Why You Should Adopt A Growth Mindset — And How To Do It
“I’ll never be able to start my own business.”
“I’ll never have enough to retire.”
“I’ll never have enough to leave behind for my family.”
Any of these thoughts sound familiar? This might mean you’re approaching your finances — and life — with a fixed mindset.
When it comes to financial planning, having a fixed mindset means you believe your ability to invest or save will never improve, causing your financial situation to ultimately stay the same. This way of thinking causes us to focus on paying off debt, rather than seeking out opportunities to invest, save and grow wealth.
A growth mindset is a choice to believe that any goal is achievable with a plan. By believing
that you have the power to improve your financial situation, you will put in the time and effort toward making a plan and reaching your goals. This sets you up for long-term success.
Here are four ways to get started on adopting a growth mindset.
Before we can start revolutionizing the way we view our finances, we first have to take
a deeper look at why we have these fixed beliefs about money.
The reason so many of us have a fixed mindset about money is because we were taught that money is a “scarce” resource and there’s only so much of it to go around. This belief keeps
us in a perpetual cycle of fear and guilt, thinking, “I’ll never have enough.”
The Helmstar Wealth Clarifying Process is designed to facilitate the process of determining your whys, and create a plan that either overcomes them or builds on them… or both.
Challenge the Narrative
Our thoughts direct our actions. When you constantly think, “I’ll never have enough,” or “I’m going to screw this up,” you’re more likely to make poor decisions — or worse yet, no decisions at all.
Instead, practice changing the story you tell yourself about your financial situation. When you encounter a setback, think, “I’ll find a way,” rather than, “There’s no way out of this.” When you’re presented with an opportunity, don’t immediately dwell on the potential failures — think about the possibilities for success.
Value the Process
In financial planning, many tend to focus on the destination rather than the journey. We often hear ourselves saying, “Once I have enough for retirement…” or “When we buy that house…” or “When I start that business...”
But financial planning is just as much about the present as it is about the future. It’s life planning. We can’t do anything to speed up time — but we can choose to learn from every step along the way. Focusing on what we can save and invest now will lead to better results later.
Seek Out New Perspectives
Consulting with someone who is outside your close social circle can provide a more objective assessment of your situation. For example, because the Helmstar team works with a range of clients, we’ve likely seen the challenge (or opportunity) you face. And we can provide insights, tools and strategies you may have never considered before, ones that may take you closer to the life you really want.
Ultimately, adopting a growth mindset is always a choice. We have to stop viewing money as a scarce resource and our financial situation as unchangeable.
Instead, we have to choose to believe that anything is possible with a plan.