Positive Thinking Day: Challenge your negative money mindset

13-09-24 / Daniel Nkosi

Positive Thinking Day: Challenge your negative money mindset

The differences in how South Africans handle money partly comes down to individual mindsets. Thabo Qoako, Consumer Financial Education Specialist at Momentum Group Foundation, suggests that achieving financial success is not only about earning a high income but also about having a positive mindset and approach towards money.

As we commemorate Positive Thinking Day on Friday, 13 September, we often focus on mental wellness, self-care, and overall well-being. However, one critical area of life tends to go unnoticed amid the clutter of positive thinking—our relationships with money.

While we emphasise mental health, Qoako believes that how we feel about money plays a pivotal role in our financial journeys. A positive mindset isn't just beneficial for mental well-being—it's essential for financial success. The way you approach money can greatly influence whether you achieve your financial goals.

"By cultivating a healthy, positive attitude toward personal finances, you're setting the foundation for long-term success and financial freedom. Let's not forget—empowered thinking extends to all areas of life, especially the one that shapes our future stability," says Qoako.

Qoako finds that people with a positive money mindset generally have a solution-oriented attitude and have a more optimistic outlook view to things. They also ask for help rather than struggle by themselves, and often deal proactively with challenges. On the other hand, those with a negative money mindset believe an untruth that 'this is just how life is always going to be.' As a result, they either do not manage their finances well or completely avoid getting organised and spending within their means.

Here's a few actionable tips, on how a positive money mindset can help you build a solid relationship with money, Qoako recommends:

Understanding your thought patterns

Achieving a sound financial well-being isn't just about efficiently managing money; it's about cultivating a healthy mindset and developing sound financial habits which empower you to make better money decisions and secure long-term stability.

Take time to introspect and examine your current thought patterns around money—where they stem from and how they shape your financial decisions. By identifying the root cause of a negative money mindset, you can begin to shift towards a healthier, more positive relationship with your finances.

Facing reality and managing your money realistically

By confronting your financial challenges, you've taken the brave first step toward regaining control of both your life and finances. Now, it's time to go deeper by identifying the differences between good and bad financial habits. Start by reviewing your bank accounts and statements to assess your spending patterns. This will give you clarity on what you want to work towards—whether it's repaying debt, saving for a holiday, buying a house, or preparing for education or retirement.

To achieve these goals, you'll need a solid plan. Tracking your spending and setting a budget will help you understand how long it will take to reach your financial targets.

If this process feels overwhelming, it's perfectly okay to seek professional help. A financial advisor can assist you in identifying and prioritising your goals and creating a personalised budget that aligns with your aspirations.

Set clear, measurable goals

Break down your long-term financial objectives into smaller, achievable steps. For example, if you're saving for a house, set monthly savings targets and track your progress. This approach keeps you motivated and helps you stay on course.

Automate your savings

Make saving effortless by automating transfers to your savings account each month. This way, you prioritise saving before spending and avoid the temptation to skip a month, ensuring steady progress toward your financial goals.

Stay informed and educated

Financial literacy is key to making informed decisions. Invest time in learning about money management, investment strategies, and budgeting tools. Staying informed helps you avoid costly mistakes and empowers you to make smarter financial choices. Sign up to newsletter distribution lists and search out wise, money-savvy podcasters and never miss an episode.

Looking to your future with confidence

While reflecting on past mistakes can be good, dwelling on the past will hold you back from moving forward and making positive changes. A positive mindset does not mean overlooking poor choices but means that you approach these productively. Developing a positive money mindset is about realising that sound money management is possible.