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Would it surprise you to learn that the deciding factor in whether or not you’re wealthy is not the amount of cash you have, but how you think about money?

The desire for greater wealth is perfectly human, but the path to abundance isn’t just the pursuit of profit, but the attainment of a kind of enlightenment.

A positive money mindset, for many of us, is incredibly difficult to achieve. This isn’t our fault. From the time we are old enough to talk, the majority of us encounter negative beliefs concerning money.

We live through negative money situations. From listening to our parents fight and bicker over a lack of money, to longing for things we are unable to buy because we’re still young, to struggling to find work, gain independence, feed and clothe ourselves.

Even those born into wealth encounter negative beliefs around money. Wealth doesn’t prevent you from having a negative money mindset. We are socially trained to see money in a negative light – just the expressions we have surrounding money are overwhelmingly negative.

Phrases like ‘money doesn’t go on trees’ inextricably links wealth to a sense of lack.

How about the notion of ‘Fat Cats’, the ‘wealthy elite’ and ‘the 1%’? All of which teach us that rich people are inherently greedy, elitist, snobbish, and achieve their wealth by keeping the other 99% down.

Worse still are idioms like, ‘money is the root of all evil’, which go far beyond negativity and actively paints wealth as a malevolent force.

Why We Need A Positive Money Mindset To Create Wealth

All these thoughts, swirling in our subconscious minds, create a negative and even toxic perception of money. It’s no wonder we struggle to muster a positive money mindset.

Breaking through all that negativity and developing a positive money mindset is a lot tougher than it seems.

Money negativity often runs deep; it’s cultural, part of our social consciousness, and constantly reinforced by the people around us, the media, even our history and fictional entertainment.

Yet break it you must, for as long as you hold on to those negative beliefs, the life of abundance you crave (and deserve!) will always be out of reach.

It’s important to understand that a lot of people (possibly even most people) have a negative money mindset and don’t ever realise it.

The fact that so many people share this state of mind has normalised it. Not only is it seen as perfectly fine to think about money in a negative way, it’s often not considered ‘negative’ at all, but simply the nature of money.

In fact, you may encounter resistance to your efforts to develop a positive money mindset, because people are so used to their negative attitudes they’re unable to see them in that light.

As a result, your positivity can come across as over the top, a bit ‘woo woo’, and even irritating to some people. They may even try to discourage you, and shift you to think on their own terms again (especially if you always have before).

Don’t let it bother you!

With any luck your new-found positivity about money will rub off on the people around you, and help them create a more positive money mindset too.

The Difference Between A Positive And Negative Money Mindset

At this point you’re probably thinking, “Okay, great. But what exactly is the difference between a positive and negative money mindset?

Very simply put, a positive money mindset says money is an endless bounty and the world is an unending source of opportunities.

On the other hand, a negative money mindset considers money as a limited resource only obtainable through limited means, while the world is a separate entity to the forces that govern financial aspects of life.

Entrepreneurs generally have a greater capacity for a positive money mindset, because they have already thought, “I can make money doing this!”, and created an opportunity to generate income where previously it didn’t exist.

That said, a lot of entrepreneurs still struggle to maintain a positive money mindset.

Here are a few examples of negative vs. positive money mindsets, and how you can shift from one to the other. Some of them might surprise you, as they don’t appear (at first glance) to have anything to do with money!

Ego Vs. Knowledge

A negative mindset is ruled by the ego. (NOTE: I’m using the term ‘ego’ here in the psychological sense of a person who thinks using their conscious and subconscious, but not they’re unconscious. It relates to your sense of self-esteem and importance. I’m not implying people with a negative mindset are egotistical!)

When someone with a negative money mindset encounters a situation they don’t understand (or at least don’t fully understand), they do one of three things:

  1. Pretend they know exactly what’s going on in order to ‘save face’.
  2. Remain oblivious to their ignorance and genuinely believe they know best. (Attempts to tell them they’re mistaken may be met with hostility!)
  3. Accept the situation is unfathomable but, rather than realising it’s due to a gap in their understanding, or a misunderstanding on their part, presume someone else involved is responsible, and has made a mistake, or is potentially even trying to deceive them.

There is nothing wrong with any of these reactions, they are totally human. But they frequently have negative consequences because they don’t result in positive action that solves the problem, and can lead to hostility and arguments. What they do achieve is protecting the ego, which is running the show.

Conversely, a positive mindset is ruled by the super-ego (again, a psychology term that indicates a person who thinks using their conscious, subconscious, and unconscious). When you have a positive mindset you react quite differently to situations you don’t understand by:

  1. Quite plainly stating you don’t understand the situation, and asking whoever else is involved to explain it to you.
  2. Genuinely believing you know what’s going on and, when it is suggested that that are mistaken, listen with an open mind, consider the possibility, and if (when presented with a logical argument, or proof of your former ignorance), accept you were mistaken and ask for further explanation if needed.
  3. Accept a situation is outside your knowledge and, rather than look to external forces to assign blame or fix the problem, take responsibility and find the additional knowledge needed to bridge the gap.

We all know people who have a mixture of these reactions, but we’ve probably never stopped to think about the broader implications it has for their overall mindset.

Take that friend or family member who is always ‘right’, even when you both know they are wrong. You know the one; they dig in well past the point they’ve realised they were wrong, refusing to admit it and choosing to argue doggedly on.

They have a negative mindset.

Then there’s the other friend or family member who can regularly be heard saying, ‘I don’t know what that means’, and listening carefully to the explanation given. Or hopping on their phone to Google something they don’t know.

They have a positive mindset.

A positive mindset is a questioning mindset that is constantly thirsty for knowledge, understands that knowledge is infinite, and ignorance of a particular subject is not a ‘lack’, but a reflection of that infinite scope of information and an exciting opportunity to learn.

How Money Factors Into Ego Vs. Knowledge

In a situation that is unknown or misunderstood, a person with a negative money mindset might plough ahead even though they don’t fully understand, and end up paying a lot more for something than they needed to.

They might buy something that’s faulty, or unsuitable for the task, because they didn’t fully understand what was needed, or how it was supposed to work.

They will react negatively to situations like a phone provider calling and telling them they can save money on their plan, assuming it’s a ploy to get them to change to a new plan, buy something else, or waste time on a questionnaire. It usually doesn’t occur to them it might be true. If it does, and they take the time to listen but don’t get the discount (perhaps because they turn out to be ineligible), they will feel hard-done by, as if they have lost out on an opportunity, or even lost money.

When faced with a bill that is more than they were expecting, they will presume it’s a mistake on the part of the provider, and spend a great deal of time and energy trying to argue the bill down. If they really dig in, they may even refuse to pay the bill until it’s been sorted out, incurring fines and late payment fees, all over a bill that was correct from the start.

In the same situations a person with a positive money mindset will recognise they don’t know enough, and pause long enough to learn more, or enlist the help of someone who knows more.

They will happily chat to people asserting they can save them money, at least long enough to ascertain if it’s genuinely the case or not, and if it turns out it’s not the case (i.e. they’re not eligible for the offer), they won’t feel hard-done-by, but glad they took the time to check. After all, had they been eligible, it would have been well worth it.

When faced with an unexpected bill they may query it, wondering if it’s correct, but they don’t assume it’s wrong. It’s merely to ascertain why it’s higher than expected. This allows them to take action to reduce the bill, or plan better in the future. Once they know, they pay the bill.

Switch To A Learning Outlook

To develop a positive money mindset, keep an eye on how you react in situations that challenge your understanding.

If you notice yourself digging in and refusing to entertain the possibility you don’t know everything (nobody does!), or pretending you know something you don’t understand, check yourself.

Admit out loud that you don’t know what something means, or you’re not following the topic or situation.

Ask someone to explain it to you (and be open to the answer!), or take the time to research it yourself until you are well-versed.

Consumerism Vs. Entrepreneurship

Here’s another example that is a lot easier to understand in terms of money.

A negative money mindset gives people a consumer mentality. They look at a flash new car, or designer clothing range, and think about buying them.

A positive money mindset gives people an entrepreneurial perspective, and makes them think things beyond simply purchasing stuff they want. Things like:

“How can I create something like this in my own niche?”

“What is it about their marketing that’s so effective, and how can I emulate it?”

“This brand is amazing, how can I make my own brand this strong?”

“This gives me a great idea for a new business!”

“How can this further my business?”

In other words, they think like an entrepreneur, rather than a consumer about everything. Products and services aren’t simply things that can be bought. They are opportunities for creating new businesses ventures, or expanding existing ones.

Even seemingly unrelated things like hiring a cleaner, buying new clothes, getting a different car, or going on holiday, are viewed through the lens of opportunity rather than consumerism.

The cleaner isn’t just going to make your home clean, they will improve your quality of life, and free up your time to either focus more on work, or relax and enable you to become more productive when you do work.

New clothes or a new car can make you feel like a million bucks and allow you solidify your image as a successful, lucrative brand.

Holidays have a similar effect in both regards, and anything that boosts your wellbeing is an opportunity to not only improve your quality of life, but also the quality of your work, and thus your profitability.

Think Like An Entrepreneur

Ever heard the expression, “If it looks like a duck, walks like a duck, and quacks like a duck, it’s a duck’?

When you think like an entrepreneur by viewing everything as an opportunity, rather than a commodity to be bought and either consumed or displayed, you start to be perceived as an entrepreneur, you begin to act like an entrepreneur, and you talk like an entrepreneur.

Likewise when you foster a positive, wealthy and abundant mindset the world starts to see you as a wealthy person, who takes positive action from that abundant point of view, and talks about money in a positive way.

Keep that up for long enough and you become a successful duck (by which I of course mean, a wealthy and abundant entrepreneur!).

Wish Vs. Reality

Perhaps the easiest distinction to understand between positive and negative money mindsets is that of wish vs. reality.

A negative money mindset will lead you to daydream about winning a fortune on the lottery, making your fortune by inventing something spectacular, writing a best-seller, or starting a business that takes off and becomes hugely successful.

A positive money mindset will lead you to work on new inventions until you come up with the one that catapults you to success.

It will see you sitting at your keyboard day in, day out, working on that bestseller and, in the event you finish it and it’s a flop, picking up your pen and starting all over again until you nail it.

It compels you to take that business idea, turn it into a business plan, set up shop, and start trading.

It’s also the thing that, in the event your first business fails, compels you to think of a different idea and try again.

While people with negative money mindsets dwell in the realm of wishes, lamenting their current lack of success, and longing for a magic bullet to come along and fix it. People with positive money mindsets occupy reality; they go out and make it happen.

More than that, they’re constantly assessing their current level of success, and considering how they can further it.

They also assess the success of others, not to draw comparisons and feel jealous of the other person, but to figure out what they can learn for their own success.

Focus On Taking Action In Reality

An easy way to boost your positive money mindset is to focus on taking tangible action that will further your goals and dreams for your business, rather than simply daydreaming about the day you become successful.

Pessimism Vs. Possibility

In a similar vein there is the pessimism that comes with a negative money mindset, and the possibility afforded by one that is positive.

Negativity will lead you to consider a challenging idea and see it in terms of all the problems, hurdles, and reasons it might not work.

Positivity will lead you to look at that same idea and turn it around in your mind, considering every angle, until you have a workaround for all those problems, and a clear idea of how you can make it work.

Ditch the Pessimism For Possibility

Becoming more positive in this regard is really straightforward: don’t give up on things so easily. Even when they seem impossible, if it’s something you are passionate about, or think could genuinely be great, keep at it until you’ve found a way round those issues.

That’s why it’s considered a challenge; if it were easy, everyone would be successful and wealthy.

It’s the people who persevere despite the obstacles that actually succeed and create a life of abundance.

And Finally…

By making these changes in how you think about money, you will be on your way to developing a positive money mindset. Once you begin thinking about money in a positive way, you will be on the path to achieving your own wealth.

Like I said at the start, a negative money mindset is a very common thing, instilled in us from the earliest age. Sometimes you need to go all the way back to the beginning and unravel a convoluted thread in order to see where your negativity comes from.

In other words, it’s not enough to understand the difference between a positive and negative money mindset, and try to force yourself to see things differently. You need to understand where those perceptions come from, and connect your self-beliefs, old beliefs from childhood, and the attitudes of people around you (both now and as you were growing up), in order to free you mind of all that negativity and make room for the positivity.

There’s a reason we call it ‘mindset’ and I’ve been explaining it in psychological terms – it’s all about what you think and how those thoughts developed. This can be tricky to work out on your own, so to really get you started, and shift that mindset from negative to positive, I’ve created a free Money Mindset Workbook to walk you through the process step by step. Grab your copy below and get started…

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