.

   When you understand that money is everywhere, you don’t insist on receiving it from only one source. For instance, many people rely on only one source of income for most of their money needs. But there are two main problems with this mentality.
   
   The first is, what happens if that one source goes away? When the pandemic hit, many people found themselves out of work. And companies may lay off workers for one reason or another. I don’t think any of that is ever part of an employee’s plan. But it’s true that when you’re an employee, you’re at the mercy of whoever is paying you.
   
   The second problem is, there’s always going to be a limit to how much you can earn when you’re receiving money from an employer. Even if you’re earning a large salary, there’s still a cap. But if you decide to go into business for yourself, there’s no limit to how much money you can earn. Many people are reluctant to take this leap because they see it as such a risk. But I think the bigger risk is in relying on only one source of income.
   
   Understanding that money is abundant allows you to open yourself up to new sources of money so you’re not only reliant on one. It may encourage you to take on a side hustle or find passive income streams that you can add (more on this in #4). Having multiple sources of income acts as a kind of shield against the uncertainties of life. Even if one goes away, you still have others you can rely on.

2. Release limiting beliefs around money.

   People will have different limiting beliefs around money, but here are some common examples: “I have to work hard to make money.” “There’s never enough money to go around.” “I’m not good with money.” “I can’t afford that.”
   
   Let’s take a look at the first example: “I have to work hard to make money.” While hard work is necessary to make money, hard work alone won’t lead to wealth. For that you need leverage. This is when you put systems and/or people in place who work for you and allow you to do more than you could on your own.
   
   Say, for example, you’ve just started a business but you’re not great at accounting. You might consider hiring an accountant so you don’t have to manage the money on your own. In fact, you can delegate any task you would prefer not to do, leaving you to focus on what you do best. So, while you’re still working hard, it’s not as hard as if you were doing everything yourself.
   
   And if you’re doing something you enjoy, it won’t even feel like you’re working. Throw in a few passive income streams (see #4), and now you’re not even having to work so hard. This is how you release a limiting belief like that.
   
   Take time to analyze your personal limiting beliefs around money. Do you ever look at something you might call “expensive,” sigh, and then say, “I could never afford that.” Talk like that will keep you from developing your money muscles. It puts a stop to your brain’s efforts to figure out how you can afford it.
   
   But if you say instead, “I can afford that,” now your brain goes to work trying to figure out how you can afford it. So, as soon as you’ve identified your limiting beliefs around money, try to reframe them as empowering beliefs that open you up to possibilities.

3. Associate money with positive things.

   Money itself is neutral. It’s not good or bad, it’s not positive or negative. Money is just money. We’re the ones who bring value to it. We decide whether it’s good or bad, positive or negative. And the way we choose to classify money will determine our relationship with it and how much of it we’re willing to welcome into our lives.
   
   What do you currently associate money with? Do you associate it with evil or greed? Do you associate it with inequality or injustice? Regardless of the negative associations you may have with money, you can decide right now to associate it with things that encourage you to invite more of it in.
   
   To develop a healthier money mindset, try to associate money with positive things. How about freedom? Or choices? Or generosity? If you’re someone who enjoys giving money to others in need, having more will allow you to have that much more to give.
   
   And while you’re at it, try to associate wealthy people with those things, too. Because your mindset about wealthy people also says a lot about your money mindset.

4. Think of passive income as the next best thing to winning the lottery.

   People often talk about winning the lottery as if that were the only way they would ever have the large quantities of money they dream about. But there is another way to become wealthy, and it doesn’t require you to pick any winning numbers.
   
   Passive income is income that comes to you with little effort on your part, and there are many different types. There are more traditional forms of passive income, like stocks and real estate. And then there are less traditional forms, like money earned from selling an ebook or an online course.
   
   While you usually do have to do some work up front to start generating these income sources, all of them can lead to a place where you’re bringing in money while you sleep. That’s where real wealth is built.
   
   The thing is, passive income isn’t something most of us are taught to pursue. We’re taught that getting a good job is the surest form of security, and this is considered active income. As the name implies, you’re actively working to earn it.
   
   While having a job can provide you with the capital you need to start earning passive income, passive income is what it takes to become wealthy. So, the next time you wonder what it would be like if you won the lottery, why not ask yourself instead something like, “What would it be like if I created a passive income source that allowed me to pursue my passions without having to worry about money?”

5. Redefine the way you see investing.

   Often, when we hear investing, we think about investing in the stock market or investing in businesses or things like that. But we often forget about the most important investment we can make—in ourselves. There’s no investment you can make that’s quite like the investment you make in yourself.
   
   Imagine if, for example, you decide to invest in courses on wise investing. By taking those courses, you can become a pro at investing, allowing that to become a lucrative income source for you. Or if you invest in books on how to set and achieve financial goals—and read them—that will make it easier for you to reach your financial goals faster.
   
   When you first start taking investing seriously, be serious about investing in yourself. Invest in your education. Invest in your personal development. Take courses, read books, attend seminars. Just do whatever you need to, to become the most empowered version of you. That’s the version of you who’ll be ready to welcome more money into their life and who’ll know how to use it wisely.

Final Thoughts

I am by no means an expert on the money mindset. This is something I’m still actively learning about myself. But as I’ve learned, I’ve discovered these money mindset tips for beginners.

To develop a positive money mindset, it helps if you see money as abundant and release any limiting beliefs you have around it. It’s also helpful to associate money with positive things, consider the importance of passive income in building wealth, and remember that the most important investment you can make is the one you make in you. If you also happen to be a beginner at developing a positive money mindset, I hope you find these tips helpful.

Now it’s your turn. Can you think of any other money mindset tips that would be helpful for beginners? Let me know in the comments.

~ Ashley C.

Note: The advice presented here is for informational purposes only. If you’re in need of professional financial advice, please see a qualified professional.

Last updated: June 21, 2024