4 steps to change a negative money mindset

Your relationship with money is deeply rooted in your past, often shaped during your formative years by early experiences and the attitudes you observed from your primary caregivers. These influences, absorbed primarily during the imprint period, frequently become ingrained as your personal truth, consciously or unconsciously impacting how you handle finances as an adult.

Limiting beliefs about money, if left unchecked, can continue to influence your financial decisions, causing stress and holding you back from financial growth and empowerment. By uncovering these ingrained beliefs and reframing your approach, you can begin to reshape your relationship with money.

3 limiting money mindsets that may be holding you back

Scarcity mentality

The belief that there is never enough. This often leads to fear-based decisions, such as hoarding money or being overly frugal to avoid financial insecurity. This mindset is tied to limiting beliefs such as ‘money doesn’t grow on trees’ or ‘you have to work hard to earn money’. The scarcity mindset mirrors emotional patterns where you might feel unworthy of abundance and continuously fear not having enough, both financially and emotionally.

Money is harmful

Some people associate wealth with greed or corruption, subconsciously blocking opportunities to accumulate wealth because of negative connotations. This mindset is rooted in beliefs like ‘money is the root of all evil’ or ‘having money makes me a bad person’. These limiting thoughts may cause you to subconsciously reject financial growth, sabotaging your ability to build wealth.

Passive financial approach

This belief involves avoiding financial management or feeling that handling finances is someone else’s responsibility. It is often tied to the idea of ‘burying your head in the sand’ and can stem from a lack of financial education, fear of making mistakes, or financial control by another person. Like low self-worth, avoiding financial decisions can be driven by feelings of inadequacy or fear of failure.

Each of these mindsets can limit your ability to build and sustain financial wellbeing. However, by creating awareness around them, you can begin to shift towards a more positive and empowered financial mindset.

Use the following prompts to dive deeper into your relationship with money and begin identifying limiting beliefs that may be affecting you:

Step 1 – Explore Money Beliefs Inherited from Primary Caregivers

• What beliefs about money did you learn from your mum, dad or primary caregivers? Reflect on the conversations you overheard about money. Were they positive or filled with stress and fear? This can provide insight into the beliefs you absorbed as a child.
• How did your caregivers earn, save and spend money? Think about their habits around money. Did they save diligently or spend freely? How did they handle debt? These habits often pass down from one generation to the next.
• Did your caregivers fight or calmly discuss finances? Reflect on the emotional environment surrounding money in your home. Was it a source of tension, or did your caregivers discuss it openly and without conflict?

How did your caregivers talk about wealthy people? What attitudes did they express about people with wealth? Did they celebrate their success or criticise them for being greedy or unwholesome? This can shape how you feel about your own potential to accumulate wealth.

Step 2 – Reflect on Your Financial Situation Growing Up

• Was there enough money growing up, or was it a struggle? Consider how your childhood experiences with money affected you. Did scarcity in your home make you anxious about spending, or did wealth make you complacent about managing your finances?
• What historical era did you grow up in? Where are you in your family’s birth order (e.g., eldest, youngest)? Reflect on how economic conditions during your childhood or your family dynamics may have influenced your views on money.
• How did your family lifestyle affect your early view of success? Reflect on how your family’s financial status shaped your perceptions of success and happiness. Did it create pressure, or did it provide a sense of comfort?

Step 3 – Consider the Impact of Your Money Beliefs Today

• How do the beliefs you inherited affect your relationship with money today? Trace the connection between your childhood experiences and your current financial habits. For example, if your parents were overly frugal, do you now feel guilty about spending on yourself?
• What limiting beliefs do you notice in your financial decisions today? Explore how your beliefs may hold you back, like avoiding financial risks or feeling anxious when spending. Do you associate spending money with guilt or fear? Are there any positive money habits you’ve inherited? Not all inherited money beliefs are limiting. Reflect on positive financial habits or mindsets you’ve adopted that have served you well.

Step 4 – Reframing Your Money Beliefs

• Which beliefs no longer serve your financial wellbeing? Consider how your current money beliefs are serving you. Are these beliefs still true for you? Reflect on which ones feel outdated, unhelpful, or no longer aligned with your reality, and which ones support your growth.
• How can you start shifting your mindset to create healthier financial habits? Write down any new beliefs you’d like to adopt about money. For example, ‘I am worthy of financial abundance,’ or ‘I manage my money with confidence and clarity.’

By using these prompts to explore and reflect on your financial history, you’re taking a crucial step towards building a healthier, more empowering relationship with money. Becoming aware of the money beliefs you’ve inherited allows you to reshape them and move forward with greater financial empowerment. For example, if you have a scarcity mindset, you might feel there is never enough money, no matter how much you actually have. As you address and reframe these beliefs, you’ll regain control over your financial future and lay the foundation for lasting wealth and abundance.

Source: Flying Solo April 2025
This article by Emma Lagerlow is reproduced with the permission of Flying Solo – Australia’s micro business community. Find out more and join over 100K others https://www.flyingsolo.com.au/join.
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